The scheme is designed to facilitate a shift to more energy efficient lighting technologies. Resellers and consumers can negotiate with utilities to sell credits representing energy saved by the installation of new energy efficient lighting technologies.
The system has various inbuilt criteria, however it does not filter products based on life rating. Furthermore some resellers promoting this scheme falsely state that LED fixtures can be supplied free, when in fact the consumers are asked to sign away carbon credits in the form of certificates which they on-sell to the utilities for a significant profit.
Resellers can include new start up companies that have come into being simply to exploit a government scheme that allows to promote goods for free when in fact they generate significant profits from the sale of the consumers credits relating to the energy savings gained. This process results in low quality products being provided for free (no upfront payment) whilst higher quality more expensive units only attract a partial rebate.
Consumers are asked to sign documentation that transfers their ownership of credits to the reseller. This process being both new and complicated allows for the reseller to offer inferior products together with no up front payments which makes it difficult for the consumer to apply price pressure and receive a good deal. In summary if the products are seen as free there is no argument and if the credit system is not understood by the consumer there is no argument. These components can result in the supply of the lowest quality products as only energy savings are considered by the reseller.