One of the primary reasons people avoid switching to solar is concern for the costs of purchasing solar panels. In the face of this sustainability road block, government-supported finance solutions are emerging, making solar installation an achievable dream for more people than ever. In fact, today’s homeowners have a variety of solutions to choose from when it comes to paying for solar power systems.
HERO Financing is one exceptional example of the many solutions open to those interested in renewable energy. With a number of finance options to choose from, HERO Financing offers everything you need to access the benefits of solar.
About HERO Financing (What They Do)
The HERO program – which stands for Home Energy Renovation Opportunity – arrived in the United States in conjunction with the PACE (Property Assessed Clean Energy) program, designed to help people across California access water-efficient, energy-efficient, and sustainable products for their homes and businesses.
The HERO program provides financing to customers based on the value of their home property, which is repaid on an annual basis through property tax payments collected by the County.
By arranging partnerships with local governments, HERO Financing allows clients to borrow up to 15% of their total home value towards renewable energy projects – at fixed, low rates. You have the option to repay the amount you borrowed over a period of up to twenty years.
HERO Financing offers three different financial solutions to their customers, to cater to each individual’s situation.
- Financing – Customers get the benefit of owning a solar property, without any upfront expenses for panels and systems. This can be the best way to maximize long-term savings, and it’s the only way to access extra tax benefits, but it does come with extra costs.
- Leasing – Customers can “rent” their solar system for an indicated period of time. In this scenario, homeowners pay a set monthly rate, regardless of the energy the system produces each month.
- Power Purchase Agreement (PPA) – Customers sign a power purchase agreement, in which a third-party will own the solar system. The homeowner pays for the electricity generated at a per kilowatt-hour rate.
How to Qualify for HERO Financing
The mission of HERO Financing is to make accessing solar power as easy as possible. In order to apply, you simply need to live in a county or city where the local government has approved the HERO program. (It’s also possible for unsigned governments to apply for HERO financing.)
If your area is eligible, check to ensure that you meet the essential requirements to receive financing:
- You must be the owner of the property in question.
- You must be current with all taxes, with no more than a single late payment in the last three years.
- You must not have mortgage debt exceeding 90% of the property value.
- You must be up to date with mortgage payments.
- You must not have had any bankruptcies in the last seven years.
- There must be no state or federal income tax liens on the property.
If you are eligible, HERO Financing will offer you a loan based on an assessment of your property value – and, the interest on the payments you make may be tax deductible. Approval for the HERO program depends on the equity of your home and debt payment history, rather than just your credit score.
The Benefits of HERO Financing
With HERO Financing, homeowners can access the assistance they need to install sustainable solutions for solar power. Through its connection with PACE, the HERO program offers its customers:
- Flexible repayment terms of up to 20 years – regardless of your credit score
- No upfront costs for panels and solar systems
- The option to transfer owed balances to new owners, upon sale of property
- Chances to access useful tax benefits
- Complete control – HERO registered contractors are only paid after you’re happy that your project is complete
On top of that, going solar can cut your utility bills in half, so you’ll not only see the benefits in your environment, but also in your bank account, boosting the rate at which you can repay the money borrowed.
Why Use HERO to Access Solar?
Programs like HERO can help you finance a positive move towards sustainable energy – without the threat of expensive initial investments draining your budget. In other words, you can start giving back to the environment, improve the value of your property, and lower your energy bills, without the hefty upfront costs. HERO allows you to pay for your solar installation over time, in a way that suits your budget and your lifestyle.
You want to save money while helping the planet, and your local government wants to promote sustainable homes and renewable power; it’s a win-win.