Protecting Yourself from Home Energy Rebate and Building Scams

By MPCO Staff

Scams pose a major threat to Californians who are searching for trusted contractors to do their home retrofit projects.

Commonly, fraudsters pitch fake deals impersonating government entities and misrepresent existing state and federal laws to make an offer sound legitimate. For example, a contractor might say he or she represents the California Department of Energy – which is not a real organization – instead of the California Energy Commission (CEC), or offer Inflation Reduction Act (IRA)-funded free products and upgrades that aren’t actually available. Sometimes, the bad actors cite fake legislation as the basis for a deal.

Tips for Consumers

When a solicitor provides information on agencies and groups offering programs, contact them directly to confirm the info is accurate. Using a phone number or website known to be legitimate, look up and contact the company represented by the solicitor, directly. Also, be wary of contractors or builders who:

• Request financial information to submit rebates on your behalf.

• Don’t mention a specific tax credit or rebate program, or refuse to provide a link or source for the rebates or incentives.

• Avoid direct questions or don’t allow you to ask questions.  

• Recommend a home visit without a specific reason.

• Promote a program that does not appear on a state agency or trusted program administrator’s website.

Here are some scams that CEC program staff have encountered: 

The $10,000 for Windows Scam  

Consumers have contacted the CEC asking about contractors claiming to participate in the Equitable Building Decarbonization (EBD) Program. They report offers of free energy upgrades, often including window installation and wall painting as part of the Inflation Reduction Act. Some consumers reported that solicitors asked to enter homes to conduct an evaluation and determine financial eligibility. Consumers should not allow solicitors to enter their homes but rather take their information and first verify the status of the program the solicitor claims to represent. Consult a reliable source such as the website of the government agency offering the programs. 

EBD includes a loan program for building decarbonization retrofits for eligible homeowners and renters, and direct install programs that provide no-cost decarbonization retrofits to low-income households in under-resourced communities. The incentive program is being implemented through the GoGreen Financing program with the State Treasurer’s Office.  

The Statewide Direct Install Program is scheduled to start this summer in targeted areas of California, with a full launch in winter 2025. The administrators are the Association for Energy Affordability (Northern region), the Center for Sustainable Energy (Central region), and Los Angeles County (Southern region). The EBD Tribal Direct Install Program is under development. 

Questions and concerns can be directed to equitablebuildingdecarb@energy.ca.gov. 

The Benchmarking Scam 

The Building Energy Use Benchmarking and Public Disclosure Program requires owners of large commercial and multifamily buildings to report energy use to the CEC by June 1, annually. The CEC does not charge owners a fee to submit the reports. However, some entities not affiliated with the CEC are offering to submit reports on behalf of building owners and claiming a fee. Building owners may choose to use paid services, but they are not required to go through these entities to file and energy use report. 

Official program notices come from the CEC’s address (physical address: 715 P Street, Sacramento, CA 95814 / email: benchmarking@energy.ca.gov) with the agency’s official logo. The Benchmarking Helpdesk is available at Benchmarking@energy.ca.gov or (855) 279-6460.

Appliance Rebate Scams 

CEC staff have also received complaints about misrepresentations of the Home Electrification and Appliance Rebates (HEEHRA) Program, including fake websites and people approaching homeowners and property owners claiming to represent the CEC and/or the IRA rebates. 

However, the only federal, IRA-funded home electrification rebates currently available to Californians are rebates provided through TECH Clean California contractors. TECH Clean California is the program administrator of the HEEHRA Program.  

Before accepting any work done for a rebate, verify the contractor is registered with TECH Clean California. Look for the HEEHRA badge when finding a contractor at the Switch is On. The contractor must be licensed and insured so go to Check A License - CSLB. 

Here are some red flags to be aware of when speaking with solicitors about HEEHRA rebates:  

• The person mentions non-existent legislation or departments such as Energy Reduction Act or California Department of Energy) that sound similar to real ones (Inflation Reduction Act, California Energy Commission) but have no links and/or contact information to verify them with. 

• Contractors who request access to your home but who are not on the TECH-certified and HEEHRA-trained contractor list.  

• Contractors who request your income details or personally identifying information via their company website, by phone, or any other means for HEEHRA rebates.  

Questions and concerns about the HEEHRA program can be directed to IRAresidentialenergyrebates@energy.ca.gov or 916-343-8471, or TECH at tech.info@energy-solution.com.  

The Federal Trade Commission also provides advice for consumers. 

To file a complaint against a business, please refer to the California Attorney General’s Office: Protecting Consumers or the California Department of Consumer Affairs: To File a Complaint Against a Professional or Business.