HVAC Boundary Spanners Podcast S02E02: Why rebates and incentives suck
Jul 31, 2024
The discussion explores how homeowner rebates complicate the decarbonization process, often creating friction and misaligned priorities. Contractors have mixed views on incentives, with some seeing them as disruptive. The conversation highlights the pitfalls of short-term subsidies, which can lead to poor service and negative experiences. It argues for a shift from piecemeal solutions to a more holistic approach, suggesting that resources should be focused upstream to foster lasting change in the industry.
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Downstream Rebates Fail To Transform Markets
- Downstream rebates usually add friction and fail to produce lasting market transformation in HVAC.
- Guest (HVAC practitioner/analyst) reports 15 years of programs that temporarily boost sales but revert when incentives end.
Incentives Shift Focus To 'Free' Rather Than Fixing
- Rebates shift focus from solving the customer problem to chasing free money and cheap options.
- Guest warns that prioritizing 'cheap' often sacrifices results and creates negative experiences.
Jeep Analogy For Boom‑Bust Cycles
- The guest likened contractors toggling between program-driven work and normal business to a Jeep switching between two- and four-wheel drive and spinning out.
- That analogy illustrates the instability caused by start-stop incentive cycles.