Scam Alert: NSW Homeowners Warned of Rebates Scam
In the current economic climate, Aussies are always looking for ways to save on bills, expenses, and home upgrades. But NSW homeowners are being hit where it hurts with government rebate scams. The Hot Water Upgrade Incentive has led to dodgy businesses enticing customers with over-the-top discounts.
And now, good-natured NSW homeowners seeking better energy efficiency with heat pump hot water systems are finding themselves in cold water.
Heat pump rebate scams run rampant
Heat pump installations are booming in New South Wales. Those upgrading their hot water systems can get money back on the installation itself, and maybe even claim an energy bill rebate on their already reduced bill. This incentive is causing companies to flood social media ads with “$50 out-of-pocket” deals and money-back guarantees. But, like a lot of huge plumbing deals, they are simply too good to be true.
The companies are installing cheap, below-standard heat pumps at a hugely discounted rate and claim all the relevant rebates on your behalf. As soon as the plumber’s van leaves your street, the heat pump unit already faces issues.
Unit quality issues and poor installation cause empty pockets
Heat pumps are an innovative technology that is much more complex than traditional electric hot water systems. This means there are many opportunities for manufacturing and installation to go wrong – from cutting corners and rushing work to poor materials and inefficient components.
Substandard heat pump installations can cause the unit to revert to grid power to operate a backup element. This turns it into what is functionally an electric system and negates any energy savings – or potentially even increases expenses.
Different components also cause their own problems. An undersized motor runs overtime, causing a lot of noise and burnout in as little as a few weeks. Inefficient compressors slow recovery rates, leading to lots of cold showers and freezing sink taps. Cheap tempering valves, the component that regulates water temperature, wear out quickly with inconsistent water heating.
NSW continue to lose money and time from rebate scam
NSW families quickly notice excessive noise, chilly showers, surged power bills from peak-time usage, and the premature need for repairs. Contacting their installer about repairs, customers find that they do not provide those services but will follow through with their money-back guarantee. Customers may have their small fee back, but they’re left with a broken heat pump that will cost much more to repair or replace, no rebate to claim, and cold showers in the already freezing NSW winter.
Government rebate installations catch heat
This is not the first time government rebates have led to unsafe and poor installations. The Home Insulation Program came into action in 2009 and suddenly closed in 2010, after over 200 housefires were caused by insulation. When it comes to installing a new heat pump system, homeowners are urged to choose a proper heat pump specialist plumber before the energy-efficiency rebates meet a similar fate.
So, what should homeowners do? Avoid overly cheap pricing. Choose recognisable and reputable heat pump brands. Ask lots of questions about the model and why it’s the right solution for your home, what all the costs involved are, warranty requirements, and what their qualifications, experience, and licence numbers are. Research the business and its reviews. And of course, always read the fine print.
Queenslanders should also be on the lookout for these scams. With helpful incentives like the STC rebate regularly attracting heat pump installations, finding a reliable plumber in Brisbane or your local area is vital. If it sounds too good to be true, it probably is.
