Heat Pump Water Heaters: A Win-Win for Installers and Homeowners
Heat pump water heaters (HPWH) are a win-win. These efficient water heaters can increase the ticket price of a job and save the homeowner hundreds of dollars a year on utility bills. However, selling a HPWH may need a slightly different approach compared to selling a standard electric tank. Below are easy-to-reference benefits you can share with customers to help explain why a HPWH makes sense, as well as business considerations about how this efficient product can improve an installer's bottom line.
- Savings on utility bills. On average, consumers who switch from a standard electric tank to a HPWH can save roughly $90 a year for each person in a household. So, a family of four could save up to $360 depending on usage and local electric costs.
- Longer warranty. All qualifying HPWHs carry a 10-year warranty versus a 6-year warranty for a standard electric tank. This offers peace of mind for the homeowner.
- Rebates and credits. Most electric utilities offer considerable rebates on HPWHs - some up to $800. You can find your local utility here by entering your ZIP code, or you can download these quick reference utility rebates flyers to see what's available in your area. Plus, through the end of 2020, consumers can get a $300 Federal tax credit on the purchase of a HPWH.
The Hot Water Solutions team developed a handy Efficient Water Heater Buyer's Guide that includes all the features, benefits and considerations a homeowner needs know in order to make an informed decision. Consider sharing this guide with your customers and linking to it from your website.
- Higher margin. Installers determine pricing strategy by considering product and material costs, labor, overhead, and desired net profit. Installing two HPWHs in a day versus three standard electric tanks could net the same total profit for the day. So, it stands to reason that pricing each job with a gross profit per day target in mind will make more revenue, and create a more satisfied customer thanks to ongoing energy savings. This article from Contractor Magazine goes into greater depth on how HPWHs can be a profitable addition to an installer's business.
- Higher customer satisfaction. Research conducted by The Northwest Energy Efficiency Alliance reveals that HPWH customers have a 93% satisfaction rating. Why? Because not only does the homeowner reap the benefits above, it means they are satisfied with the experience with their installer. Installers who look after their customer's best interests are more likely to be referred to family and friends. Read the full research report here.
- Access to tools and resources. It may not seem like it, but these efficient water heaters are getting a lot of attention from utilities, energy efficiency organizations and major manufacturers. That's demonstrated by the significant utility rebates offered and the investments manufacturers have made to improve efficiency, ease of install, and performance of HPWHs. Through the Hot Water Solutions program, installers can get hands on training support, access to sales and marketing materials and more to take advantage of growing interest in HPWHs. To learn more about the resources available to installers, contact the Hot Water Solutions team.