How much deposit protection HIES members must provide

The cover is not automatic. It is only active once the household receives written confirmation from HIES, and the installer must register the installation with HIES for it to be in place¹. Two documents follow: a Customer Registration Certificate and a Deposit and Stage Payment Protection Certificate¹.

For a household buying solar panels, a battery or a heat pump, this is the difference between a deposit that is recoverable if the firm stops trading and one that is simply gone. It is a money-protection rule, not a performance guarantee, and it does not remove the household's dependence on the installer's solvency, on the scheme's administration, or on the insurer behind the policy.

What HIES deposit protection is

HIES is a consumer code for home insulation and energy systems work, and it is a TrustMark Scheme Provider⁴. It is one of only two companies meeting Chartered Trading Standards Institute approved consumer code requirements in the renewables market⁵. All HIES Accredited Installers operate under a CTSI Approved Consumer Code, and the scheme describes a detailed accreditation process with continuous monitoring to ensure installers meet professional and financial standards².

The deposit and stage payment protection sits inside that membership. It is not a product a household buys separately from a third party; it is a condition the installer carries as part of being accredited. That matters for how a household should read it. The protection is only as good as the scheme's monitoring and the insurance arrangements behind it, and it depends on the installer having registered the job.

HIES also acts as an alternative dispute resolution provider, so complaints about a member can be escalated through the scheme rather than only through the courts⁶. For energy independence, the practical value is that a household can commit money to a generating or heating installation without the whole deposit being exposed to one firm's balance sheet. The dependence that remains is on the scheme, the insurer and the installer's continued compliance.

The 2-year deposit protection period: what it covers

The deposit protection period is described as two years by one HIES member, which states that as members of the HIES consumer code it provides 2-year deposit protection³. That figure is a maker's statement about its own membership, not a scheme-wide published term, so it should be read as the period that member advertises rather than a universal rule for every HIES job.

The protection itself covers the deposit and stage payments if the installer stops trading before completing the installation, with completion by another installer or a refund, subject to policy terms¹. It is therefore a completion-period protection: it responds to a firm failing mid-job, not to a fault appearing years later.

That is a different job from an insurance-backed guarantee. An IBG is a specialist form of financial protection that can cover a household if the original installer ceases to trade during the guarantee period⁷, and it protects the homeowner if the installer goes out of business after completing the work, so repairs and workmanship issues can still be addressed⁸. The two sit at different points in the job.

The periods across the wider market vary. MCS approved financial protection products require at least six years' cover from the moment of installation⁹, and the maximum period of cover on the insurance-backed guarantee products MCS lists is up to 10 years¹⁰. The Installation Assurance Authority offers guarantees for heating measures, heating controls and draught proofing for 2 years¹¹. A household comparing a deposit protection period with a workmanship guarantee period is comparing two different clocks.

How the protection works if an installer stops trading

If the installer stops trading before completing the installation, the deposit and stage payments can be protected, with completion by another installer or a refund, subject to policy terms¹. The household is not left to negotiate with a liquidator; the claim runs through the protection attached to the registered job.

The claim needs evidence. A household provides proof of the payments made to the installer, and the documents required are the contract, all receipts for payments made, and any written guarantees¹. Missing receipts are the most common gap, which is why the payment trail matters as much as the certificate.

Where an insurance-backed guarantee is in place, the mechanism is similar in shape. If the installer provides an IBG and then ceases to trade, the insurer will honour the terms of the guarantee issued by the installer, in accordance with the terms and conditions of the policy, and will send qualified tradespeople to assess the issue and arrange remedial work if the claim is valid¹². The IAA states that should there ever be a failure in workmanship or design, it will ensure the issue is resolved regardless of the trading status of the installer⁶.

The limit is the cap. Because cover runs to 25% of the contract value and no more than £5,000, a household that has paid most of a large contract up front has exposed the balance. That is the dependence that remains even with a protected deposit.

What to check before paying a deposit

The first check is whether the installer is a current HIES member and whether the job will be registered. The installation must be registered with HIES by the HIES Accredited installer, and the household should make sure the installation is registered for the protection to be in place¹. Written confirmation from HIES is what activates it¹.

The second check is the size of the deposit against the cap. Citizens Advice guidance is not to agree to more than 25% on long jobs where a deposit cannot be avoided, and to push it down as much as possible¹³. That aligns with the protection ceiling, so a deposit at or below 25% is the portion most likely to be covered.

The third check is whether a deposit is needed at all. Deposits are normally only payable where specific or custom ordered items are needed or the installation will take longer to finish¹⁴. For a standard installation with off-the-shelf equipment, a large up-front payment is not the norm.

The fourth is the paperwork trail. Keep the contract, every receipt, and any written guarantees, because those are the documents a claim requires¹. The Renewable Energy Consumer Code requires its members to protect the money paid in advance of an installation, including the deposit¹⁵, so a household can also ask which code the installer belongs to and what that code requires.

1. Confirm the installer's current membership and that the job will be registered¹.
2. Keep the deposit at or below 25% of the contract value¹³.
3. Pay by a traceable method and keep every receipt¹.
4. Hold the registration and protection certificates once issued¹.
5. Check whether an insurance-backed guarantee covers the completed work¹².

How HIES compares with other consumer protection schemes

HIES and RECC are the two consumer codes relevant to the Boiler Upgrade Scheme, and installers must continue to hold membership with one of the two approved consumer codes to deliver work under that scheme¹⁶. Before registering, an investor must be a member of RECC or HIES, both CTSI approved consumer protection codes¹⁸. That gives the two codes a formal role in grant-funded work, not just a marketing one.

The schemes overlap in what they offer. Certified schemes such as EVCC and HIES provide assistance in terms of insurance protection and dispute resolution by choosing one of their member installers⁵. HIES holds an approved product described as a Domestic Property Insurance Backed Guarantee¹⁹, and its consumer code is listed with product and workmanship policy coverage²⁰.

Where they differ is in emphasis and in the products listed. RECC requires members to protect money paid in advance, including the deposit¹⁵. MCS runs its own financial protection requirements for its redeveloped installer scheme, with approved products carrying at least six years of cover from installation⁹. The IAA offers guarantees for heating measures, heating controls and draught proofing for 2 years¹¹.

For a household, the practical comparison is not which scheme is better but which protections apply to the specific job. A heat pump installed under the Boiler Upgrade Scheme brings the consumer code requirement with it¹⁶. A solar array may bring an MCS-listed insurance-backed guarantee instead. Checking membership is straightforward: EPVS allows a search by installer name to check whether an installer is registered²¹, and the equivalent route exists for each scheme.