Higher First Cost
The upfront cost of a HPWH is higher than for more traditional options. Incentives of $500 and greater are important, but the timing and delivery method of the incentives are more central to success than the exact dollar amount. The single most common and costly mistake that programs make is treating HPWHs like any other efficient appliance assuming that an incentive alone will be sufficient to increase sales and bring program results.
More than incentives are needed, because the customer journey to purchase a water heater is unlike the process of selecting appliances such as clothes dryers or refrigerators. It frequently involves a plumbing contractor who, in some cases, might actively steer customers away from the technology, and it typically takes place only when the previous water heater has failed, with most homeowners seeking the same or next-day emergency replacement of whatever the plumber recommends as a comparable replacement. This emergency replacement timeline gives consumers little time to consider a HPWH or understand the benefits. Plus, contractors are typically most comfortable installing the water heaters they are familiar with and have on hand.