Solar installers 'cheated' out of millions

At a time when the solar power industry should be booming, solar installers across Australia say they are being "cheated" out of millions after trusting a third party to chase their government energy rebates.

The small businesses used middleman service Emerging Energy Solutions and its affiliates to organise their green energy rebates from the federal government.

But the companies have kept the government money for themselves.

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Carolyn Lee, Director of The Energy Experts in Kiama, used the Greenbot app.

She says they are owed $40,000 across 14 jobs.

"What happened is they've taken the money and they've run," Lee claims.

"We are paid [the rebate] so the customer gets a point-of-sale discount, so they don't have to worry about sorting out the rebate.

"Some companies have been cheated out of hundreds of thousands of dollars and they've had to lay off staff.

"It's a real shame, this is a buoyant industry...it's one that should be booming, yet it's on its knees because traders like them are doing the wrong thing."

The rebate money cannot be claimed directly from the government by the consumer. Installers have to go through a registered middle-man service that trade small-scale Technology Certificates (STCs).

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The federal Clean Energy Regulator then approves those certificates, which is when the installers are meant to receive the rebate from the registered third party.

Now, Emerging Energy Solutions has gone into liquidation, owing creditors more than $86 million.

Director of 1Power Solar, Tyronne Pathiranage, says he is also owed money by the company, and it's pushed his business to the edge of closing.

"It's around nearly $32,000...It's taxpayer money as well," Pathiranage said.

"It's pretty devastating."

Solar installers like Pathiranage and Lee were hopeful that the federal Clean Energy Regulator would protect them, but they say the regulator has refused to help.

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Shadow Minister for Energy Ted O'Brien says installers going under puts Australians at risk of having long-term warranties voided.

"If these installers go under, this also impacts the households they service," O'Brien said.

"When the Minister fails to act then they're paying the price for his incompetence"

The regulator told 9News that it can't help with matters of non-payment.

It took steps to stop at least one of the affiliated companies, called Greenbot, but has failed so far due to court action.