You are leaving out a significant cost of the HERO programs - fees. These fees add around 7% of the amount financed, so for example a $20,000 solar install is financed at $21,400. The CaliforniaFIRST Property Owner Handbook lists the following Upfront Costs: Program-Related Fees Lien Recording Fees Reserve Fees Capitalized Interest Administrative Fee (Annual) I found it very hard to find the actual financing terms on the website. It seems these are purposefully obfuscated until an application if filed. As others have said, there are better options than HERO.
I saw a contract about 3 weeks ago using a HERO loan and the up front was 15% + other stuff. They have some advantages, but they may not be cheap. Read everything and think like the bank. Caveat Emptor.
Agree, not a good first choice. I would only go with this type of loan if my credit was bad. Those fees up front kill any tax write off they give you. If they would get rid of those fees I would jump on it in a second.
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