H.E.R.O. stands for Home Energy Renovation Opportunity. H.E.R.O. is a marvelous program that the solar and energy efficiency industry has desperately needed. What H.E.R.O. does is pre-approve you for a secured loan where all the fees and interest are tax deductible. H.E.R.O. takes the total cost of your energy loan and bundles it into your Tax Bill. This can be impounded with your mortgage payment.
What this means is that for $0 out of pocket, you can go solar, and it can be rolled into you mortgage (via your property taxes), leaving you cash flow positive from Day 1. The best part is you own the system. If your mortgage is impounded, your monthly balance will increase, if it is not, then your property tax bill will increase. Your monthly electricity rate plummets. Your solar energy representative will do the math with you and provide you with a schedule of payments and a cash flow statement so you can see your investment pp>
HERO has plans that can pay off the loan in 5, 10, or 20 year terms. The rates range from 5-10%.
The downside of HERO is there are origination fees, which are tax deductible, but still fees. The other issue with HERO is that it can show up as a lien on your credit report or when you are doing a refinance, but it is not a lien that needs to be satisfied in order to refinance. This is still a great opportunity to go solar for $0 down, have a great positive cash flow, and keep your own capital for other investment opportunities.
Anyone can qualify for HERO provided that you have 10% equity in your home. If you decide to do a cash purchase, you are still eligible to receive the 30% federal tax credit. Less than stellar credit is not an issue with HERO, this makes the program very lucrative and allows homeowners who cannot qualify for leases to take advantage of the opportunities going solar.
For more information about going solar and using HERO, please visit:https://www.heroprogram.com/