Local Energy Efficiency Program Spurs 'Millions Of Dollars' In Economic Activity, WRCOG Official Says

The first six months of a program that enables western Riverside County property owners to upgrade their homes with energy-efficient products and renovations through low-cost financing resulted in the approval of 1,200 projects collectively valued at $25 million, it was announced today.

In January, the Western Riverside Council of Governments implemented the "Home Energy Renovation Opportunity" -- HERO -- program, under which homeowners can fund the installation of solar power equipment, skylights, new insulation and other products and modifications by rolling the costs into their future property tax bills.

"Bringing HERO to western Riverside County has been a huge boon to our community," said WRCOG Executive Committee Chair Jim Hyatt of Calimesa.

"It has spurred millions of dollars in new economic activity ... by helping property owners to make needed improvements without laying out a lot of money all at once," he said. "These investments help property values, create demand for contractor services and help us to meet state mandates to reduce regional energy use."

WRCOG, which represents 17 cities within the county, partnered with San Diego-based Renovate America Inc., a municipal financing concern, to establish the HERO program.

Any homeowner with at least 10 percent equity in his or her property is eligible to apply. HERO loans can pay for basic weatherization of a residence, setting up wind turbines or photovoltaic cells for power, more efficient heating, ventilation and air conditioning systems, even door replacements, according to the program website, www.wrcog.herofinancing.com.

Approved applicants can amortize loan repayments over 5 to 20 years. The costs are added to annual property tax assessments and can be deducted from state and federal income taxes. If a home is sold, the outstanding loan balance transfers to the new owner.

Applicants' credit scores are not factored into a loan decision. However, individuals whose properties are in foreclosure or bankruptcy will not be approved, according to the website.

More than 200 contracts are participating in the HERO program. They can be found on the website.

According to WRCOG, the HERO program is expected to generate up to 4,000 jobs and conserve about 15 million kilowatt-hours locally in the coming years.

State legislation passed in 2008 laid the groundwork for the program and others like it elsewhere in California.