Scotland’s statutory body for consumers has launched an investigation into customer protections within a growing energy market amid a national push for homes transition to green energy by 2045.

Consumer Scotland is examining a range of issues impacting on customers shopping for green heating systems, including access to high-quality, accessible advice, strong protections, fair and affordable incentives and competitive and clear product choices.

The investigation will also shed light on pitfalls for buyers, potential scams and conflicting advice.

Emissions from home heating have been identified by the Scottish Government as an obstacle to national climate ambitions and proposed legislation in Holyrood would set new targets for delivery. If passed around 2.4 million homes in Scotland will need to convert to cleaner heating systems by the end of 2045.

This has sparked a growing demand for green technologies such as heat pumps, solar panels, and insulation. 

Consumer Scotland has raised concerns that amid unprecedented demand and a new and fast growing market, there is little knowledge or approved advice within the public domain.

In its investigation the statutory body, established in 2020 by the Scottish Parliament following the Consumer Scotland Act, will carry out a comprehensive review of the market from a consumer's perspective.

Chief Executive of Consumer Scotland Sam Ghibaldan believes that consumer protections and confidence will ultimately drive demand: “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.”

Following the investigation, Consumer Scotland, which was created to protect Scottish consumers from malpractice, scams, and misinformation, will make recommendations to Holyrood that will help deliver the necessary protections and confidence for customers.

The news comes following a Herald series on heat pumps which examined the myths, truths, and realities of running a home with clean energy. 

During the series Dr Nicholas Harrington, who is involved in research investigating the decarbonisation of the UK's domestic heating with the UK Collaborative Centre for Housing Evidence, wrote that there was a degree of uncertainty on the way to achieving net zero targets, and clarity had to be provided to consumers.

READ MORE: 

Heat pumps: Myths, truths and costs – find all the articles in the series here

Heat pumps clarity would help our obligations on route to net zero

Let there be light: how a tiny west coast island led the way in renewable energy

“On the consumer side, there are concerns about making considerable investments in a potentially unreliable and expensive piece of new technology," he explained.

"To a certain extent, the prevailing mood of ‘net zero uncertainty’ is appropriate given policymakers themselves are often conflicted about exactly how (or if) to legislate clean heat solutions across Scotland’s housing stock.

"It is not at all clear what borrowing, subsidy, or scheme arrangements are intended to support these obligations.

“In practice, the vast majority of homeowners will require a way to access capital, otherwise they simply cannot make the change.

“What remains is for the government to bring all of this hard-earned understanding together under one policy framework and engage in a meaningful way with business to break through what can only be described as (heat pump) market failure."

Trading Standards Scotland has welcomed the investigation launch from Consumer Scotland. Chief Officer, Fiona Richardson said it is vital to ‘empower’ the people who will be obligated to spend money on new technology.

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.”

A Scottish Government spokesperson said: “We welcome Consumer Scotland’s investigation. Scotland’s heat transition offers huge consumer benefits and significant commercial opportunities. However, it is important that consumers have confidence that work will be carried out to a high standard by reputable installers, represents good value for money and achieves the outcomes customers expect.

“We received more than 1700 responses to our consultation on proposals for a Heat in Buildings Bill. We are currently considering these before confirming next steps.

“Our policy proposals are designed to apply where affordable, fair and feasible - to make sure that any changes we may ask home and business owners to make are consistent with the Scottish Government’s commitment to a Just Transition.”