The investigation, which drew on company records, enforcement notices and interviews with consumers and installers, paints a picture of widespread misbehaviour in the $572 million Victorian Energy Upgrades (VEU) program. The scheme encourages installers to offer discounts on energy-efficient products such as hot water systems, refrigerators and televisions, with certificates valued at $83 each claimed for installations.
Over the past six months, the Essential Services Commission has identified a rise in the use of AI-generated images to provide false photographic evidence of installations. In September, the regulator ordered a business to surrender $230,000 worth of carbon credits after alleging false claims and staged photos. Another company was banned from the scheme in August.
Nearly 20 businesses have been suspended or cancelled over the past two years, with some collapsing into liquidation after being penalised, leaving consumers owed millions in deposits and without warranties. In one extreme example, an employee at a sustainability company is being pursued for allegedly transferring $5.9 million worth of carbon credits to his own business.
The program, which the government says has helped 2.4 million households and 180,000 businesses, is set to become even more significant next year when all solar rebates are switched onto the VEU scheme, raising concerns about integrity as the program expands.