Loan program helps Stanislaus area homes and businesses conserve energy

A new loan program helps with energy and water conservation projects at homes and businesses in seven cities in and near Stanislaus County.

The program, detailed Tuesday at a news conference in Modesto, allows borrowers to repay the money through their property tax bills over as many as 20 years. The low-interest loans can go for solar panels, insulation, energy-efficient air conditioning, low-flow faucets and dozens of other projects.

The program – Home Energy Renovation Opportunity, or HERO – aims to create jobs for installers and other workers while reducing utility bills and protecting the environment.

“With this program, the green economy has definitely arrived in Modesto,” City Councilman Tony Madrigal said at the Tenth Street Place event.

The program is up and running in Modesto, Turlock, Oakdale, Waterford, Newman, Atwater and Tracy, as well as unincorporated parts of Merced County. Riverbank, Ripon, Stockton and the city of Merced could join soon.

The local governments bear none of the costs. The financing is arranged through HERO, a private outfit that has arranged about $345million in loans in 202 California locales since 2011.

Some of the improvements can be pricey – several thousand dollars for air conditioning, even more for panels that generate power from the sun. Utility rebates and federal tax credits can help on some projects, but HERO’s leaders see a need for a bigger boost.

Borrowers must use approved contractors to carry out the projects. It might be drip irrigation or artificial turf in the backyard, efficient water and space heating inside, or sealing of cracks to keep drafts out of buildings.

“The beauty of HERO is that property owners can make choices that make sense for their property,” said Matt Messina, community relations manager for HERO.

The interest rates were not specified, but they are “competitive,” according to a Q&A from HERO. The loans can be for five, 10, 15 or 20 years. The repayments are separate assessments on property tax bills, which go out twice a year.

Thynk Solar , a Modesto-based installer, took part in the news conference. Zach Downs, vice president for sales, said HERO could help the company add to its workforce. “That’s really exciting to us, to be able to hire individuals in the local community,” he said.

Also taking part was J.H. Simpson Co., a Stockton-based installer of heating, air conditioning and plumbing in the Northern San Joaquin Valley and central Sierra Nevada. “This gives you the option to save on your (electricity) bill each month, and it pays for itself, which is nice,” President Mike Lawson said.

Modesto City Councilwoman Jenny Kenoyer said the program will especially benefit seniors by trimming their utility costs and adding to their home values. “They worked hard and paid off their homes, but their income doesn’t allow them to fix their homes up,” she said.

Modesto joined the program in July and already has had about $1.5million in loans. Mayor Garrad Marsh said he hopes it rises to $150million.

“It’s sustainability for our community, and I really look forward to it,” he said.

This story was originally published October 21, 2014 at 7:11 PM with the headline "Loan program helps Stanislaus area homes and businesses conserve energy."