One of the biggest challenges contractors face right now is that customers are hesitant to spend large chunks of money. The Pew Research Center has found that as of July 2026, 76% of Americans view the economy as fair or poor. There’s economic uncertainty in the air, and people are holding their checkbooks a little bit closer.
In addition, federal tax credits have expired, and California’s Home Electrification and Appliance Rebate (HEEHRA) program is fully reserved for single-family home owners, so customers are footing most of the costs themselves. In times like these, contractors have to take a more intentional approach when talking about electrification. Here are a few strategies to consider.
Focus on Immediate Outcomes
Most people make upgrades to their home based on emotion. Number-crunching still plays a major role, but homeowners generally care more about how electrification will make them feel than how good of an investment it is. If they can afford it and it will improve their life, they’ll be much more interested.
Focus on the emotional benefits that electrification provides right out of the gate:
- Comfort: Emphasize that electrification upgrades like heat pumps create more consistent indoor temperatures.
- Safety: Mention that replacing gas or oil appliances with electric ones removes emissions from the home and eliminates the chance of CO leaks.
- Sustainability: If the customer is interested in electrification for environmental reasons, lean into how these upgrades will improve their carbon footprint.
Explain That Electrification Can Be Done In Steps
Electrification can be an overwhelming change for customers. They may wish to eliminate their reliance on fossil fuels, but the cost of upgrades prevents them from doing everything all at once.
Offer them a solution. One of the main selling points of electrification is that it can be done in parts and as slowly as a customer needs. They can start with more affordable upgrades like an EV charger, transition to a heat pump in a few years, and then commit to solar when they feel more financially comfortable.
Emphasize Long-Term Value
There’s no sugarcoating the reality that electrification upgrades do not usually provide an immediate ROI. A 2024 heat pump installation case study by the U.S. Treasury showed a 7-year payback period.
Immediate utility bill savings can be a hard sell for customers. Spending tens of thousands of dollars in return for a slightly smaller monthly electric bill may not be enticing enough.
Instead, focus on the long term. When possible, give them an estimated time horizon for when their upgrade will have paid for itself. The Department of Energy reports that for solar, most homeowners will find an installation more attractive if the payback period is under 10 years. Don’t forget to explain that energy costs will continue to rise and investing in energy-efficient equipment and renewable energy helps not only hedge against ever-increasing utility bills, but also grants homeowners greater energy independence and resiliency.
Don’t Forget to Mention Local Utility Rebates
Many Californians have access to rebates from their utility providers. These can help ease the financial burden of electrification upgrades, so do your research about customers’ eligibility ahead of time and don’t forget to tell them what funding is available.
Lead With Financing
Total project costs often give customers sticker shock, especially if they’re already hesitant about electrification. While it’s important to be upfront about total costs, don’t wait to mention financing until after the customer has already shown resistance.
Lead with it. Show estimated monthly payments right after explaining total costs. It’s much easier for a customer to picture paying $300/month over a couple of years than $10,000 all at once.
Continue Building Relationships
Finally, make sure that you respect your customer’s decision if they don’t want (or are unable) to invest in electrification right now. If they’d rather continue repairing an old furnace instead of upgrading it to a heat pump, be there to perform that work.
Continue providing great service and building relationships, and that customer will remember you when they’re ready for their next upgrade.
How Joining Efficiency First California Can Help
Your customers may be more careful with how they spend money on electrification upgrades, but that doesn’t mean business is slowing down. Heat pump sales alone have outsold furnaces for the fourth straight year.
The clean energy and electrification industry is always in flux, and EFCA is here to support you throughout it all. We are the voice of clean energy contractors in California, helping you navigate the industry’s changes and challenges. As your advocate, we:
- Keep you informed on legislative changes that affect your business.
- Play a direct role in shaping state legislation that benefits you.
- Provide resources, networking opportunities, online support, and discounts.
