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Zero Down, No Upfront Cost Program with the HERO PACE Program

Innovative financial services companies such as Ygrene, Renovate America that offers competitive loans under the California Home Energy Renovation Opportunity (HERO) Loan Program.


How the HERO Loan Program Differs from Traditional Loans

Most solar loans are similar to other types of loans a property owner would use to finance home improvement projects. The HERO program, however, is unlike a standard solar loan. It’s a Property-Assessed Clean Energy (PACE) loan, which has a few practical differences that can make a big impact.

Property owners with a standard solar loan repay the amount they owe in monthly installments. With a HERO loan, you pay the loan back once a year for a fixed term (5-30 years) through an assessment that is added to your property tax bill. Many property owners find this appealing for a simple reason: a single annual payment, rather than monthly payments, means you can immediately start to benefit from your solar savings. In many cases, the amount of money that you save in electricity costs throughout the year will be greater than the annual increase in your property taxes. As a result, you can benefit from the net gains of your solar investment starting on day one.

Homeowners who take out a traditional loan to finance their solar energy system are obligated to repay the full amount of the loan even in the event that they sell their home. This isn’t typically a problem – solar actually increases your home value, and most homeowners will increase the sale price of their home enough to repay the loan without a problem after they’ve sold their property. However, that isn’t always a guarantee.

PACE loans remove this variable entirely from the home sale process. Unlike more traditional loans, PACE loans are attached to the property itself, not the individual borrower. If you sell your property before your solar energy system is completely paid off, the rest of the money owed transfers to the new property owner, so you only pay for what you use.

The eligibility criteria for HERO loans are also different from other solar loans. While funding amounts and interest rates for traditional loans are determined by your credit, PACE loan amounts are determined by the tax capacity of your property (i.e., how much your property is worth). For property owners who don’t have high enough credit scores to access favorable loan options, HERO program financing is a great alternative for receiving the financial benefits of solar with no upfront costs.

As an added benefit, in many cases, the interest on PACE loans is tax-deductible, because it’s considered part of your property taxes. HERO financing helps lower energy bills for homeowners. Taking advantage of HERO financing can make energy storage and solar installation more affordable. Utilizing HERO to finance installation of these green upgrades can lower utility bills up to 50%, increase property value, and promote a greener future.

  1. HERO financing makes these benefits accessible with fixed rates, flexible term lengths, and no upfront costs. Thousands of homeowners have upgraded their homes with the help of this loan program.
  2. HERO financing can be combined with other California initiatives, such as the Self Generation Incentive Program (SGIP), to unlock even greater savings.
  3. The HERO program is a Property-Assessed Clean Energy (PACE) program that provides homeowners access to financing for renewable energy home improvements, including energy storage and solar, saving you money on energy bills. HERO is paid at a fixed interest rate through an additional line item on your property taxes, with approval primarily based on the equity in the homeowner’s home and debt payment history rather than credit score.

The Hero Pace Program financing offers many advantages:

  • 100% Financing, No Money Down
  • No Payments For Up To 12+ Months
  • Based On Home Equity
  • Repaid With Your Property Taxes
  • No Minimum FICO Required
  • Prequalified In Under 30 Minutes

To learn more, contact us.