Scotland's consumer watchdog to investigate green home energy market amid fears of scams

Scotland’s consumer watchdog has launched an investigation into safeguards in the green home heating market, amidst concern about “misleading claims, rogue traders and scams”.

Demand for green heating products like heat pumps, solar panels and insulation is expected to rise as part of the country’s transition to net zero.

The Government’s proposed Heat in Buildings Bill is likely to mean that 2.4 million homes in Scotland will need to convert to cleaner heating systems by the end of 2045.

Consumer Scotland, the nation’s statutory body for consumers, is investigating whether consumers entering the market for “clean” heating products have access to high quality sources of advice and information, and strong consumer protections.

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The Scottish Government has brought in new regulations to reach net-zero carbon emissions but the rules have sparked anger in some communities.

As part of the review, the body has issued a call for information across the sector to gather evidence on existing practices.

Following the investigation, Consumer Scotland will make recommendations to help deliver the necessary protections and confidence for consumers to decarbonise and improve their home energy efficiency.

Removing emissions from home heating is an essential part of the ongoing transition to net zero.

The Scottish Government is proposing legislation that sets new targets for delivery, with around 2.4 million homes needing to convert to cleaner heating systems by the end of 2045.

This will drive demand for green technologies such as heat pumps, solar panels and insulation creating an unprecedented market for these products.

Chief executive of Consumer Scotland Sam Ghibaldan said: “The transition to clean heating and decarbonised, energy efficient homes will result in major benefits for consumers.

“While many early adopters of low carbon and energy efficiency technology have had positive experiences, there are reports the sector doesn’t always enjoy optimal consumer confidence. That includes evidence of low consumer awareness, misleading claims, rogue traders and scams.

“Strong consumer demand for green technologies will be key to achieving Scotland’s net zero targets and that requires consumer confidence and incentives. As the pace of adoption increases consumers need to be protected and supported throughout the process.
  
“We are keen to hear the views of organisations and individuals from across the sector and beyond to help us fully understand the strengths and weaknesses of the current market.”

Chief officer at Trading Standards Scotland Fiona Richardson welcomed the investigation launch.

She said: “Although the transition to decarbonised and energy-efficient homes promises significant benefits for consumers in Scotland, our enforcement actions, advice, and campaigns have continued to focus on combating scams, product mis-selling, and rogue trading in the sector.

“In order to fulfil these targets in the years ahead, we must ensure that consumers are empowered to make safe and informed choices.

“We look forward to working with Consumer Scotland to seek positive outcomes for consumers in this vital market.”