On the other hand though, while it’s not quite savings passed on to the consumer, it is encouraging the installers to prioritize that technology over other less efficient alternatives. So I suppose it depends on what the end goal is.
If you have an installer selling heat pumps and regular heaters, they’re gonna be much more incentivized to recommend you a heat pump if they get an extra, say, $1,000 in subsidies off marking it up compared to a regular heating system.
But without price controls or very strong competition, it won’t end up actually making things cheaper for consumers.
On the other hand though, while it’s not quite savings passed on to the consumer, it is encouraging the installers to prioritize that technology over other less efficient alternatives. So I suppose it depends on what the end goal is.
That part is true.
If you have an installer selling heat pumps and regular heaters, they’re gonna be much more incentivized to recommend you a heat pump if they get an extra, say, $1,000 in subsidies off marking it up compared to a regular heating system.
But without price controls or very strong competition, it won’t end up actually making things cheaper for consumers.