Avoiding energy scams
Learn how to avoid energy scheme scams. Find out your rights and what do to if you think you have been scammed, and how to report dodgy businesses.
What are government energy rebates, grants and schemes
Energy rebates and grants are government schemes designed to help households and businesses reduce their energy costs or make their homes and workplaces more energy efficient.
Depending on the government scheme, they can take different forms such as direct payments, refunds, discounts, or funding for energy upgrades.
Schemes:
- encourage energy savings or the use of renewable energy
- often involve partnerships with energy retailers or accredited installers
- customers usually don’t apply directly, instead, accredited suppliers or installers apply the discount or rebate on your behalf. The benefit is passed to you as a lower purchase and installation cost.
How dodgy energy businesses target consumers
Dodgy businesses may try to use government energy schemes to offer you false deals. They may do this to access your personal information or steal money.
Energy rebate scams and misleading deals are becoming more common, especially for:
- solar panel installations
- home battery storage
- energy-efficient home upgrades.
They may try to offer you a false deal by knocking on your door, by calling you over the phone or sending sales material through the mail.
What to look out for when shopping for energy schemes
You can use these tips as a checklist.
Know your rights
Under Australian Consumer Law, unsolicited sales must follow strict rules. These include:
- the salesperson clearly identifying themselves and who they represent
- a 10-day cooling-off period
- no pressure to pay deposits during this cooling-off period.
Think about your needs
Take your time to:
- understand your household energy needs
- compare quotes from different providers
- make a well-informed decision.
Don’t be tempted to agree to anything because of pressure tactics.
Beware of businesses that:
- knock on your door or call without permission
- use urgent phrases like “Register now” or “You’ll miss out”.
If you feel pressured:
- say no and hang up or close the door
- don’t sign anything if you’re unsure
- report suspicious behaviour and pushy businesses.
Check you’re eligible
Don’t rely on anyone else to tell you you’re eligible. Find the rebate being offered to you and read the eligibility criteria carefully.
Refer to:
- Service NSW for state-based rebates
- Australian Government website for national rebates.
Check the business is legitimate
Before signing up for an energy scheme, check the business offering it is legitimate. You can do this by:
- using ABN Lookup to check the business is registered. Make sure the results match the name supplied to you
- searching the business name online. Look for customer reviews and a website for the business. If they have a website, look to see if they have a physical address and contact information
- searching the business name on social media. If they have social media, see how long it has been active.
For companies selling energy-saving equipment such as solar panels or home batteries, use New Energy Tech consumer code to check they’re an approved seller. This means they meet consumer protection standards.
For electrical work, the installer must have a valid electrical contractor licence. Check it using Verify NSW.
Get everything in writing
Before agreeing to a deal, ask for a full written quote, including:
- the total cost, with equipment and labour costs listed separately
- government rebates clearly shown
- the full terms and conditions.
Read the terms and conditions of the sales contract before you sign anything. If you don’t understand the terms and conditions, seek independent legal advice.
Ask about warranties
Find out:
- what’s covered under warranty and for how long
- whether call-out fees or parts are included
- who to contact if something goes wrong.
Even after a warranty expires, you may still be protected under the consumer guarantees.
What to do if things go wrong
If you believe you’ve been misled, overcharged or scammed it’s important to act quickly.
If you’ve paid a business to install an energy-saving product you have the right to receive what was advertised or agreed to.
Under Australian Consumer Law, businesses must:
- supply the product you were promised, not a different model or brand without your consent
- make sure the product is fit for purpose, matches its description and is of acceptable quality.
What to do if the wrong product was installed
- Contact the business
Explain that the product installed isn’t what was advertised or quoted. Ask for the correct product to be installed, or a refund if that’s not possible. - Keep records
Save copies of the ad, quote, invoice, and any messages or emails between you and the business. - Get help if needed
If you can’t resolve the issue direct with the business, contact NSW Fair Trading for help. Fair Trading can help you understand your rights and may assist to resolve your complaint.
If your installation was part of an energy savings scheme, the product installed must meet scheme requirements. Installing a different product could affect your eligibility for the rebate or discount. Contact the scheme administrator or Fair Trading to check your options.
Energy-saving products must work properly and last for a reasonable time.
If your system or device stops working, you may be entitled to a repair, replacement or refund, depending on the issue.
- If the problem is minor, the business can choose to repair it.
- If the problem is major, for example, it stops working completely, can’t be fixed, or isn’t what you asked for, you can choose a replacement or refund.
- You may also be covered by a manufacturer’s warranty, but your consumer guarantees apply regardless of warranty terms.
Always contact the business first and give them the chance to fix the issue. If they don’t respond or refuse to help, contact NSW Fair Trading for advice and support.
If you’ve signed up for an energy rebate, grant or scheme that doesn’t seem legitimate, for example, you were promised government rebates that don’t exist, or the business has taken payment but not delivered the product or service, it’s important to act quickly.
Stop all contact with the business or person you suspect is a scammer. If you’ve shared personal or financial details, contact your bank or financial institution straight away to secure your accounts. Keep copies of any emails, contracts or receipts in case they’re needed for follow-up or investigation
If you think you’ve been scammed, you need to take steps to protect yourself and report the scam.
Follow the steps from ScamWatch on What to do if you’ve been scammed.
Read more about unfair contract terms and misleading or deceptive conduct.