Should My HVAC Contracting Business Install Geothermal Systems?

Vertical Ground Source Heat Pump System Heating Home Geothermal Energy

Location:

Website:

Contact Email:

Contact Phone:

Company Description:

Industry Sector:

Services Offered:

Product Offered:

Verified Check:

Geographical Areas Serviced:

Back to Main Directory

Who knew that a nursery rhyme could teach us good business? Which rhyme? The one about an untenable balancing act:

Humpty Dumpty sat on a wall. Humpty Dumpty had a great fall. All the king’s horses and all the king’s men couldn’t put Humpty together again.

The HVAC business lesson? Assess your risks before you take on a challenge. Humpty didn’t. One business expert called the egg a “serial risk taker” whose lack of foresight about the wall and his defiance of the odds scrambled his enterprise for good.

Now, about your HVAC enterprise . . . What do you risk by adding geothermal installation to your line-up of services?

FINDING THE RIGHT BALANCE WITHOUT CRACKING

If making a list of pros and cons helps you decide, we’ll get you started on the pro side. Here are eight good business reasons for expanding your operation to include geothermal systems.

  1. Diversification of Services – Extreme air temperatures drive the demand for conventional HVAC services. Summer and winter see an uptick in work; spring and fall see a downturn. In contrast, geothermal heating and cooling relies on the earth’s stable and consistent temperature. It knows no season. The result? The demand for geothermal installations remains relatively consistent throughout the year.   
  2. Energy Cost Savings – Consumer interest in saving money is always high. Energy.gov reports that geothermal systems cut consumer energy bills up to 65%. The long-term energy cost savings makes geo an attractive investment for homeowners and businesses. 
  3. Tax Incentives – State/provincial, local, and federal tax incentives and rebates help today’s home and business owners afford this renewable energy. The current 30% federal tax credit made possible by the Inflation Reduction Act incentivizes homeowners to opt for geothermal heating and cooling.  
  4. Competitive Advantage – Offering geothermal installations can set your HVAC business apart from competitors who don’t provide this service. The result? You gain a competitive edge in the market . . . and the market is growing. Precision Business Insights valued the geothermal heating and cooling market at $9.5 billion in 2022. They project a growth rate of 7.5% between 2023 and 2029. 
  5. Higher Profit Margins – The specialized nature of geothermal installations means fewer competitors in the market. The demand for specialized skills can allow geothermal installers to command higher rates for their services.
  6. Long-Term Customer Relationships – Geothermal systems do require some maintenance and servicing. This provides opportunities for long-term customer relationships and recurring revenue.
  7. Energy Independence – Described as “inflation-proof,” geothermal systems reduce a property’s dependence on fossil fuels. They give homeowners greater energy security and insulation from fluctuating energy prices. 
  8. Environmental Responsibility – A growing segment of today’s consumers are mindful of the environment and the need for renewable energy. The high efficiency of geothermal systems leverages this appeal for “eco-friendly” solutions. 

By adding geothermal heating and cooling installations to your HVAC business, you can increase your revenue while you position your business as a forward-thinking and environmentally responsible service provider in the industry.

DON’T FORGET YOUR HELPERS

Oh, one more thing . . . the nursery rhyme tells us that Humpty had a network of helpers at his disposal, “all the king’s horses and all the king’s men.” IGSHPA’s membership of leading geothermal industry experts can help you too. 

Published
Categorized as Blogs