'Predatory' companies selling heat pumps by making false rebate promises, warns Efficiency N.S.

Efficiency Nova Scotia is warning homeowners of contractors and companies wrongly claiming to be affiliated with the organization and selling heat pump systems with the promise of a rebate that in some cases never materializes.

The non-profit organization, which offers programs and rebates for energy-efficient initiatives, has placed a notice at the top of its website that warns would-be customers to watch out for "aggressive and predatory sales tactics" that could put them at "significant financial risk."

"We've been seeing an increase in activity with some sales companies in Nova Scotia really misleading customers," Janet Tobin, the communications manager at Efficiency Nova Scotia, told CBC Radio's Information Morning Nova Scotia on Tuesday.

"They're pushing high-interest, long-term financing, often inflated prices on heat pump systems and installations, kind of all with the promise that the rebates that you could get would cover those financing charges before any payments would even begin."

Tobin said the organization has heard from customers who've been targeted on social media and through door-to-door sales or cold calls. The companies try to entice customers — primarily low- to moderate-income households — with assurances of fast-tracking rebate approvals. 

"These are promises they cannot keep," Efficiency Nova Scotia says on its website, noting only the organization can confirm approval or eligibility.

Customers go ahead and install the heat pumps only to realize there was never a rebate application submitted to Efficiency Nova Scotia on their behalf as promised, that it was not properly filled out, or that they don't in fact qualify.

"And then of course, that causes a tremendous amount of stress and, you know, undue and unnecessary financial hardship for these customers," said Tobin. 

Tobin said it appears the companies are legitimate and have a place in the market, but she cautioned customers to do their research to ensure "that anyone who is looking for financing is going in eyes wide open" and "really understands what they're signing up for." 

Tobin said these unaffiliated sellers are targeting three core programs — the HomeWarming Program, the Moderate Income Rebate Program and the Oil to Heat Pump Affordability Program — that are designed to support low- to moderate-income Nova Scotians in receiving upgrades.

Efficiency Nova Scotia says it has taken steps to address the issue, including spreading awareness to the public and notifying authorities. 

Tobin said that for most of their programs, homeowners need to pre-apply and receive approval before any work can be done. She added that if customers have any questions or concerns about an application, they can reach out directly to Efficiency Nova Scotia by phone or online.