Vivint Solar, Inc. (NYSE: VSLR), a leading national provider of residential solar energy systems, and Renovate America, the leading provider of residential Property Assessed Clean Energy (PACE) financing, 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.
Through the Vivint Solar and HERO Program, 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 5 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 home owner at the time of sale.
The announcement of this strategic relationship comes at the same time as the Federal Housing Administration's newly issued federal policy guidance that specifically endorses PACE financing – facilitating expanded access to solar for more Americans.
"We are excited to work together with Renovate America to provide this innovative solar financing product that will make solar available to a wider 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 Thomas Plagemann, Executive Vice President of Capital Markets at Vivint Solar. "We are pleased with the new FHA guidelines announced today that open the door to a 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 placed their trust in us to invest 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 now able to provide more families the peace of mind to go solar and lower their utility bills."
Vivint Solar is now rolling out the HERO Program throughout California, and both companies are working with state and local governments to expand this product offering nationwide.
About Vivint Solar
Vivint Solar is a leading provider of distributed solar energy – electricity generated by a solar energy system installed at a customer's location – to residential customers in the United States. Vivint Solar's customers pay little to no money upfront, receive significant savings relative to utility generated electricity and continue to benefit from contracted energy prices over the 20-year term of their contracts. Vivint Solar finances, designs, installs, monitors and services the solar energy systems for its customers.
About Renovate America
Renovate America partners with state and local governments to offer HERO, a property assessed clean energy (PACE) financing program, to communities. HERO is the leading PACE program in the U.S. and has financed more than $1.5 billion of improvements, representing the vast majority of residential PACE projects nationwide. This unique public-private partnership offers consumers access to financing for more than 60 types of products that reduce energy and water consumption, without the need for government funding. The HERO Program has received a number of recognitions including a Climate Leadership Certificate for Innovative Partnerships by the U.S. Environmental Protection Agency, inclusion in the 2016 White House Water Summit, the Governor's Environmental and Economic Leadership Award in California, and the Urban Land Institute Best of the Best.