Heading into 2022 I am focused on learning more about the HVAC landscape.

I am inspired to learn more about the overall market as I am seeking to apply lessons learned from the European market to the United States market. When it comes to green heating & cooling solutions Scandinavian countries are leaders and the United States is the laggard.

The 1-2 punch of governments outlawing competitive alternatives & subsidizing consumer purchases is a dream for manufactures of heat pumps**. [This is a key lesson learned when studying NIBE](https://www.youtube.com/watch?v=CFOQQqCEGyo&t=209s&ab_channel=Alpha-Bets),** a Swedish company up more than 1,900% the last decade as they undoubtedly benefited from this exact 1-2 punch.

The United States is just beginning their own decarbonization effort. [New York just banned gas heat](https://www.nytimes.com/2021/12/15/nyregion/nyc-gas-stove-heat-ban.html) & there are relatively new [federal tax credits to encourage](https://geothermal.climatemaster.com/tax-credit/) adoption of green solutions.

HVAC companies aren't positioned to JUST benefit from the transition to green heating & cooling by selling more heat pumps. There is actually a laundry list of reasons to be interested in HVAC companies.

- They can be an ESG fund darling. Just like how every tech ETF needed FAANG, it's reasonable to say that most ESG funds will include HVAC companies.
- They benefit from the housing shortage. New housing starts is an leading indicator of demand their products.
- Work from home; if you no longer leave the house 8-10 hours a day that translates to more wear and tear on your HVAC system, speeding up replacement cycles.
- Global tailwinds include the need for air conditioning (air conditioners are actually pretty bad for the environment so perhaps that harms their  ESG case)
- Cold chain demand. Cold chains entered the lexicon with Covid vaccine shipments but demand for refrigerated trucks increases as more people order groceries online.
- Smart devices may allow them to create more recurring revenue. If your HVAC system is smart and tells you when your air filter needs to be replaced then why can't the HVAC companies offer filters as a service to automatically mail you a new filter?
- New product adoption. It appears that Covid-19 created a structural change where there is an elevated concern about air quality. HVAC companies not only sell specialized air filters but are introducing new air purification devices for the home.
![](https://cdn.commonstock.com/7eaab090e6022ccc8b3cc43327c6042ea66b2152446e85b0abae4c1e227ec3c6-1271x579.png)

Since geothermal systems are the most efficient heating and cooling units available, the United States federal government has enacted a 26% federal geothermal tax credit with no upper limit.

https://geothermal.climatemaster.com/tax-credit/

What Is The 2021 Geothermal Tax Credit? - ClimateMaster Geothermal HVAC

New York will become the nation’s largest city to enact a ban on gas heat and stoves in new buildings. It’s a major step away from fossil fuels that is expected to influence wider markets.

https://www.nytimes.com/2021/12/15/nyregion/nyc-gas-stove-heat-ban.html

N.Y.C.’s Gas Ban Takes Fight Against Climate Change to the Kitchen

What should you know about Nibe if you're considering investing in the company?1) Incremental EBITDA Margin2) Geographic breakdown. The Nordic region has pre...

https://www.youtube.com/watch?v=CFOQQqCEGyo&t=209s&ab_channel=Alpha-Bets

Nibe Investment Discussion (OTCMKTS: NDRBF)

My Watchlist - HVAC Companies

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Verified Member

Pat Connolly

Portfolio is effectively the same as last month… ![](https://cdn.commonstock.com/05e5955ee1470f33688376ea2637d0c66bdb12cb17135e61aeca6173b7cc5b44-1200x600.png)

This member connected a brokerage account and is sharing trades and portfolio performance with the community. 

Public Portfolio

Gunnar Stahl

Well I guess we got ourselves a Black Friday discount on the stock market! 

It’s starting to look like the market is going to rally this Christmas!

Still debating on whether I should start buying again or hold off till the next administration as the current one has their eyes set on destroying the economy….