How government and industry can protect homeowners from scams

At Snugg, we’re passionate about making homes more energy efficient. Upgrading insulation, installing solar panels and making other green improvements can reduce energy bills, make a home more comfortable and, crucially, reduce carbon emissions.

But it’s important not to get carried away. Not all energy efficiency measures are for everyone:

• If you live in a well-insulated home and your energy use is already low, installing a new heating system such as a heat pump might not result in significant benefits.
• If you’re more concerned about lowering your energy costs today, rather than over the years ahead, consider taking affordable steps to reduce your energy use before considering investing more into a new heating system.

Unfortunately, not all companies put the needs of homeowners first.

Rogue traders are scamming homeowners out of millions of pounds

A staggering 19 million people were targeted by home energy efficiency scams in 2021.¹ The finding, made by Citizens Advice, also showed that while over a quarter of people identified the scam, an estimated 5.2 million didn’t.

Already in 2023, one rogue trader was found guilty of scamming residents out of £1.5 million through a home energy retrofit company. The company was accused of falsely promising customers energy and cost savings, and claiming the cost would be funded by the government.

Scams can take various forms, including email, phone calls and texts. In some cases, pushy salespeople have spent hours at victims’ homes to pressure them into signing contracts.

The cost-of-living crisis has created the perfect environment for scammers who know that many homeowners are eager to improve their homes’ energy efficiency and reduce their energy bills.

Improving the system to prevent scammers

Rogue energy retrofit companies may deceive people by falsely promising financial benefits and energy savings. They may mislead people with claims that the work will be funded by the government. And they may pressure homeowners, especially the elderly and vulnerable, into signing overpriced contracts for unnecessary work.

But many of these rogue companies could be thwarted if the government and industry do a better job of making it more difficult for scammers to operate.

Here’s how this could this be done in practice:

• ‍Setting realistic expectations: As an industry, we spend a lot of time talking about the benefits of making a home more energy efficiency. But we have a collective responsibility to also make clear the limitations and suitability of energy efficiency measures. In the financial industry, the regulator requires companies to balance claims with potential risks. If the energy efficiency sector followed suit, homeowners may be less convinced by scammers making bold promises.
• ‍Certification requirements: Currently, anyone can set up an energy retrofit company. They don’t need training or experience, leaving the door wide open for scammers. In some industries, it’s a legal requirement to receive certification from a trades body before operating. Implementing a similar requirement for the energy retrofit sector would make it much more difficult for scammers to trade. ‍
• Raising public awareness: Scams happen across all industries, but some get more attention than others - we’re regularly reminded how to identify a scam email, but do we know what to look for when a rogue trader knocks at the door? Given the focus of the scam mentioned above, this is particularly important for older and more vulnerable groups.

Avoid scammers with these tips

Scammers make up a small percentage of traders, but they are out there. Here are a few tips to avoid them:

1. Be alert for rogue traders: If what they’re promising sounds too good to be true, it probably is. ‍
2. Get multiple quotes: As with any major purchase, it’s good to look around. As well as gauging the market, you’ll also be able to compare opinions - an outlier could be a scam. ‍
3. Check their certifications: Only installers that meet strict trading standards can register with TrustMark or MCS. If you can find them on those databases, you can trust them. ‍
4. Unsure? Just say no: If you’re at all unsure whether you should be going ahead with a particular installer, just say no. There are lots of great installers out there, and you’re better off saying no than risking picking a bad one.

Remember, making your home more energy efficient can be a great way to reduce your bills, feel more comfortable and cut your carbon emissions - but only if the improvement is suitable for your home and budget.

To find out which energy efficiency improvements are suitable for your needs, get your free energy improvement plan from Snugg.