Vivint Solar Inc. and Renovate America are collaborating to expand access to rooftop solar for homeowners. By offering Renovate America’s HERO program as its PACE financing option, Vivint Solar is enabling more homeowners to purchase solar systems and lower their utility bills.
Under this business agreement, homeowners will be able to use HERO financing to purchase Vivint Solar systems and pay for them over time through their local property taxes. Payments are made at a fixed interest rate for terms of five to 20 years, and the interest on the payments may be tax deductible. Since it is expected that the system will stay with the home and provide utility savings into the future, any remaining balance on the assessment may be able to transfer to a new homeowner at the time of sale.
The announcement of this relationship comes at the same time as the Federal Housing Administration’s recently issued federal policy guidance that endorses PACE financing.
“We are excited to work together with Renovate America to provide this solar financing product that will make solar available to a range of consumers, including those who either do not have the upfront capital for a solar energy system or for whom traditional loans, Power Purchase Agreements or Solar System Lease Agreements are not viable options,” said Vivint Solar Executive Vice President of Capital Markets, Thomas Plagemann. “We are pleased with the new FHA guidelines that open the door to wider acceptance of the PACE financing product throughout the United States.”
Since its launch at the end of 2011, HERO, which stands for Home Energy Renovation Opportunity, has financed more than $1.5 billion of improvements such as solar, energy-saving roofing, windows, and doors, more efficient HVAC systems, and building insulation. About a quarter of the home energy improvement projects – around 19,000 – have been rooftop solar installations.
“More than 67,000 homeowners have invested in the efficiency of their homes,” said Greg Memo, executive vice president of business development and product strategy at Renovate America. “Vivint Solar and Renovate America are able to provide more families the ability to go solar and lower their utility bills.”
Vivint Solar is rolling out the HERO Program throughout California, and both companies are working with state and local governments to expand this product offering nationwide.