HERO is an acronym that stands for Home Energy Renovation Opportunity.
The HERO Program offers a unique, affordable financing option for energy-efficient upgrades for increased efficiency, comfort and savings. Water-saving upgrades are also available in drought-impacted areas, such as California.
HERO is a PACE (Property Assessed Clean Energy) program that provides financing for energy-efficient and renewable energy products. In the state of California, HERO provides these same financing options for water-saving and drought-resistant products.
HERO offers more consumers access to energy-efficient options because HERO is financed as an assessment on your property. The interest on these payments may be tax deductible.* Approval for HERO is primarily based on the equity in your home and your debt payment history, rather than your credit score. HERO finances 100% of the cost to purchase and install eligible products, with fixed rates and flexible terms of 5-20 years, depending on the improvements you choose.
Should you decide to sell your property before your HERO assessment is paid in full, any remaining balance may be able to transfer to a new property owner (please see the “Real Estate Transactions” section below for more details).
*Property owners should consult their tax advisor regarding potential tax benefits.
You will see a line item titled “HERO FINANCING” on your property tax bill. If you make property tax payments through an impound escrow account, your lender will adjust your monthly payment to include the amount due for HERO financing.
Any property owner who lives in a city or county where HERO has been approved by the local government can apply for HERO financing. To find out if HERO is available in your community, please check our communities list or call (877) 795-3371 ((877) 795-3371).
No. Only HERO Registered Contractors can install HERO eligible products. Each state has different qualification requirements in order to register for HERO. Contractors can determine applicable eligibility requirements on our website.
Enter your city or zip code on our Find a Contractor page to find a HERO registered contractor in your community.
Specific eligibility requirements for residential properties include the following:
- Mortgage payments must be current at the time of application, and property owner(s) must not have had more than (1) 30-day mortgage late payment over the past twelve months.
- Property taxes must be current, and there must be no more than one late payment in the past three years.
- No outstanding involuntary liens, such as tax liens or mechanic’s liens.
- Mobile homes must be permanently attached to the property and the owner of the underlying property must be the applicant and be subject to real property taxes.
Some criteria can vary state to state. For a full list of your eligibility requirements, give us a call at 855-HERO-411 (437-6411).
There are more than one million energy-efficient, and renewable energy products that qualify for financing through HERO. You can explore our list of eligible products for more information. Water-saving and drought-resistant products are available in some states, such as California. If you wish to install a product that is not on the list, contact us at (877) 795-3371 ((877) 795-3371) to get an application.
No. Total mortgage liens on the property cannot exceed 90% of the value of the property.
Mobile or manufactured homes are eligible if they are permanently attached to the real property and pay real property taxes (not DMV fees). The owner of the mobile home must also be the owner of the underlying land. Since an AVM value is often not available for mobile or manufactured homes, the tax assessed value or recent appraisal value may need to be used for the debt-to-value and eligible product costs calculations.
Condominiums may be eligible, depending on the Covenants, Conditions and Restrictions (CC&R’s) of the complex as well as the physical design of the unit. Condominium owners who apply for financing through HERO may need to obtain written authorization from condominium management stating that the homeowner is allowed to install the proposed eligible products.
Yes. Trust properties are eligible for HERO as long as adequate documentation of the trust is provided with the application, as well as the applicants’ authority under the trust. All trustees must sign all HERO Program documents.