Today Vivint Solar and Renovate America announced a new partnership to use property assessed clean energy (PACE) financing to support home solar installations. The financing mechanism will help lower the cost of solar power for homeowners.
The announcement follows an announcement from the White House today (July19) expanding the use of PACE to finance home solar and energy efficiency. The companies are launching the financing option in California with plans to expand it nationwide.
"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 Executive Vice President of Capital Markets at Vivint Solar Thomas Plagemann.
Under this PACE program Vivint Solar will use Renovate America's HERO (Home Energy Renovation Opportunity) program as its PACE financing option. Through the option homeowners can use HERO to purchase Vivint Solar systems and pay for the system over time through local property taxes. The companies explained that payments are made at a fixed interest rate over a period of 5 to 20 years. Under the agreements if a home is sold while the assessment it outstanding it will transfer to the new homeowners as will the solar array.
HERO, according to the companies has already financed more than $1.5 billion in home improvements since launching at the end of 2011. Roughly a quarter or 19,000 of financed projects were rooftop solar installations.
"More than 67,000 homeowners have placed their trust in us to invest in the efficiency of their homes,” Executive Vice President of Business Development and Product Strategy at Renovate America Greg Memo said. "Vivint Solar and Renovate America are now able to provide more families the peace of mind to go solar and lower their utility bills."
The White House announcement today coincided with the Federal Housing Administration's release of federal policy guidance for PACE financing. "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,” Plagemann said.Tweet