SAN FRANCISCO—A recent San Francisco Board of Supervisors vote revives a program that gives local homeowners access to clean-energy programs that could help make energy- and water-saving renovations affordable for them. The Board voted to make the HERO Property Assessed Clean Energy program available to local residents.

The vote returns residential PACE financing to San Francisco, the first major city to embrace the idea. It also revives GreenFinanceSF, a program that gives local homeowners access to HERO and two other PACE providers. Applications for GreenFinanceSF begin in Spring 2015.

“HERO will make it easy and affordable for San Francisco homeowners to reduce carbon pollution and cut energy costs,” says Blair McNeill, VP of community development for Renovate America and the HERO program. “San Francisco's inspiring commitment to implementing a PACE program sets a strong example for cities in California and across the country.”

HERO, which stands for Home Energy Renovation Opportunity, provides long-term, competitive financing for green renovations through an additional property tax assessment. Payments are made through the property-tax bill for up to 20 years, and interest is tax deductible. The HERO program currently finances 95% of all residential PACE projects.

PACE overcame initial concerns from federal housing authorities that stalled San Francisco's launch of the innovative program four years ago. PACE programs have been active for several years in dozens of Southern California cities. San Francisco's new approval of the program underscores PACE's growing momentum in Northern California. HERO, for example, has been approved by several communities across San Mateo, Contra Costa, Alameda and Sonoma County in recent months.

According to Mark Farrell, San Francisco's District 2 supervisor, “GreenFinanceSF will further cement San Francisco's national role as a leader in reducing the adverse effects of climate change and make it easy for residential property owners in our neighborhoods to make energy-efficiency and water-conservation upgrades to their homes while creating good, local jobs on local projects.”

PACE programs are now flourishing in 31 states and have become a cornerstone of America's push for cleaner power and energy independence. They have been especially successful in California where, for example, the HERO program has been adopted by more than 225 communities and helped to fund more than 22,000 residential projects totaling more than $420 million in financing. The program also spurs local job creation by increasing demand for contractor services. HERO has helped to create more than 3,500 jobs in the state since its launch in December 2011.

A wide variety of efficiency products are available to property owners through the HERO program. Some of its most-popular products include water-saving technologies, solar power-panel installations, whole-home heating and cooling systems, energy-saving windows and doors, roofing and insulation.

HERO also has more than 60 product lines, some of which focus on helping homeowners save water during this extended drought, including high-efficiency toilets, faucets and showerheads; drip irrigation systems; rainwater catchment systems; gray water systems; and artificial turf and drought-tolerant landscaping. Participation in HERO is 100% voluntary for both local government agencies and property owners and is cost neutral for jurisdictions. A growing number of California cities and counties are partnering with multiple PACE providers to increase financing choices available to consumers.

Stay tuned for an exclusive interview with Blair McNeill in which he discusses the impact of these financing programs on San Francisco residents and neighboring markets.

Instant Insights /

Clean Energy Program Returns to Residents

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