1、Published April 20242024ElectrificationContractor S22024 Electrification Contractor SurveyAcross the US,the solar landscape is evolving rapidly,as homeowners are increasingly thinking about solar not as a one-off purchase but rather as a piece of their path towards broader electrification.From a hom

2、eowners perspective,this transition is complex and expensive.So,the onus to provide that education and support has largely fallen to contractors in different industries,from solar installers to HVAC technicians to electricians.At the same time,contractors face a difficult labor environment and a con

3、stantly shifting macroeconomic reality,further taxing the people and businesses who shoulder the risks of selling and installing new products that arent yet familiar to consumers.As the solar industry has evolved,so too have we at EnergySage.From our origins in residential rooftop solar,weve added t

4、he ability for consumers to shop for energy storage systems,community solar subscriptions,air source heat pumps,and,most recently,electric vehicle chargers,all in one place.In building these additional business units at EnergySage,one thing has become abundantly clear to me:The energy transition res

5、ts on the shoulders of contractors.And yet,the opportunities for contractors to lend their voice to the narrative are few and far between.To that end,we are excited to share our eighth annual Contractor Survey but our first that expands the breadth of our survey beyond just solar.At the end of 2023,

6、we launched our first ever Electrification Contractor Survey,targeting all types of contractors offering solar,storage,heat pump,EV charger,main panel upgrades,and more.From my perspective,the most important takeaway is this:Contractors are confident that their business will grow over the next three

7、 years across all product categories.After reviewing the results,its clear that the solar industrys success is tied directly to the overall success of electrification trends and vice versa.I look forward to hearing what you find valuable and how you apply it to your business.Enjoy!Charlie Hadlow Pre

8、sident&COOExecutive 32024 Electrification Contractor SurveyGeneralSolarStorageHeat pumpsElectrical upgradesAs the countrys leading online comparison-shopping marketplace for rooftop solar,energy storage,community solar,and heat pumps,EnergySage works closely with our network of hundreds of pre-scree

9、ned solar installation companies throughout the country.Our unique relationship with these solar installation professionals as well as lenders,manufacturers,and distributors affords us unparalleled insight into the trends shaping the U.S.solar industry.Since 2015,weve fielded an annual survey of sol

10、ar installers nationwideboth to EnergySage partners and contractors doing business outside our platformto put our finger on the pulse of the installer mindset.How confident are installers about the solar industry?What are the barriers to growing their businesses?How do they see the industry evolving

11、?And what are their plans for the coming years?In 2023,we expanded our annual solar installer survey to be a broader electrification contractor survey,capturing responses from solar installers,electricians,HVAC contractors,and other service providers.We asked both common and segment-specific questio

12、ns across contractors installing various electrification products,including solar,storage,heat pumps,electric vehicle chargers,main panel upgrades,and even operations and maintenance services.In this report,weve first provided a breakdown of general business trends,followed by product-specific infor

13、mation for each electrification segment.We conducted this survey during the fourth quarter of 2023 in collaboration with equipment manufacturers,financing companies,and industry non-profit groups.Overall,nearly 400 contractors from 40 states,including Washington,DC and Puerto Rico,responded to the s

14、urvey.Two-thirds of responses to this years Survey come from the CEO,Founder,or VP-level executive at their respective company.Methodology and overviewWHATS INSIDESurvey responder locations2024 ELECTRIFICATION CONTRACTOR SURVEYGeneral Business T52024 Electrification Contractor SurveyHome electrifica

15、tion is not just one segment or industry but an amalgamation of multiple different types of businesses whose employees have varied skill sets.One thing is true across all of these segments:There are major players,but as with most trades,nobody dominates the market.As a result,electrification is driv

16、en by the long tail of contractors.For instance,in the solar industry,several thousand companies install at least one residential system every year,and the top 75 companies account for less than 50%of all installs,according to Wood Mackenzie.This dynamic is even more pronounced in the HVAC industry,

17、where its estimated that over 100,000 unique companies are operating in the US.To better understand who these companies are and how they compare across segments,we asked them about their businesses.How long have they been in business?How many employees do they have?How many states do they operate in

18、?General business trends overview GENERAL BUSINESS TRENDSWhat portion of their revenues come from their main line of business?What are their growth plans for the coming years?And how have they experienced the labor market in the past year?The respondents to this years survey are largely a part of th

19、at long tail:75%of respondents operate in only one or two states,and 67%of companies employ 25 people or less.These companies have generally been in business for 6 to 15 years and typically see their primary line of business(i.e.,solar or HVAC)account for 70%of their revenue.These contractors also f

20、orecast growth over the coming years but are having difficulty finding qualified professionals to join the team due to a lack of industry-specific experience and knowledge,as well as increasing hourly labor rates.FORECAST CHANGE IN ANNUAL INSTALLATIONS OVER THE NEXT THREE YEARS FOR YOUR BUSINESS40%6

21、0%30%20%0%10%50%38%44%51%42%16%36%SolarStorageHeat pumpsEV chargersMain panel upgradesO&M62024 Electrification Contractor Survey40%45%72345630%35%20%25%10%15%0%5%891%5%9%37%38%4%1%1%0%Installers operate primarily in one or two states(average number of states operating in is 1.7).Two-thirds of compan

22、ies have fewer than 25 employees.About your businessHOW MANY STATES DO YOU OPERATE IN?HOW MANY EMPLOYEES DO YOU HAVE?20040%45%30%35%20%25%10%15%0%5%GENERAL BUSINESS TRENDSWhat do electrification contractors call their business?Full service contractor or energy transition company.2%10+states1 72024 E

23、lectrification Contractor Survey35%40%Contractors business strategy is to expand into new products and markets.This is a new answer choice in this years survey.Gaining market share remains more important than increasing margins.WHICH STATEMENT BEST DESCRIBES YOUR BUSINESS STRATEGY OVER THE NEXT 3 YE

24、ARS?MARKET SHARE VS.MARGINS:WHICH IS MORE IMPORTANT?58%63%60%Gain market shareBusiness strategy25%64%62%58%54%Increase gross margins42%37%40%36%38%42%46%Expanding into new products&marketsGaining market shareIncreasing gross margins202015GENERAL BUSINESS TRENDS82024 Electrifica

25、tion Contractor SurveyGreat difficultySome difficultyLittle to no difficultyDont know The labor market is difficult.Hourly labor rates increased by 15-20%in 2023.Contractors report difficulty filling open positions,primarily due to lack of industry-specific knowledge or skills.Contractors are strugg

26、ling to fill a wide range of roles,especially electricians and field technicians.HOW DIFFICULT IS IT FOR YOU TO FIND QUALIFIED PROFESSIONALS FOR OPEN POSITIONS?Labor36%47%10%10%PLEASE SELECT THE TOP TWO REASONS FOR YOUR REPORTED HIRING DIFFICULTY.Lack of experience/industry-specific knowledgeSmall a

27、pplicant poolInsufficient non-technical skillsCompetition with other industriesHigh turnoverInsufficient certificationsOtherDont know49%26%35%14%12%5%5%10%40%50%60%10%50%30%0%GENERAL BUSINESS TRENDSSolar2024 ELECTRIFICATION CONTRACTOR SURVEY102024 Electrification Contractor SurveySolar overviewSOLAR

28、To that end,when asked about the primary barrier to growing their business,the most common answer from solar installers was a lack of desirable financing optionseven more than the challenges of customer acquisition,or a lack of trained labor.But there are reasons for optimism.First,there are still m

29、yriad incentives for solar.While solar contractors are very familiar with both federal and local incentives,they report only half of their shoppers are familiar with these incentives.Continuing to educate consumers about the potential savings from incentives available to them will be a crucial strat

30、egy to help the industry rebound.Second,solar is no longer a stand-alone sale and install:According to EnergySage Marketplace data,a quarter of solar installers installations in 2023 included a battery.Finally,although installer confidence in the industry may be low,solar companies have high hopes f

31、or the near future:Over 80%of respondents expect their annual installations to increase by more than 30%on average over the next three years.2023 was a year of contradictions in the US solar industry.On one hand,2023 was the best year ever for residential solar installations,with nearly every quarte

32、r setting a new record for deployed capacity.On the other hand,following a year of shifting net metering policies and increasing interest rates,installer confidence in the solar industry is at its lowest point since 2016.At the core of this years responses is a fundamental tension in solar sales:The

33、 primary reason that consumers purchase solar is to save money,but the biggest driver of lost sales is cost or perceived cost.In 2023,installers experienced a year of rising costs and less favorable consumer economics,hampering sales.For instance:Three-fifths of installers say their equipment costs

34、increased in 2023 by a median of 5%;California installers anticipate the transition to the net billing tariff will lead to a 22%reduction in sales volume in 2024 due to reduced solar savings.Four-fifths solar installers say increasing interest rates decreased interest in solar.Three-quarters of inst

35、allers said their businesses had been adversely impacted as a result of those increasing interest 112024 Electrification Contractor SurveyOver half of respondents have been installing solar for more than 10 years.Over 80%of respondents expect their annual installations to increase over the next thre

36、e years.Average is 38%growth,median is 30%growth.56%of people who say sales will decrease are in California.Median for people who expect growth is 50%growth in installs.25%20%10%15%0%5%2529%HOW LONG HAVE YOU BEEN INSTALLING SOLAR?About your businessSOLARFuture business growth25%20%10%15%0%5%5%20%18%

37、9%17%40-6060-8080%23%HOW DO YOU EXPECT ANNUAL INSTALLATIONS WILL CHANGE OVER THE NEXT THREE YEARS?30%35%20-400-20-20-0=20%9%Percent increase in installationsPercent 122024 Electrification Contractor SurveyInstallers generally say their shoppers are unfamiliar with the policies and incentives that ar

38、e available to them.Not familiar at allSlightly familiarModerately familiarVery familiarFAMILIARITY WITH INCENTIVES:CONTRACTORS&SHOPPERS0%40%20%100%80%Contractors familiarity with the IRAContractors familiarity with local incentivesShoppers familiarity with incentives available60%Extremely familiarP

39、olicy familiaritySOLAR132024 Electrification Contractor SurveyDesirable financing options overtook customer acquisition(2019-20)and trained labor(2021)as the biggest barrier to growing businesses.WHAT IS THE PRIMARY BARRIER TO GROWING YOUR BUSINESS?Barriers to growing your businessSOLARLack of desir

40、able financing optionsCustomer acquisitionLack of trained laborConsumer interest and awarenessPricing of equipmentSoftware tools to scale business efficiently20%25%30%5%10%15%0%Permitting rules and costInterconnection rules and 142024 Electrification Contractor Survey62%of installers saw equipment c

41、osts rise in 2023.Those that say costs rose say they increased by an average of 15%.Solar remains a high margin business.The average&median reported customer acquisition cost(CAC)is well below other solar industry benchmarks,such as those published by Wood Mackenzie and NREL.Costs of doing businessS

42、OLARContractors remain consistent when listing expenses,but differ from NREL benchmarks on equipment vs.install vs.CAC costs.11%11%15%SOLAR INSTALLER SHARE OF WALLETBreakdown of costsEquip cost change(%)Solar margins(%)CAC($)Average527$1,505Median524$700Net profitPermitting and interconnectionEngine

43、ering and designCustomer acquisitionOverheadInstall laborEquipment80%100%60%70%40%50%20%30%0%10%90%NREL(2020)NREL(2021)NREL(2023)InstallerSurvey(2020)InstallerSurvey(2021)InstallerSurvey(2023)8%9%4%2%18%16%16%11%10%11%7%7%7%45%44%46%14%15%15%6%6%4%8%6%8%11%12%13%20%39%35%37%19%21%7%2%152024 Electrif

44、ication Contractor SurveySOLARWHAT IS THE PRIMARY REASON YOUR SOLAR CUSTOMERS PURCHASE SOLAR?The main driver of sales is saving money while the main driver of lost sales is pricing or perceived cost.Primary drivers of sales&lost sales80%90%60%70%40%50%20%30%0%10%Avoid power outages2%82%8%8%9%20%40%3

45、0%20%10%0%WHAT IS THE BIGGEST DRIVER OF LOST SOLAR SALES?50%60%Help the environmentSave moneyNot the right timingCompetitors sales tacticsCost/pricing51%Lack of customer knowledge of what theyre 162024 Electrification Contractor SurveySOLARImpact of increasing rates on demandWHAT IMPACT HAVE INCREAS

46、ING INTEREST RATES HAD ON CONSUMER INTEREST IN SOLAR?40%20%60%100%80%Increasing interest rates impacts businesses and consumer demand.82%say increasing interest rates has decreased interest for solar.75%say increasing interest rates have adversely impacted their businesses.HOW HAVE CHANGING INTEREST

47、 RATES IMPACTED YOUR BUSINESS?40%0%20%60%100%80%Decreased business significantlyDecreased business slightlyNo changes to businessIncreased business slightlyIncreased business significantly0%45%32%19%3%1%47%32%36%11%4%1%Much less intentSlightly less interestNo change in consumer interest in solarSlig

48、htly more interestMuch more 172024 Electrification Contractor SurveySelling with financingSOLAR59%HAVE YOU NOTICED ANY DIFFERENCE IN LOAN PRODUCT SALES IN THE PAST THREE MONTHS?23%19%40%0%20%60%100%80%DecreaseNo changeIncrease40%of deals are financed.85%of installers offer loan products.59%of instal

49、lers say loan product sales have decreased recently.75%of installers say rate increases have reduced financed deal flow.33%of installers say they need new financing partners and struggled to find one.42%HAVE YOU NOTICED ANY DIFFERENCE IN LOAN PRODUCT SALES IN THE PAST THREE MONTHS?33%20%40%0%20%60%1

50、00%80%4%1%Greatly reduced the volume of deals I close with financingSomewhat reduced the volume of deals I close with financingNo changes or neutralIncreased the volume of deals I close with financingGreatly increased the volume of deals I close with 182024 Electrification Contractor SurveyStrategie

51、s to mitigate rate impactSOLARInstallers anticipate that interest rate impacts will continue for a year or longer.3 of 5 installers are planning to combat high interest rates by finding new financing options.IF YOUR BUSINESS HAS BEEN IMPACTED,WHAT ARE YOUR STRATEGIES TO REDUCE THE IMPACT OF HIGHER I

52、NTEREST RATES ON YOUR BUSINESS?Find new financing optionsReduce pricesIncrease spend on customer acquisition channelsReduce soft costsReduce the size of your staff20%70%10%0%Other 60%50%40%30%HOW LONG DO YOU EXPECT THESE INTEREST RATE IMPACTS TO CONTINUE?One quarterTwo quartersThree quartersFour qua

53、rtersor more70%20%10%0%60%50%40%30%192024 Electrification Contractor SurveyThird party owned(TPO)financing offeringsSOLAROnly a quarter of respondents offer TPO products(e.g.,leases and PPAs).Of those that do:Just under half say TPO sales have not changed since the IRA passed.Two-thirds say under 25

54、%of their sales will qualify for ITC adders.17%HAVE YOU NOTICED ANY DIFFERENCE IN TPO PRODUCT SALES SINCE THE IRA WAS PASSED?45%38%40%0%20%60%100%80%DecreaseNo changeIncreaseHOW MUCH OF YOUR SALES DO YOU EXPECT TO QUALIFY FOR ANY ITC BONUS ADDERS?40%70%30%20%10%0%50%60%65%23%4%8%75%202024 Electrific

55、ation Contractor SurveyImpact of net metering changes in CaliforniaSOLAR29 California installers responded to NEM 3 questions.Forecast 2023 will be down 15%y/y.Expect 2024 will be down 22%y/y.None say theyll shut down the business or exit the California market.HOW DO YOU PLAN TO ADAPT YOUR BUSINESS

56、AS A RESULT OF THE NEW BET BILLING TARIFF?2023/20222024/2023Average-15-22Median-2-1340%30%20%10%0%50%60%WHAT ARE YOUR EXPECTATIONS OF NEM 3S IMPACT ON YOUR SALES VOLUME(%Y/Y)?48%14%0%0%38%Sell solar plus storage onlySell solar onlyShut down the business completelyExit the California marketNo adaptat

57、ion 212024 Electrification Contractor SurveyMost installers say they dont rely on door-to-door selling or resellers but 40%use direct sales/advertising.Customer acquisition channels usedSOLARACQUISITION CHANNELS:DO NOT USEACQUISITION CHANNELS:USE FREQUENTLY202182023EventsPurchased leadsOn

58、linemarketplaceplatformsDirect salesand advertisingReferralsDoor-to-doorResellersPartnerships20%0%10%90%30%80%70%60%50%40%20%0%10%90%30%80%70%60%50%40%EventsPurchased leadsOnlinemarketplaceplatformsDirect salesand advertisingReferralsDoor-to-doorResellersP222024 Electrification Contractor SurveyInst

59、aller confidence is down across the country.Installers cite rising interest rates,NEM changes in California,and poor sales tactics from other companies.Confident installers cite increasing electricity rates.2023-60%COMPARED TO ONE YEAR AGO,HOW HAS YOUR CONFIDENCE IN THE SOLAR INDUSTRY CHANGED?Instal

60、ler confidence in the solar industrySOLARAdjacent products50%20%10%15%0%5%MPUStorageEnergy monitoringWHAT PERCENTAGE OF YOUR SOLAR INSTALLATIONS ALSO INCLUDE THE FOLLOWING PRODUCTS?Solar is already installed with other products.Nearly half of installs include a type of monitoring.Installers say stor

61、age is attached a quarter of the time(median=15%).MPUs,roof upgrades,and EV chargers are all lower than in years past.25%30%45%40%35%EV chargerRoof upgradeEE servicesBGUHeat pumpsSmart thermostatsHPHW46%25%10%8%7%7%3%3%3%3%2021820172016-80%-20%-40%60%80%40%0%Much less confidentConfidence

62、has remained the sameSlightly less confidentSlightly more confidentMuch more confident20%Storage2024 ELECTRIFICATION CONTRACTOR SURVEY242024 Electrification Contractor SurveyEnergy storage systems installations are accelerating rapidly.On EnergySage,storage attachment rates reached 24%in the fourth

63、quarter of 2023,up from just 8%three years ago.But storage installations remain a nascent piece of contractors electrification puzzle.From the installer perspective,contractors are relatively new to installing batteries:Nearly half have installed storage for five years or less,while three-quarters h

64、ave installed storage for 10 years or less.From the consumer perspective,nearly 60%of storage adopters actively asked their installers for a battery.A big driver of this dynamic is that consumers primarily adopt energy storage for resiliency purposes(e.g.,emergency backup power in the event of an ou

65、tage),as opposed to for economic reasons,as is the case with solar.These data points indicate that the energy storage market is driven primarily by consumer pull over contractor push.Storage overviewAs the consumer market for batteries matures,we anticipate a few key trends based on the responses to

66、 this survey.First,we expect that storage will become more of an economic purchase for consumers,as evidenced by the fact that contractors in California plan to adapt to the Net Billing Tariff by selling only solar plus storage,responding to price signals from the new tariff.Second,while storage ins

67、tallations have historically been co-installed with solar,according to Lawrence Berkeley National Laboratorys Tracking the Sun report,nearly 80%of survey respondents offer retrofit storage installations on existing solar.Given there are five million solar adopters nationwide and a sub-10%battery att

68、achment rate historically,this indicates a huge opportunity to expand into the retrofit market in the coming years.As a result,90%of respondents say their installations will increase over the next three years,belying the role that energy storage will play in the energy transition.STORAGEUSNON-CACAST

69、ORAGE ATTACHMENT RATE BY QUARTER ON ENERGYSAGE80%40%20%0%60%Q3 20Q4 20Q1 21Q2 21Q3 21Q4 21Q1 22Q2 22Q3 22Q4 22Q1 23Q2 23Q3 23Q4 23Q1 252024 Electrification Contractor SurveyInstallers are new to storage half have only installed it for less than five years,while have less than 10 years experience.Ove

70、r 90%of respondents expect their annual installations to increase over the next three years.Average is 44%growth,median is 30%growth.Median for people who expect growth is 42%growth in installs.25%20%10%15%0%5%2510%HOW MANY YEARS YOU BEEN INSTALLING STORAGE?About your businessFuture business growth3

71、0%20%10%15%0%5%8%26%19%1%40-6060-8080%19%HOW DO YOU EXPECT ANNUAL ENERGY STORAGE INSTALLATIONS WILL CHANGE OVER THE NEXT THREE YEARS?30%50%20-400-20-20-0=20%6%STORAGE25%19%45%40%35%Percent increase in installationsPercent 262024 Electrification Contractor Survey56%of installers saw equipment costs r

72、ise in 2023.Those that say costs rose say they increased by an average of 11%.Those that say costs declined say they decreased by an average of 11%.Storage is also high margin,but has lower margins than solar.Costs of doing businessSTORAGEEquip cost change(%)Storage margins(%)Average-121Median0202 o

73、ut of 3 installers say its not important to match the inverter and battery manufacturer.Importance of integrated systems32%HOW IMPORTANT IS IT TO HAVE THE SAME MANUFACTURER FOR YOUR BATTERY AND INVERTER?32%26%40%0%20%60%100%80%Not at all importantSomewhat importantVery importantExtremely important11

74、%272024 Electrification Contractor SurveyWHAT IS THE PRIMARY REASON YOUR ESS CUSTOMERS PURCHASE STORAGE?Storage is still not a financial purchase.Costs are too high,so most people are buying it for resilience.Primary drivers of sales&lost sales60%70%40%50%20%30%0%10%Financial savings11%82%13%3%3%8%4

75、0%30%20%10%0%WHAT IS THE BIGGEST DRIVER OF LOST STORAGE SALES?50%70%Solar self-consumptionResilienceNeed more consumer educationNot enough incentives for energy storageBatteries are too expensive76%PermittingchallengesSTORAGEStorage adopters are proactively asking their installer for it.Installers s

76、ay 58%of storage shoppers proactively ask for it(median 51%).60%80%282024 Electrification Contractor SurveyMost installers are willing to offer retrofit storage to existing solar.Could be an artifact of the types of installers we reached with this survey.Installers still see the balance of installs

77、being AC-coupled more than DC-coupled,which indicates either paired with micros or retrofit.WHICH TYPES OF ENERGY STORAGE INSTALLATIONS DO YOU OFFER?Types of storage installs offeredAdjacent products50%20%10%15%0%5%MPUSolarEnergy monitoringWHAT PERCENTAGE OF YOUR SOLAR INSTALLATIONS ALSO INCLUDE THE

78、 FOLLOWING PRODUCTS?Storage is nearly always installed at the same time as solar.LBNL says 23%of storage installs were retrofits in 2022.MPUs are required 14%of the time.25%30%45%40%35%EV chargerRoof upgradeEE servicesBGUHeat pumpsSmart thermostatsHPHW86%47%14%7%7%6%2%3%3%STORAGE60%40%20%0%Non-batte

79、ry energy storageStandalone storageRetrofit storage on existing solarNew solar+storage100%80%47%13%8%77%97%Heat Pumps2024 ELECTRIFICATION CONTRACTOR SURVEY302024 Electrification Contractor SurveyTo our knowledge,this is one of the first surveys of its kind targeting heat pump contractors.With that i

80、n mind,the survey centered on two main research goals.The first aim was to benchmark what heat pump installations look like today:what type of installations contractors are performing,what equipment they are using,what types of HVAC systems they are replacing,and how consumers are paying for these p

81、roducts.The second major research goal was to compare and contrast the experience and mindset of heat pump contractors compared to solar installers.At a high level,todays heat pump installations are split relatively evenly between ducted and mini-split systems.Around half of installs are complete re

82、placements of fossil heating systems,and respondents indicate that about half of installs still require a backup heating element.For the most part,homeowners are paying for their heat pumps with cash purchases or through state-sponsored loan programs.At present,consumers drive most of the demand for

83、 heat pumps.Contractors report that 75%of heat pump installs are for consumers who proactively reach out to the contractor,and 50%are for homeowners who specifically ask for heat pumps.Heat pumps trends overviewHEAT PUMPSOverall,the heat pump market has several notable contrasts to the solar market:

84、Heat pump installers are much more confident that their industry will grow than solar installers are about their industry.15%of respondents anticipate installs will more than double in the next three years.From a demand generation perspective,85%of heat pump installers dont purchase leads,unlike in

85、solar,where that practice is common.And,importantly,contractors report that heat pump installations are a higher-margin business than solar is.But in some ways,the solar and heat pump markets are experiencing the same barriers to growth.For instance,survey respondents report that the most significan

86、t barrier to selling more heat pumps is cost:Theyre too expensive,and there arent enough incentives available.Another commonality is how quickly the industry is growing,as indicated by how many new contractors are entering the space.Theres a mix of very new and very established companies in the heat

87、 pump space,with a nearly identical percentage of respondents having been in business for over 20 years as have been for 5 years or less.As such,there are ample opportunities for contractors in the two industries to learn from each others experiences.COMPARED TO ONE YEAR AGO,HOW HAS YOUR CONFIDENCE

88、IN THE HEAT PUMP INDUSTRY CHANGED?Heat pumpsSolar80%0%100%60%40%20%-20%-40%-60%-80%Much less confidentConfidence has remained the sameSlightly less confidentSlightly more confidentMuch more 312024 Electrification Contractor SurveyTheres an interesting mix of new market entrants and incumbent HVAC co

89、mpanies in the space.The percentage of installers with less than 10 years and great than 15 years experience is nearly equal.Not a single heat pump contractor expects sales to decline.Average is 51%growth.15%expect annual installations to grow 100%or more.25%20%10%15%0%5%2518%HOW MANY YEARS HAVE YOU

90、 BEEN INSTALLING HEAT PUMPS?About your businessFuture business growth30%20%10%15%0%5%11%24%15%40-6060-8080%23%HOW DO YOU EXPECT ANNUAL HEAT PUMP INSTALLATIONS WILL CHANGE OVER THE NEXT THREE YEARS?30%20-400-2006%HEAT PUMPS25%21%322024 Electrification Contractor SurveyHEAT PUMPSFor heat pump installe

91、rs,heat pumps are the primary source of business.Half of installs still require a backup heating element.Almost half of installs are complete fossil replacements or more.Nearly even split between mini-splits(55%median)and centrally ducted(50%median).20%10%0%5%45%20%1%ASPH installation2.5%WHAT%OF YOU

92、R JOBS COME FROMTypes of installs100%75%0%25%WHAT%OF YOUR INSTALLS INCLUDE THE FOLLOWING30%50%40%20%5%Fossil fuel heat(Natural gas,oil,propane,installation)Conventional A/C installationConventional water heater installationHPWH installationOtherGSHP installation99.5%55.5%45.5%Main panel upgradeVaria

93、ble speed/inverterBack up heating elementComplete replacements of fossil50%25%332024 Electrification Contractor SurveyHeat pump contractors are generally more confident about the industry than solar installers are.COMPARED TO ONE YEAR AGO,HOW HAS YOUR CONFIDENCE IN THE HEAT PUMP INDUSTRY CHANGED?Con

94、fidenceHeat pumpsSolar80%0%HEAT PUMPS100%60%40%20%-20%-40%-60%-80%Much less confidentConfidence has remained the sameSlightly less confidentSlightly more confidentMuch more 342024 Electrification Contractor SurveySimilar to other electrification products,the main barrier to selling more heat pumps i

95、s that they are too expensive.Half of installs still require a backup heating element.WHAT IS THE PRIMARY BARRIER TO YOUR COMPANY SELLING MORE HEAT PUMPS SYSTEMS?Barriers to growing your businessToo expensiveInstallation expertiseNot enough incentivesConsumer educationComfort concernsReliability con

96、cerns20%25%5%10%15%0%Not a good fitSupply issuesHEAT PUMPS352024 Electrification Contractor SurveyInstallers say they recommend heat pumps half of the time.Recommend them due to the lower environmental impact and co-benefit of getting both AC&heating.In other words,installers arent recommending base

97、d on cost savings yet.Recommended installsHEAT PUMPSWhat are the main factors that cause you to recommend ASHP or GSHP?Lower impact on the environment than other optionsGetting air conditioning with ability to use heat pumps for heating in winterLower operating cost than other optionsGetting heat wi

98、th ability to use heat pumps for booling in summerBetter anticipated comfort than other optionsAesthetic advantage over other options When do you not recommend heat pumps for a customers heating and/or cooling needs?When home is insufficiently insulated/air sealedWhen anticipated operating cost for

99、heat pumps appears to be higher than for comparable fossil fuel system and/or conventional air conditioningWhen outdoor space is not available for external componentsWhen heat pumps would be the sole source of heat for the homeWhen initial cost of heat pumps is higher than for comparable fossil fuel

100、 systemWhen home has multiple small roomsI never recommend heat pumps to my 362024 Electrification Contractor SurveyMost heat pump installers(85%)do not purchase leads,in stark contrast to solar installers.75%of heat pump installs are customers who proactively reach out,and 50%specifically ask for h

101、eat pumps.Customer acquisition channelsACQUISITION CHANNELS:DO NOT USEACQUISITION CHANNELS:USE FREQUENTLYSolarHeat pumpsPartnershipsPurchased leadsOnlinemarketplaceplatformsDirect salesand advertisingReferralsDoor-to-doorResellersEvents20%0%10%90%30%80%70%60%50%40%20%0%10%90%30%80%70%60%50%40%Events

102、Purchased leadsOnlinemarketplaceplatformsDirect salesand advertisingReferralsDoor-to-doorResellersPartnershipsHEAT PUMPS100%SolarHeat 372024 Electrification Contractor SurveyCosts of doing businessThe share of wallet for heat pump installers compared to solar installers is remarkably similar.16%HEAT

103、 PUMP INSTALLER SHARE OF WALLETShare of wallet80%100%60%70%40%50%20%30%0%10%90%Heat pump installers5%16%7%36%15%6%8%13%37%21%HVAC contractors say heat pump costs have increased more than solar or storage.HPs are higher margin than solar.The cost of customer acquisition less than half the CAC for sol

104、ar.Costs of doing businessHVAC contractors say heat pumps are paid for with cash at a higher rate than solar is.Recently,70%of residential solar installs have been financed with a loan.How are they paid for?Equip cost change(%)Heat pump margins(%)CAC($)Average1535$605Median1533$250CashHELOC/home equ

105、ity loanLoan through installerPersonal home improvement loanUtility or state sponsored loan programOtherAverage57814183825Median605552013HEAT PUMPSSolar installers7%Net profitPermitting and interconnectionCustomer acquisitionOverheadInstall laborE382024 Electrification Contractor SurveyMitsubishi is

106、 the most frequently offered/installed heat pump brand at the moment.Otherwise,still a pretty open market.PLEASE SELECT THE THREE MOST COMMON HEAT PUMP BRANDS YOU USEEquipment brandsAdjacent products50%20%10%15%0%5%SolarEnergy monitoringThermostatsWHAT PERCENTAGE OF YOUR HEAT PUMP INSTALLATIONS ALSO

107、 INCLUDE THE FOLLOWING PRODUCTS?Energy efficiency&heat pump installs go hand in hand.Note:the%of times heat pumps are installed with solar is probably an artifact of having so many solar installers respond to the survey.25%30%45%40%35%EE servicesEV chargerMPUHPHWRoof upgradeStorageBGU47%41%9%9%40%30

108、%10%0%60%50%55%13%HEAT PUMPS20%28%28%24%24%14%10%10%10%40%28%12%8%8%MitsubishiFujitsuBoschLGAmerican StandardBryantLennoxCarrierDaikinElectrical Upgrades2024 ELECTRIFICATION CONTRACTOR SURVEY402024 Electrification Contractor SurveyIn addition to the big-ticket purchases,like solar,heat pumps,and an

109、electric vehicle(EV),a handful of smaller-ticket electrical upgrades act as enabling technologies for homeowners.In our survey,we asked contractors about two of these technologies and upgrades:EV chargers and main panel upgrades(MPUs).The results present a study in contrast.Main panels are old techn

110、ology that electricians have been installing for over a century,while EV chargers are novel technology whose adoption rates are skyrocketing in conjunction with accelerating EV adoption overall.As a result,contractors have much more experience installing MPUs than EV chargers.Similarly,where EVs off

111、er a highly visible,highly public piece of the electrification transition,upgrading a main panel is often an enabling technology of last resort if a homeowner cannot accommodate the products they want to install with their current main panel.Electrical upgrades overviewELECTRIC VEHICLESGiven that dy

112、namic,contractors are more bullish on their future EV charger sales than MPU sales:nine out of 10 installers anticipate theyll increase EV charger installations over the next three years,while only three in five installers feel the same about their MPU sales and installations.Importantly,the survey

113、results also help benchmark what EV charger and MPU installations look like today.Generally,EV chargers are primarily installed indoors,with an even split of hardwired and NEMA plug installations.Typically,the charger is installed 20-30 feet away from the homeowners main panel.The decision of the EV

114、 charger brand is slightly weighted towards the consumer.Interestingly,despite all the buzz around smart panels and controllable home energy management systems,contractors report that only 10%of the MPUs installed are controllable,on average.20%10%0%25HOW MANY YEARS HAVE YOU BEEN INSTALLING ELECTRIC

115、 VEHICLE SUPPLY EQUIPMENT(EVSES)?30%70%60%50%40%29%5%0%25%20%10%15%0%5%2518%HOW LONG HAVE YOU BEEN INSTALLING MAIN PANEL UPGRADES(MPUS)?30%18%412024 Electrification Contractor SurveyContractors are much newer to installing EV chargers.Nearly two thirds have fewer than 5 years of experience installin

116、g EV chargers.9 out of 10 installers anticipate EV charger installs will increase over the next three years.Median expected growth is 40%.15%expect annual installations to grow 100%or more.20%10%0%25HOW MANY YEARS HAVE YOU BEEN INSTALLING EVSES?About your businessFuture business growth30%20%10%15%0%

117、5%5%20%6%40-6060-8080%22%HOW DO YOU EXPECT ANNUAL EVSE INSTALLATIONS WILL CHANGE OVER THE NEXT THREE YEARS?30%20-400-20No change0%2%25%28%70%60%50%40%29%5%0%17%Contractors say EV charger pricing has remained steady.42%of installers say prices didnt change in 2023.Costs of doing businessEquip cost ch

118、ange(%)EVSE margins(%)Average225Median020ELECTRIC VEHICLES422024 Electrification Contractor SurveyFor the most part,installers are primarily installing EVs indoors.Types of installations43%27%ARE YOUR EVSE INSTALLATIONS PRIMARILY INDOOR OR OUTDOORARE YOUR EVSE INSTALLATIONS PRIMARILY HARDWIRED OR A

119、NEMA PLUG?13%32%15%16%15%13%16%20%10%0%30%50%40%Mostly indoorSlightly more indoorSplit 50/50Slighlty more outdoorMostly outdoorEV charger installs are nearly evenly split between hardwired and NEMA plug options.20%10%0%30%16%16%Mostly hardwiredSlightly more hardwiredSplit 50/50Slightly more NEMA plu

120、gsMostly NEMA plugsELECTRIC VEHICLES432024 Electrification Contractor SurveyMore than other products,EVSE may be a one off or installed with solar.The%of times EVSE installed with solar is probably an artifact of having so many solar installers respond to the survey.WHAT PERCENTAGE OF YOUR EVSE INST

121、ALLATIONS ALSO INCLUDE THE FOLLOWING PRODUCTSAdjacent productsThermostatsHPHWRoof upgradeHeat pumpsBGUMPU20%80%10%0%StorageEE servicesEnergy monitoringSolar70%60%50%40%30%ELECTRIC VEHICLESWHATS THE TYPICAL DISTANCE BETWEEN THE MAIN PANEL AND WHERE THE EV CHARGER IS INSTALLED(IN FEET)?29 feet,median

122、20 feetDO YOU SELECT THE BRAND OF LEVEL 2 EV CHARGER OR DOES THE CONSUMER?Split nearly 50/50,slightly more consumer choicesWHAT ARE THE MOST TYPICAL AMPERAGES OF MAIN PANELS YOU SEE?9 out of 10 say 200 ampsDO YOU USE ANY COLLARS OR OTHER TECHNOLOGICAL WORKAROUNDS TO REDUCE THE NEED FOR MAIN PANEL UP

123、GRADES/REDUCE ELECTRICAL WORK?55%/45%no Note:It seems some respondents interpreted this as what amperage of charger do you install,so lots of 32,40,and 50 amp answers too that are excluded from that 9/442024 Electrification Contractor SurveyEven if the brands and specific tech is new,contractors hav

124、e been installing main panels for many years.The percentage of installers with less than 10 years and great than 15 years experience is nearly equal.Three-fifths of installers anticipate MPU installs will increase over the next three years.Median expected increase of 25%for those expecting increases

125、.25%20%10%15%0%5%2518%HOW LONG HAVE YOU BEEN INSTALLING MPUS?About your businessFuture business growth30%20%10%15%0%5%1%26%12%40-6060-8080%27%HOW DO YOU EXPECT ANNUAL MPU INSTALLATIONS WILL CHANGE OVER THE NEXT THREE YEARS?30%20-400-20No change0%MAIN PANEL UPGRADES25%16%7 out of 10 installers say eq

126、uipment costs increased this year.The electrical work EVSE,MPUs,and even storage all has similar margins.Costs of doing businessEquip cost change(%)Storage margins(%)Average1121Median102012%6%18%452024 Electrification Contractor SurveyAt present,Eaton is the most popular brand of main panel installe

127、d.Only 10%of main panels installed are controllable(1%median).WHAT BRAND OF MPU DO YOU PRIMARILY USE?Types of installationsAdjacent products50%20%10%15%0%5%SolarEnergy monitoringThermostatsWHAT PERCENTAGE OF YOUR HEAT PUMP INSTALLATIONS ALSO INCLUDE THE FOLLOWING PRODUCTS?A large portion of MPU are

128、in conjunction with solar.Note:the%of times heat pumps are installed with solar is probably an artifact of having so many solar installers respond to the survey.25%30%45%40%35%EE servicesEV chargerHPHWRoof upgradeStorageBGU76%32%9%9%40%30%10%0%60%50%55%13%20%20%14%7%40%28%12%8%8%Schneider ElectricSp

129、anLevitonEatonHeat pumpsMAIN PANEL UPGRADESEnergySage is the largest online Marketplace for solar shopping in the U.S.Our data are trusted by buy-and sell-side investment organizations,academic researchers,government agencies,equipment manufacturers,financiers,and contractors nationwideUnique and ti

130、mely dataset you cant get anywhere else Quote data provides an indicator of the direction of the market three-six months before it appears in reported install/permit data No need to wait for permit records to be pulled:Quote data are ready to share the day after quotes are submittedThe EnergySage qu

131、ote dataset provides a leading indicator of trends on:Consumer demand for solar+storage Installer behavior(e.g.,equipment preferences&system sizes)Solar+storage pricing(turnkey installed price and$/W or$/kWh stored)In case you missed itIf youre interested in custom solar data reports or packages,ema

132、il us at to set up a consultation today.Why EnergySageAccess unparalleled insight into the residential solar market in the US through data packages built from real quotes submitted by real installers to real homeowners through the EnergySage platform.ENERGYSAGE INTELLearn MoreSolar&Storage Marketpla

133、ce Report 2023 Data from H1 2023 to H2 2023ENERGYSAGE INTELDownloadThank you to our supporters!EnergySage is the simplest,most trusted way to comparison shop and save on high-quality clean energy and energy-saving solutions including rooftop solar,energy storage,heat pumps,EV chargers,and community

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135、e for consumers,while serving as the conduit for clean energy companies and providers across the country to grow their business,reduce costs,and simplify their sales.For these reasons,leading organizations like National Grid,MassCEC,Boulder County,Intuit,Staples,and NCSUs DSIRE point their audiences to EnergySage to begin their clean energy transitions.Visit EnergySage for more information,and follow us on Facebook,Instagram,LinkedIn,X(Twitter),and YouTube.