National action needed to protect consumers in Scotland’s green heating transition

Investigation recommends key actions for governments, regulators and industry.

Co-ordinated action across the Scottish and UK governments, regulators, local authorities and industry is required to protect consumers in the transition to greener home heating.

Today Consumer Scotland publishes an investigation report into consumer protections in the insulation and low-carbon home heating sector, which includes products such as heat pumps, insulation, electric heating systems and heat networks.

An essential part of the ongoing transition to net zero is removing emissions from buildings, which are currently responsible for around 20% of Scotland’s total emissions.

Over two million homes in Scotland will need to move to low or zero-emissions heating by the end of 2045 to meet Scotland’s legal commitment to achieving net zero.

To succeed, this will require the mass adoption of low-carbon heating systems, but current evidence suggests consumer confidence and overall uptake is lagging as scams, misleading marketing, rogue trading and upfront costs continue to hamper the sector.

Meeting these targets will also require considerable improvements to home insulation.

Consumer Scotland’s recommendations include:

  • stronger regulation and protection for consumers by ensuring relevant enforcement bodies are appropriately resourced to better tackle rogue trading and scams
  • Scottish Government and UK Government to introduce mandatory accreditation standards for all traders in the sector to increase consumer confidence
  • UK Government to consider simplifying and consolidating the roles of standards bodies, codes and certification systems across all insulation and low-carbon heating technologies
  • introduction of a streamlined, accessible, and consistent complaints and redress system to protect all consumers
  • a review of existing financial support to ensure consumers who want to install energy efficiency and low-carbon heating products are not deterred by high upfront costs
  • national campaigns to engage consumers in the options and benefits of low carbon home heating heating systems and insulation
  • information sharing between standards and enforcement bodies to improve consumer protection

Chief Executive of Consumer Scotland Sam Ghibaldan said:

“The transition to net zero is one of the defining challenges of modern times. In Scotland, changing how we heat our homes is key to meeting our climate commitments.

“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.

“For many households, this currently means navigating a complex and unfamiliar sector often at significant cost. This journey must be made simpler, safer, and fairer.

“Our recommendations will help ensure consumers are empowered, protected, and supported through every stage of the transition, from initial decisions to installation protections and action to resolve complaints.

“Success will depend on coordinated action from governments, regulators, industry and consumer bodies with the benefits including lower emissions, reduced fuel poverty, and warmer, more efficient homes.”

Background

Investigation: Converting Scotland's home heating

Consumer Scotland is the statutory body for consumers in Scotland which was established by the Consumer Scotland Act 2020.

Under the Act Consumer Scotland may undertake investigations into sectors or practices which it considers cause, or may cause, harm to consumers.