HERO is a type of PACE financing and a new way to pay for home improvements that help save energy and water. The financing can be applied to pay for installation of solar power, artificial turf, heating and air conditioning and other upgrades to your property. In fact, there are more than 50 different types of energy efficient, renewable energy and water saving products that qualify for HERO financing.
HERO ensures that each product financed by the program is rated as energy efficient by state or federal agencies, so you may also enjoy a reduced energy bill as a result of completing your HERO improvements.
HERO payments are made through a lien item on your property tax bill. Property owners can spread out the payments over five, 10, 15 or even 20 years, depending on the life expectancy of the energy efficient product they are paying for. In general, a five- or 10-year loan term is best because they offer faster pay back and less interest paid over the life of the loan.
Because the improvement made stays with the property, you may be able to transfer any remaining balance to the new owner when you sell your home, depending on the buyer and certain requirements their lender may have.
HERO Quick Facts
HERO financing may:
- - Save you money.
- - Increase your home’s property value.
- - Carry interest rates that are fixed and competitive.
- - Be transferrable to a new owner if you sell.
Your local government allows your HERO financing to be repaid along with your other property taxes, but you pay the full amount over time, not all at once. Also, interest on HERO payments may be tax-deductible, but consult with your tax advisor for details.
HERO is a good borrowing option for many homeowners. If you are interested in learning more about HERO financing for your solar power or other energy efficient upgrade to your home, contact the HERO program directly to see if you may qualify.