Renovate America, the leading provider of residential Property Assessed Clean Energy (PACE) financing in the U.S. today announced it raised $50 million in growth equity from new and existing investors. Valor Equity Partners led the round, which also included Macquarie, RockPort Capital and Spring Creek. Renovate America partners with local municipalities to provide the HERO Financing Program to property owners, who in turn use the program to finance a wide variety of products to lower utility bills including: solar power; energy efficient HVAC, windows, roofing; and water-saving products such as artificial turf. The company has financed over $250 million in HERO residential energy-efficient improvement projects to date, which are estimated to save homeowners $530 million in lower utility bills.
“HERO has helped thousands of homeowners invest in their home to save energy and water,” said JP McNeill, CEO of Renovate America. “We are fortunate to partner with over 165 cities and counties who have made HERO available to their constituents. In addition to helping homeowners save millions of dollars, HERO is helping communities create thousands of local jobs, lower mortgage foreclosures, stimulate local economies and lower emissions. This additional equity investment will enable us to bring HERO to more cities and counties.”
HERO is made possible by PACE legislation that provides an innovative way for property owners to finance energy- and water-efficiency improvements through their property tax payments. Borrowers can choose the term of their loan (5-20 years), and interest on the payments is tax deductible. Additionally, PACE assessments can transfer to the new owner when the property is sold in most cases.
Renovate America provides funding, administration, technology, training, customer support and a full service call center that assists contractors and property owners with the application and approval process. The company’s software platform provides homeowners an easy way to submit applications and fill out all the necessary paperwork and documentation. HERO Protect, provides all customers with consumer protections to ensure homeowners are satisfied. HERO Pro, assists contractors with estimating and document processing. In addition, HERO Gov provides municipal leaders a new way to track the number of projects, energy savings, environmental impact, and local jobs created in real-time.
“The HERO Program offers comprehensive services that combines funding, software and consumer protections,” said Scott McKinlay, Executive VP at Renovate America. “That combination of services makes home improvements available to more property owners more safely and affordably than ever before.”
HERO has been adopted by more than 165 California cities including San Diego, San Jose, Riverside, Anaheim, Fresno, and San Bernardino, among others. The program has financed more than $250 million in projects and created more than 2,300 jobs since it launched in December, 2011.
The HERO program has received more than 10 awards nationally including the Governor’s Environmental and Economic Leadership Award in California, the Urban Land Institute Best of the Best, and the Southern California Association of Governments President’s Award for Excellence.