As the owner of Royal River Heat Pumps, I have been fortunate enough to have built a prosperous business from the philosophy of installing and repairing just one brand of heating and cooling system – Mitsubishi Electric heat pumps.
I founded Freeport, Maine-based Royal River Heat Pumps in 2013 after the owner of the HVAC company I previously worked for told me to stop selling all-climate heat pumps in favor of conventional fossil fuel-burning HVAC systems. During this watershed moment, I put in my two weeks’ notice and started my own heat pump-only company.
Eleven years later, my 56-employee small business is thriving, with year-over-year growth at about 20% annually. In that time, the company went from one service truck to 26.
In 2023 alone, Royal River’s 36 technicians installed more than 1,000 outdoor heat pump units in Maine. Other accomplishments during the installations included using:
- 92,189 feet of 1/4-inch copper tubing − equivalent to 17.46 miles
- 69,221 feet of 3/8-inch copper tubing − slightly more than 13 miles
- 25,000 feet of corrugated drainage tubing − equivalent to 4.8 miles.
Every year, I exceed business projections and profitability goals by installing the most energy-efficient and lucrative product I know. After being in the HVAC industry for nearly 40 years, I know heat pumps.
One system to simplify business and build expertise
There are several reasons Royal River Heat Pumps sells one manufacturer’s products exclusively. I believe the heat pumps we install and repair are:
- more energy-efficient and climate-friendly than others and definitely preferable to conventional systems in those areas
- highly cost-effective because they are so efficient
- able to adequately heat and cool indoor spaces even in Maine’s extreme temperatures.
Plus, the entire 36-technician team gets specific training from our heat pump manufacturer, enabling us to be thoroughly trained and knowledgeable about installing and repairing heat pump systems.
The real magic is that I only need to stock our vans with equipment to install one type of system. We don’t need oil burner ignitions, nozzles, thermostats and other parts for conventional HVAC systems because we install and service heat pumps only.
Being singularly focused has enabled us to become one of two companies nationwide to be honored for being in the METUS Diamond Elite Technician program, the provider’s top distinction.
Although I could try to expand the business’s service offerings deeper into the electrification space by installing heat pump water heaters, air-to-air heat recovery ventilators (HVRs) or EV chargers, for example, I stand by my goal of being a heat pump-exclusive expert.
We used to sell heat pump water heaters, which are extremely popular in Maine. But we stopped because I want for me and the entire team to install and repair heat pumps so we can be the best at one thing, not good at a bunch of things.
In fact, we’ve been asked to beta test some newer heat pump products. I have never seen or heard of that kind of relationship between a contractor and manufacturer. It’s quite something to be involved with cutting-edge HVAC technology by going into the field and testing it.
Busting misconceptions by educating customers on heat pump benefits
Although Royal River Heat Pumps does not sell and install conventional HVAC systems, I’m baffled that so many contractors buy into the misconception that heat pumps only work in warmer climates. These myths are often amplified by companies selling fossil fuel products.
Our team does plenty of myth-busting about climate-friendly heat pump technology. In doing so, we reassure potential customers that all-climate heat pumps are nothing like their 1970s predecessors and adequately heat and cool spaces whether in New Mexico or Maine. Certain systems can provide up to 100% heating capacity, even when temperatures plummet to -5⁰ F – all while saving between 40% to 60% of what their energy bills would be with conventional HVAC units. We’re the most northeastern state in the country, still getting snow in April, and yet my 1850’s farmhouse has not burned fossil fuels in 17 years.
Maine also lacks a robust natural gas infrastructure in many parts of the state, including the Casco Bay Islands. Residents of these islands off the coast of Portland, Maine, pay a dollar more for a gallon of oil or propane than those on the mainland. Therefore, Royal River Heat Pumps has a thriving business on the Casco Bay Islands as homeowners and businesses look for more cost-effective solutions.
Since the Inflation Reduction Act (IRA) of 2022 was enacted, we also encourage eligible residents to take advantage of the incentives the legislation has to offer, such as claiming up to $2,000 per year off their taxes. Further, the Efficiency Maine Trust provides rebates and incentives to the residential and commercial sectors for energy improvements like all-climate heat pump solutions and recently received approximately $15 million in funds to expand its initiatives.
Go with the fossil fuel-free flow and watch business grow
The only downside about working solely with heat pumps is that I sometime lose a technician who also wants to learn about installation and service of traditional fossil fuel-burning HVAC systems. However, this is rare as most see the benefits of honing their heat pump system expertise.
In fact, between climate change, decarbonization efforts and the nation working toward lowering its carbon footprints, more HVAC business owners should consider transitioning to a heat pump-only model, even if they start with just one team of technicians at a time.
Every level of government is talking about strategic electrification, with all-electric heat pumps becoming a larger share of the conversation. Homeowners and commercial building owners are asking for them as they try to lower their carbon footprint and take advantage of government incentives. Demand for heat pumps will only intensify.
A barrier some contractors have nationwide is they are too tied to their existing conventional HVAC system customer base and are afraid to change by adding energy-efficient heat pumps. I urge each of them to start with one vehicle, train one crew − even if it means rebranding the company a bit − and let that specialized team offer just heat pumps. Become the expert in your area and watch how rapidly that one truck becomes 10.
With over 35 years’ experience and training in the HVAC industry, Scott Libby, Royal River Heat Pumps founder and owner, decided to create a company where he would want to work. Today his heat pump installation company meets his high standards of quality, integrity and community, all while needing no emergency on call staff and shutting down for 10 days between Christmas and New Year’s. 207-400-4065 or [email protected].