The HERO program allows you to finance a solar PV system, energy efficiency products, water efficient products and other renewable energy products. The product costs and the installation costs are financed.
The HERO program delivers a low-fixed interest rate. Payments are spread out over the expected life of the improvement not to exceed 20 years. As a result, the monthly (annual) costs are roughly equivalent to utility savings.
A variety of states, including California, have instituted programs that provide immediate rebates for energy efficiency related improvements or solar PV systems. Additionally, the federal government provides tax grants which translate into getting a check from the federal government just by making your home or business more efficient!
Unlike the standard home equity loan that requires full payment upon sale of the property, the special tax is attached to the property and will be assumed by the new owner unless the lender requires the remaining balance to be paid off in full.
According to the EIA, in the last 10 years, electricity costs have increased by 32% and natural gas costs have increased by 88%. Increasing global demand for dwindling natural resources point to continued price increases. By improving the energy efficiency of your building and installing a solar PV system, you can reduce your energy consumption and stabilize your utility costs.
Studies show that high efficiency homes and homes with solar PV sell for 10% more than comparable buildings. Not only do you specifically appeal to the green and clean-tech crowd, but every buyer understands the concept of lower utility bills.
A HERO program loan is easily repaid through your property tax bill. Once you have completed installation and funding of your building improvements, a lien is placed on your property for the amount borrowed. A fixed payment is due semi-annually until the entire amount is paid off. If you sell your property, the HERO program loan remains with the property and will be assumed by the new owner.
In the United States, buildings account for 40% of all energy consumption and 36% of all CO2 emissions. By consuming less energy and by producing clean renewable energy, you can reduce your carbon footprint.