A Free Public Service
SCAMS BULLETIN Host Jay White is an iactive attorney in San Mateo County, California.
November 26, 2022
ENERGY SAVING SCAMS
Attribution scambuster.org
Who doesn’t want to score energy savings these days? Not only are utility bills climbing, but we’re also increasingly aware of the environmental cost of using our precious natural resources.
Scammers and their misleading sales spiels, are tricking people into handing over their cash for dubious products and services. They claim to deliver savings and make us more eco-friendly.
A big challenge for consumers is usually a lack of technical savvy to check out these claims. But, if you don’t do your research, you may to get conned into paying.
Here are three of the common energy savings scams you may encounter.
INSULATION SCAMS
Most of us know that properly insulating the walls and roof spaces in our homes can significantly reduce heat loss. But it’s difficult to know what works and how much you’ll likely save.
They may deceptively inflate the insulating power (or “R-value” in tech-speak) of their coating in their marketing materials. They may claim a special wall paint will reduce heat loss.
With attic insulation, scammers may exaggerate the insulation properties of their products or fail to install the optimum amount of fiberglass or foam. In some cases, they even use a technique known as “fluffing” in which the material is “fluffed up” to appear thicker than it really is.
REPLACEMENT WINDOWS
Spammers are currently bombarding consumers with ads for double- and triple-pane windows, which they say will result in significant noise and heat insulation.
While it’s true that properly manufactured multi-pane windows can achieve savings, once again, scammers make outrageous claims about the R-value of their products, without providing any supporting evidence.
Often, these windows are sold via spam or using high-pressure door-to-door and telesales tactics, including too-good-to-be-true prices that give them a foot in the door. These turn out to be only for basic, standard-size frames – and you discover your windows will cost a lot more.
They may also offer suspect short-term warranties with all sorts of get-out clauses.
PLUG-IN ENERGY SAVING DEVICES
Social media is full of stories about energy-saving devices developed by inventors that supposedly the big utility companies are trying to suppress.
You simply connect them to a power outlet to produce savings of up to 60 percent in energy use, they claim.
Promoters may use charts and statistics that seem to back up their energy-saving claims. But, in general these are false or, at best, misleading.
Of course, there are some devices that can help you save energy, most notably “smart” thermostats. These are often available at a substantial discount from your utility supplier. But scammers may sell them at an inflated price and claim the discount for themselves.
SOLAR PANELS AND MORE
The tricks we’ve listed aren’t the only energy-saving scams. The current hot topic relates to solar power scams, which we plan to cover in depth in a later issue.
Others relate to unverifiable claims about energy usage in domestic appliances. Generally, the numbers you see on those yellow stickers in the store are accurate and comply with regulations – but beware that salesperson’s exaggeration about how much you’ll save.
HOW TO AVOID AN ENERGY-SAVING SCAM
Here are 10 commonsense tips to avoid being hoodwinked by these scammers.
*Learn and understand a little about R-values. What Is Insulation R Value?
*Ask for evidence to support any money-saving claims.
*Contact your utility providers for information on devices and tactics to reduce your consumption. Don’t rely on salespeople.
*Seek customer references from contractors and others about their work and products.
*Read contracts including all the small print. And check warranties, especially for length of coverage and exclusions.
*Never sign a contract under pressure, especially with claims that the offer is only available right now. In fact, if you feel pressured to sign, that should be enough to make you distrust a salesperson.
*Beware of imposters claiming to be from utility companies or energy-efficiency experts such as the government’s EnergyStar service. Don’t let them into your home without thoroughly checking them out.
*Don’t provide confidential financial information over the phone or to a doorstep visitor, again until you’ve verified their identity.
*Get at least two competitive bids for any type of insulation or replacement windows you’re considering.
*If you’re thinking of buying and using a device that claims to cut electricity consumption, research it on the Internet to see what others are saying. Be skeptical – mostly, they don’t work.
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