More than 129,000 additional homeowners across Missouri now have access to HERO, a new financing option for energy-saving home improvements that allows property owners to pay back the cost of efficiency and clean energy upgrades through their property tax bill. Local communities, small businesses and homeowners across Missouri have embraced HERO, which is now available to nearly half of Missouri households in over 220 communities. HERO is a form of Property Assessed Clean Energy (PACE) offered through a public-private partnership between the Missouri Clean Energy District (MCED) and Renovate America, the nation’s largest PACE provider.
Since launching in late 2016, HERO has quickly become Missouri’s most effective PACE financing option. HERO has financed more than $10 million in energy-saving home improvements for nearly 650 Missouri homeowners. These improvements include energy-efficient HVAC systems, roofing and window replacements during the summer heat, as well as rooftop solar. These improvements are on track to save Missouri homeowners millions on their energy bills, improve the housing stock, and reduce emissions by nearly 30,000 tons.
HERO’s latest expansion is expected to spread these economic benefits to the new communities where it will operate. It’s estimated that HERO-financed home improvement activity has resulted in the creation of over 80 new Missouri jobs and over $17 million in economic activity. Many of these new construction-sector jobs can’t be outsourced or automated. In addition to residential PACE activity, MCED also has a pipeline of over $10 million for PACE-financed projects for commercial properties.
The new communities where the HERO financing is now available, includes the cities of Columbia, Jefferson City, and other portions of central Missouri, including Cooper and Pettis counties. HERO is already active in numerous municipalities in the Kansas City, Springfield and St. Louis metro areas.
“HERO is creating jobs, saving families money on their energy bills and giving homeowners a new way to invest in their homes and neighborhoods—that was always its promise and it’s exciting to see what PACE financing has been able to achieve in such a short amount of time,” said David Pickerill, Executive Director of MCED. “Simply by bringing another financing option to the marketplace, HERO is also helping the state and local communities reach their energy efficiency goals.”
HERO has recently introduced lower interest rates to make PACE financing even more accessible for Missourians. HERO has also introduced its Contractor Quality Rating system, which helps ensure homeowners are working with contractors who have good performance records — as well as being licensed, bonded, insured — a service not offered by other payment options.
HERO also continues to carry the strongest consumer protections in the PACE industry. To help homeowners easily understand their financing terms before they finalize their contracts, all homeowners receive written disclosures modelled on the federal “Know-Before-You-Owe” forms for mortgage lending. The form includes important information about tax deductibility and how PACE assessments are treated during home sales. HERO also requires a live phone call with a HERO representative to confirm understanding of financing terms and information on household budget implications before the financing documents can be finalized.
Homeowners interested in applying for HERO financing or who wish to learn more should visit Renovate America. or Missouri Clean Energy District. Contractors interested in offering HERO financing can register here.
The Missouri Clean Energy District is a statewide political subdivision established to provide unlimited capital to fund energy efficiency and renewable energy projects through PACE financing. Property owners – both public and private – in member communities may apply for PACE financing for energy-saving upgrades and retrofits to their property. Missouri communities may join the District to make funding available to all property owners within their jurisdiction. There is no membership cost to local governments and no fiscal risk because no public funds are used for financing.
Renovate America offers a tech-enabled financing platform for home improvement and commercial retrofits that empower communities to modernize and make their housing stock more efficient while giving small businesses the tools they need to grow. In addition to financing home improvements through an unsecured lending product, Benji, Renovate America offers communities HERO financing. HERO is the leading residential Property Assessed Clean Energy (PACE) program in the U.S. and has been used by over 100,000 homes to make energy and efficiency improvements. It is estimated that HERO is on track to save billions of dollars in energy and water bills, and has created over 20,000 local trade jobs that cannot be offshored or automated. Renovate America has built the world’s largest green bond platform, with a volume of originations that enables securitization of HERO PACE bonds multiple times a year, attracting international investment to meet U.S. clean-energy objectives.