Ad description
A direct mailing, for Solar NI, an energy saving company selling solar systems, featured text that stated "Dear Homeowner, You are entitled to 8-10% return on investment, tax free, for 20 years! Along with the Government, Solar NI is able to offer you an exclusive investment that will earn up to £1,000 each year for the next 20 years (increasing in line with energy costs)! ... You will earn money: You will get paid for ALL the electricity you generate whether you use it or not! ..."
Issue
One complainant challenged whether the claim "You will earn money: You will get paid for ALL the electricity you generate whether you use it or not!" was misleading and could be substantiated.
Response
AC Solar NI Ltd referred to the Northern Ireland Renewables Obligation (NIRO), which they stated set out how green energy generators earned money. The NIRO placed a legal requirement on all Northern Ireland licensed electricity suppliers to provide Ofgem with evidence that a specified quantity of the electricity supplied to consumers was generated from renewable sources, which was measured in megawatt hours (MWh). Evidence of compliance with the NIRO was in the form of Northern Ireland Renewables Obligation Certificates (NIROCs) which were issued free of charge by Ofgem to electricity generators for each MWh of eligible renewables generation.
The NIRO stated that for a generator to receive support and obtain NIROCs, they had to seek accreditation from Ofgem as a renewables generator and meet the requirements for issuance of NIROCs, which were then issued for every MWh of electricity generated. Furthermore, NIROCs were issued for every MWh generated regardless of whether the electricity was used, exported to the grid or a combination of both. Generators could sell their NIROCs directly or via an agent to energy suppliers and, additionally, export any electricity that they did not use themselves to the grid. Once accredited, generators received support under the NIRO for 20 years or until 2037, whichever was sooner.
AC Solar NI stated that they sold and installed PV (photovoltaic) solar panels for their consumers, which were all grid linked. Furthermore, for each installation they went through the "Generation Tariff" application form with the consumer, which was supplied by an agent who would manage the consumer's NIROCs (including payments) and export of any surplus electricity to the grid. They stated that all their installations were registered for NIROC payments with that agent and provided some sample application forms.
Assessment
Not upheld
The ASA understood that under the NIRO, homeowners in Northern Ireland who had installed electricity-generating technology from a renewable source such as solar PV, could sell their NIROCs directly or via an agent to energy suppliers and additionally, export any excess electricity to the grid. Furthermore, we noted that NIROCs were issued by Ofgem for every MWh of electricity generated, regardless of whether it was used, exported to the grid or a combination of both.
We noted that for each installation they carried out, AC Solar NI went through the agent's "Generation Tariff" application form with the consumer. The application form notified consumers that the information they provided would register them with Ofgem for NIROCs, and allow them to export electricity to the grid. We noted that it was mandatory for consumers to sign off the application form in order to gain permission to export electricity to the grid, which was managed by the agent and that consumers who chose not to appoint the same agent to manage their registration with Ofgem for NIROCs were required to directly apply for Ofgem Accreditation. We also noted that consumers were required to provide their bank details so that payments for NIROCs and exporting electricity to the grid would be made directly into their accounts.
Therefore, we concluded that AC Solar NI had provided sufficient information to show that their customers would earn money from the electricity their solar panel systems generated and that the claim "You will earn money: You will get paid for ALL the electricity you generate whether you use it or not!" was not misleading.
We investigated under CAP Code (Edition 12) rules 3.1 3.1 Marketing communications must not materially mislead or be likely to do so. (Misleading Advertising) and 3.7 3.7 Before distributing or submitting a marketing communication for publication, marketers must hold documentary evidence to prove claims that consumers are likely to regard as objective and that are capable of objective substantiation. The ASA may regard claims as misleading in the absence of adequate substantiation. (Substantiation), but did not find it in breach.
Action
No further action necessary.
