HVAC Electrification Hey guys in this video we're going to talk about something that's called HVAC Electrification. and I think if you were to use that word 10 20 years ago we probably would have thought you were making up something. but today it's a term that we're hearing use more and more and it's actually something that we're seeing pushed in our industry. We're going to go over some of the ways it's being pushed, but if you stick around to the end I'm going to go over some of the reasons why we're seeing people push for this and whether that's for political reasons or other reasons we will talk about that. But let's talk about some of the things we're seeing some of the things that they are doing to push for this more electrification. And basically when we say electrification we are saying that there are is a push for products or equipment HVAC products that normally would not have been using electricity to now they want them to be using electricity and a lot of cases exclusively. So an example of that my might be if you live up north and you currently use a fossil fuel burning furnace or some sort of heat source that uses fuel to heat your home, they are pushing for that to be more electrical from now on for you to swap that equipment for something that uses electricity instead of natural gas or propane. And so some of the things we're starting to see in the industry is things like fossil fuel prices are going up and you might say well Josh all things are going up but I think what you're going to see even more in the future as they continue to push for this. You're going to see either incentives or rebates that we're going to talk about in just a second, but just things that are for more for electrical things. You're not going to have that option for fossil fuel burning appliances. And another thing we're seeing is a lot of these products. Whether it's a furnace or some sort of piece of equipment that uses those fossil fuels, a lot of them are being outlawed. Maybe that's not quite the verbiage to use, but ultimately states are making laws where they're saying hey, you are no longer going to be able to sell these products in our state. Of course. We did a video recently where we talked about how the state of California was the first state to say no gas furnaces in our state anymore. It remains to be seen if other states are going to follow suit with that. It does kind of give you an idea of where these things are going. now that specific law is not necessarily saying hey, you have to go electric, but they're saying that there are certain appliances that there's no longer going to be an option in our state. so it's kind of the writing on the wall, right. Another we just touched on are rebates and incentives to go electric. Whether that's an actual incentive or rebate or tax incentive to say yes, Go Electric. Not that necessarily, but they may say oh well. you need to go with a higher end unit or a more efficient unit. and in those cases then maybe the options become limited and you go electric anyway. but ultimately just having some sort of monetary value attached to. hey, Go Electric. Go Heat Pump Go. Some sort of system that uses electricity over another And then finally I Would say the options have gone way up for electrical years ago when it came to straight Electric Systems Here in Virginia where I'm at, we see a lot of them. We see heat pumps and Air Handlers and things like that being sold. but just 10 20 30 years ago it was sort of. if you went North Key pumps had a bad name because they were useless, they didn't provide enough heat, and people needed to have some sort of fossil fuel backup anyway. And then if you went further south, Heat Pump still had a bad name because they were quote unquote. Useless folks would then go straight AC So it was almost like you had to be in one of those middle States for it to even make sense. But as time has gone on, we're seeing more and more folks use heat pumps as an option and also more and more options themselves. So you see Brands and manufacturers having multiple options that they've never had before. There's many splits and the split systems, but it's all these options with inverters and all these creative different types of systems that they've come out with, the technology and so on. They now have all these Brands making these inverter systems that don't necessarily have to be high-end communicating systems right? The point is, there's just a lot more options now that we're just never there before and they're pushing for these. So let's talk about why they're pushing for the stuff or some of the reasons they're saying why. I'll say the best reason for last, but I think some of these might come off as sounding political. That is not my goal. I'm not saying they're right or wrong, I'm just going over some of the arguments if you will. One of those being the climate change. They are saying that we want to get rid of these fossil fueling anything that has a carbon footprint. We want to get rid of that. A lot of cases the argument against that would be when you're getting rid of, say, a natural gas burning furnace where they used to be years ago, even folks that they're on the side that's pushing for climate change policies and so on. Those were the folks that were on the side of going natural gas right because it's such a clean burning fuel in comparison to a lot of others we're seeing in some of these places where they're saying we need to get rid of the natural gas burning furnaces and go electric. but then the options to create that electricity are not as clean as the natural gas and that's kind of the argument against that. So until they continue to come out with these ways of creating electricity that does have a more positive effect on the environment, getting rid of these fossil fuel burning appliances may be a premature I Don't know I Mean it's just kind of the argument that they make the flips out of that too, is what we're seeing in California Where they ban these furnaces. Is folks saying that the power grid is already having a problem keeping up with the demand. Currently they're talking about certain parts of the state where they are telling Tesla owners or electric car owners to only charge their car during certain hours or to avoid other hours because of the strain that it puts on the power grid. That's another argument being made that we're maybe jumping the gun on this a little bit. you're trying to get out there and move everyone to electricity only, but then the power grid itself is having a hard time keeping up with that. I Think that that may get a little better as time goes on just because they are going more efficient. So they're not just going electric, but they're also going with high-end inverter systems and the more they do that or the better that part will be. obviously. And then finally, another big argument with a lot of folks on one particular side is they think that there's a matter of control here so they're trying to push everyone into one corner so they can say whether or not you can even have it. I Can tell you that here locally, one of the utility companies has a way for them to connect a device to the air conditioning or heat pumps outside and be able to control that unit based on the demand. So if they get really into the Dead Heat Of Summer This equipment can go through and turn off some of these systems to help alleviate some of that strain on the power grid. and so that just concerns a lot of folks. I've heard that argument made that that I've had older customers that will say look I don't want Wi-Fi in my house I don't want Geo fencing and all these types of things that we're seeing because of big brother or some sort of control that could be put on them that if no one can see what they're doing or can have access to see what they're doing with their heating and air system then they wouldn't be able to control it I'm not trying to get all conspiracy on you, but that is one argument that's being made, especially as they continue to come out with these softwares that are using the cloud and so on. A lot of Manufacturers coming out with capabilities of that I would argue that they do have that capability of seeing it. We've seen it with other companies already like Google and Facebook and all that where if nothing else, monitor your data, see when you're using your system, how often you're using it, see what temperature you're keeping it at, and things like that, so they can use that data for whatever it is they use it for, right? So maybe they're not necessarily in control of your system and turning it off when you don't want it, but they are at least monitoring that data and making decisions based on that as well. so it's just something to be aware of. It's definitely an argument that's been made. Ultimately, I said I would save the best for last. The number one reason: I Think that we see a lot of these: Reasons I'm not saying it's the top dog. only reason I would say that it is a part of the conversation in a lot of cases and that is money. We see a lot of incentives and a lot of the companies and a lot of politicians having lunch with manufacturers and CEOs and things like that. You can't tell me that those things aren't happening because we all know that they are. That's why there are lobbyists and a lot of the other things that we see out there campaign contributors and things like that. It's always about money, so if certain things are getting done in a lot of cases, somebody is probably profiting from that. Unfortunately, that's the way it is a lot of cases. So anyway, it's kind of a controversial topic, but it is what it is. I mean we are seeing the industry right now push for electrification in the HVAC industry and like it or not, that's what they're doing. They're pushing for that. So let me know your thoughts. Comment down below: I'd Love to hear them good or bad one way or the other. I Think that we will probably see more and more of this. only time will tell you might catch this video in the future and tell me I was crazy I Don't think that's gonna happen. We're I'm basically just reporting what I'm seeing here with this whole thing. Anyway, let me know your thoughts. Thanks for watching. Hit that subscribe button. we'll see you next time.