Homeowners furious over solar panels rip-off after company goes out of business

Furious homeowners fear they have lost hundreds of pounds to a solar energy company that has gone out  of business.

Money Mail has received dozens of emails and letters from angry readers who paid 500 each to Energy Saving Group to have solar panels fitted. All complain they have received neither panels nor cash refunds.

Customers say ESG had promised to slash their fuel bills if they had the solar panels installed.

They were told their homes would benefit from the solar energy generated, while the firm would pocket a government subsidy, called the feed-in tariff, which is paid for extra energy generated and sold back to the grid. This promised payments of 43.3p per kWh of energy generated and sold back. Last month, the tariff was slashed to 21p.

This type of offer is not unusual — and is commonly known as a ‘rent-a-roof’ scheme.

But fears are growing that thousands of homeowners across Britain may have lost hundreds of pounds after being enticed by solar panel salesmen.

Money Mail has come across dozens of cases where ESG customers have had to wait for months for panels to be fitted after making payments. In a letter sent in August, many who had requested refunds were told ESG was unable to pay back money to its thousands of customers all at once, but that they would be contacted when it was their turn.

However, customers say emails and telephone calls to the address ESG uses in Redditch, Worcs, have gone unanswered. Some who contacted ESG in December have received letters telling them the firm has now gone out of business.

And Money Mail can reveal two of the directors of Energy Saving Improvements Limited, which trades as Energy Saving Group, are running another energy sales company called Energy Reduction Surveying Limited.

They are Steven Dickson, 33, who gives his address for both companies as Bromsgrove, Worcs; and James Manley, 34, from Hockley, Solihull. According to files lodged at Companies House, Energy Reduction Surveying Limited is registered at the Business Centre in Edward Street, Redditch.

The company trades under the name Energy Reduction UK. ESG is registered in Billesley, Birmingham.

When Money Mail called Energy Reduction UK, it said it was taking orders for solar panels, which it would install free or for 199.

Many of the people who have lost money with ESG are pensioners on limited incomes who were persuaded to order the panels by door-to-door salesmen. Others followed up adverts in local newspapers. The customers left out of pocket include 74-year-old Peter Conyers and his wife Shirley, 65, from Norwich, who ordered their panels just under a year ago.

The couple, who rely on just one state pension between them as their only income, paid 500 for panels after seeing a newspaper advert.

Mr Conyers, a former sheet metal worker, says: ‘We waited four weeks and then six weeks, but there was always another excuse from ESG about why the panels couldn’t be fitted. We really can’t afford to lose this money. We only paid it because we thought there would be a saving in the long term.’

Consumer groups have warned of vulnerable people being scammed by promises that solar energy could save them hundreds of pounds. Campaign group Consumer Focus warns that people who want to fit solar panels should order them only from companies registered under the REAL Assurance Scheme.

They should also only sign a contract certified under the Microgeneration Certification Scheme .

Always make sure you get at least three quotes from different companies before signing a contract.

You also have the right to change your mind within seven days, but make sure you don’t lose this option by signing a waiver. Liz Laine, energy expert at Consumer Focus, says:

‘Solar panels can save consumers money, but unfortunately there is bad practice in this industry, as in any other, and we know consumers have lost out through the actions of this company.

‘Our advice is that if it feels like pressure selling, it is.’

Trading Standards, which is investigating ESG, says customers must wait until the company is dissolved before they can make a claim for their cash.

Money Mail received separate statements from Mr Manley and Mr Dickson.

Mr Manley says he set up Energy Reduction UK alone — although Mr Dickson is listed as a director — because he did not agree with the way that ESG’s customers were being treated by third-party installers.

‘He says he cannot comment on any issues relating to ESG.

Mr Dickson says ESG stopped trading in December. However, records at Companies House show its status as ‘still active’.

He says its liquidators will do everything possible to recover this debt in order to repay Energy Saving Group’s creditors, which includes customers who are owed refunds.