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Solar energy scam affects everyday Australians

solar energy scam

Consumers are once again being targeted by fraudulent companies promising crazy discounts and claims that can’t be delivered.

A recent solar energy scam has gone around promising major markdowns in prices as the company  allegedly misleads customers by  masquerading as a more reputable seller of solar panels.

“LG Energy Solutions”, who made themselves out to be an unofficial reseller of of LG solar products, has been accused of scamming people by taking their money and not installing the purchased products.

Update on this news: LG Electronics Australia Pty Ltd has confirmed with Energy Matters that the mentioned supplier is totally unrelated to them and has never purchased stock from their accounts. See full clarification on footnote.

The company has now gone into liquidation as more bad blood surfaces from users online. LG has now taken the step to publicly disassociate themselves with the company through a statement on their website.

Watching out for a solar energy scam

Finding out about a scam after its too late could leave you with an inferior product, paying more than what you originally agreed to or worse; not getting the product paid for at all.

What can be done to protect your investment? Energy Matters has a free handy guide to help alert you as to what to look out for and what precautions to take to make sure you get what you paid for.

solar panels installation

Image: Pixabay

Your first point of call should be to do your research, compare all the parts you need, get quotes from reputable solar providers and beware of a pushy salesperson.

Consider all your options and inquire about the company’s history and any costs that may not be immediately obvious. We recommend to check if the selected company is a Clean Energy Council Approved Retailer, which can provide the extra peace of mind that you’ve made the right choice of selecting a retailer who is committed to superior quality and service.

What to consider

What is also important is how long the system will take to get installed and inquiring about how long your new systems warranty is. Reputable companies will also be able to offer a performance guarantee on your system.

If the worst does happen however you can contact Scam Watch which is spearheaded by the Australian Competition and Consumer Commission to report the situation.

Update: LG Australia has contacted Energy Matters to help clarify their position on this matter:

It has come to LG attention that a company trading as ‘LG Energy Solutions’ has been using LG branding and marketing material without the approval of LG Electronics Australia.

As a result, LG Electronics Australia promptly obtained orders from the Federal Circuit Court preventing ‘LG Energy Solutions’ from using LG branding and marketing materials. The Federal Circuit Court also ordered that LG Energy Solutions clearly inform consumers that they are in no way associated with LG Electronics Australia. LG Energy Solutions failed to comply with the court orders.

Unrelated to the court action, LG have been notified that ‘LG Energy Solutions’ has gone into liquidation last Monday. If customers have any queries regarding the liquidation or LG Energy Solutions more generally, please contact the liquidator, Mr Steven Kugel of The Insolvency Experts on (02) 8378 3777.

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