Business View - February 2016 15
owners—and in turn more than 10,000 new jobs
have been created in California.”
The majority of homeowners who choose HERO
have a system in their home fail or need replace-
ment or an upgrade. HERO’s PACE financing allows
them to make an investment in their home that is
likely to lower its operating costs, with no upfront
cash required, and to be paid back over terms based
on the useful life of the product through their proper-
ty tax collection. Those terms are often longer than
credit cards or home equity lines of credit would al-
low, bringing monthly payments within reach.
That affordability makes a variety of energy-saving
products available, including solar power panel in-
stallations, whole-home heating and cooling (HVAC)
systems, energy-saving windows and doors, and
roofing and insulation. HERO also supports a vari-
ety of products to help homeowners save water, in-
cluding high-efficiency toilets, faucets and shower-
heads; drip irrigation systems; rainwater catchment
systems; gray water systems; and artificial turf and
other drought-tolerant landscaping.
In addition to creating jobs, the 50,000 homeown-
ers will save an estimated $2.2 billion on lower util-
ity bills, conserve 7.8 billion kWh of energy, reduce
emissions by 2.1 million tons or the of equivalent
taking 400,000 SUVs off the road for a year, and
save more than 2.9 billion gallons of water or the
equivalent of 92 million showers.
“The transition to a clean energy economy is hap-
pening now,” said Congressman Scott Peters. “The
Clean Power Plan, Paris Climate Agreement, and
extension of renewable tax credits continue to en-
courage private sector investment in clean energy
to reduce emissions and mitigate climate change.
The success of the HERO Program is proof that we
don’t have to choose between a clean environment
and a prosperous economy.”
A wide range of jobs contribute to fulfilling a home-
owner order for new solar panels, an upgraded heat-
ing and air conditioning system, or a water-saving,
artificial turf installation. By stimulating home reno-
vation activity, PACE financing drives job creation.
And because the work is done locally, contractors
and support and administrative personnel typically
feed their earnings back into their communities,
which benefits other local businesses. Jobs created
through HERO tend to be long-term, family-wage
earning positions.
A recent study conducted by nationally-recognized
housing economist Laurie Goodman showed that,
on average, homes with HERO improvements sell at
a price premium that can range from $199 to more
than $8,800. That means energy and water projects
recover and often exceed the investment, compared
to recent studies showing popular kitchen and bath-
room remodels recover only 58 percent to 66 per-
cent of their costs. Homeowners may also benefit
immediately from efficiency-oriented improvements
through lower utility bills and potential tax benefits.
The HERO Program has received numerous awards,
including the Governor’s Environmental and Eco-
nomic Leadership Award, the Urban Land Institute
Best of the Best, and the Southern California As-
sociation of Governments President’s Award for Ex-
cellence. Taking part in the HERO Program is 100
percent voluntary for both jurisdictions and property
owners. The program is cost neutral to participat-
ing local governments. The HERO Program has now
been adopted by 370 communities in California,
within 37 counties, and has funded more than $1
billion in efficiency upgrades since December 2011.
