POWER PURCHASE METHODS, AGREEMENTS AND FINANCIAL INSTRUMENTS FOR TAX-ADVANTAGED FINANCING RESIDENTIAL RENEWABLE ENERGY EQUIPMENT

• US 20090024541A1
• Filed: 07/20/2007
• Published: 01/22/2009
• Est. Priority Date: 07/20/2007
• Status: Abandoned Application

• Current Assignee: Clean Power Finance, Inc. (Spruce Finance, Inc.)
• Original Assignee: Clean Power Finance, Inc. (Spruce Finance, Inc.)
• Inventors: Kremen, Gary
• Application Number:
  US11/781,127
• Publication Number:
  US 20090024541A1
• Time in Patent Office: Days
• US Class Current: 705/36.T
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/10 Tax strategies
• CPC Class Codes: Y04S 10/50 Systems or methods supporting the power network operation or management, involving a certain degree of interaction with the load-side end user applications

Abstract

A business method is disclosed for tax-advantaged financing renewable energy consumer premises equipment (CPE) for installation and operation on a residential premises of a residential consumer. The method comprises (a) agreeing to supply power generated by the renewable energy CPE to the residential premises of the residential consumer and (b) taking a real property security interest in a primary residence of the residential consumer, whereby the real property security interest secures payments for the power supplied to the residential consumer.

Claims

1. A business method for tax-advantaged financing renewable energy consumer premises equipment (CPE) for installation and operation on or adjacent to a residential premises of a residential consumer, the method comprising:

(a) agreeing to supply power generated by the renewable energy CPE to the residential premises of the residential consumer; and

(b) taking a real property security interest in a primary residence of the residential consumer, whereby the real property security interest secures payments for the power supplied to the residential consumer.

2. The business method of claim 1 wherein agreeing is part of an agreement between an investor and a residential consumer.

3. The business method of claim 1 wherein agreeing includes agreeing to supply the power for a period of time.

4. The business method of claim 1 wherein agreeing includes agreeing to supply the power for a period of time at a flat rate or a rate based on an index.

5. The business method of claim 1 wherein the residential consumer premises includes the primary residence of the residential consumer.

6. The business method of claim 1 further comprising leasing the renewable energy CPE to the residential consumer for the period of time, prior to agreeing to supply power.

7. The business method of claim 1 further comprising purchasing the renewable energy CPE.

8. The business method of claim 7 further comprising obtaining a loan for purchasing the renewable energy CPE.

9. The business method of claim 8 further comprising making incremental payments to repay the loan.

10. The business method of claim 9 further comprising taking a U.S. Federal and/or State tax deduction for the portion of each payment that represents interest.

11. The business method of claim 1 wherein the interest is imputed interest under the agreement.

12. The business method of claim 1 wherein the interest is explicit interest under the agreement.

13. The business method of claim 8 further comprising taking a tax deduction for the depreciation of the renewable energy CPE.

14. The business method of claim 8 further comprising receiving a tax credit for the purchase of the CPE.

15. The business method of claim 14 wherein receiving a tax credit includes calculating a percentage of a gross price of the CPE as the tax credit.

16. The business method of claim 15 wherein the percentage is approximately 30%.

17. The business method of claim 1 wherein the agreeing to supply power and taking a real property security interest is performed by a PPA investor.

18. The business method of claim 8 further comprising carrying over loss of the life of the loan.

19. The business method of claim 1 further comprising making payments by the residential consumer for power generated by the renewable energy CPE.

20. The business method of claim 19 further comprising taking a tax deduction by the consumer for a portion of the payments that represent interest.

21. The business method of claim 1 further comprising receiving payments from the residential consumer for power generated by the CPE.

22. The business method of claim 1 wherein taking the real property security interest includes attaching the renewable energy CPE and perfecting the security interest in the renewable energy CPE.

23. A business method for financing renewable energy consumer premises equipment (CPE) by a consumer for power generation at a consumer premises, the method comprising:

creating an agreement wherein (1) a residential consumer agrees to purchase power generated by the renewable energy from the entity and (2) the residential consumer agrees to grant the entity a real property security interest in a primary residence of the residential consumer.

24. The business method of claim 23 wherein creating the agreement includes creating a provision in which the residential consumer agrees to make payments to the entity periodically for a period of time at a set rate for the power.

25. The business method of claim 24 wherein one or more of the payments includes an interest portion that is tax deductible under U.S. law to the residential consumer.

26. The business method of claim 25 wherein the interest is imputed interest under the agreement.

27. The business method of claim 25 wherein the interest is explicit interest under the agreement.

28. The business method of claim 23 wherein creating the agreement includes creating a financial instrument.

29. The business method of claim 23 wherein creating the agreement includes creating a provision in which the entity leases the renewable energy CPE to the consumer.

30. The business method of claim 23 wherein the consumer premises includes the primary residence of the residential consumer.

31. The business method of claim 23 further comprising obtaining a loan for purchasing the CPE by the entity.

32. The business method of claim 31 further comprising making incremental payments by the entity to repay the loan.

33. The business method of claim 32 further comprising taking a tax deduction for any portion of each payment that represents interest.

34. The business method of claim 31 further comprising taking a tax deduction for the depreciation of the renewable energy CPE.

35. The business method of claim 31 further comprising receiving a tax credit for the purchase of the CPE.

36. The business method of claim 35 wherein receiving a tax credit includes calculating a percentage of a gross price of the CPE as the tax credit.

37. The business method of claim 36 wherein the percentage is approximately 30%.

38. The business method of claim 23 wherein the entity is a PPA investor.

39. The business method of claim 23 further comprising making payments by the residential consumer to the entity for the power generated by the renewable energy CPE.

40. The business method of claim 23 further comprising taking a tax deduction by the residential consumer for a portion of the payments that represent interest.

41. The business method of claim 40 further comprising creating a flow through entity by the PPA investor for tax purposes.

42. An agreement financing renewable energy consumer premises equipment (CPE) by a residential consumer for power generation at a residential consumer premises, the agreement comprising:

a provision wherein the residential consumer agrees to purchase power from the entity, the power being generated by the renewable energy CPE operating on the residential consumer'"'"'s premises; and

a provision wherein the residential consumer grants the entity a right to take a real property security interest in a primary residence of the residential consumer.

43. The agreement of claim 42 wherein the agreement is a financial instrument.

44. The agreement of claim 42 further comprising a provision wherein the residential consumer agrees to lease the renewable energy CPE from the entity.

45. The agreement of claim 42 further comprising a provision wherein the residential consumer agrees to make periodic payments to the entity for power generated by the renewable energy CPE.

46. The agreement of claim 42 wherein the real property security interest secures the payments for the power.

47. The agreement of claim 45 wherein one or more payments includes an interest portion.

48. The agreement of claim 47 wherein the interest portion of the payments are tax deductible under U.S. law.

49. The agreement of claim 43 wherein the entity is a PPA Investor.

50. The agreement of claim 43 further comprising a provision wherein the residential consumer agrees to purchase power for a period of time at a predetermined rate.

51. The agreement of claim 50 wherein the predetermined rate is fixed.

57. The business method of claim 50 further comprising leasing the renewable energy CPE to the residential consumer prior to making payments to the entity.

52. A business method for financing renewable energy consumer premises equipment (CPE) for installation and operation on a consumer premises of a residential consumer, the method comprising creating an agreement wherein:

(a) a PPA Investor agrees to install the renewable energy CPE on the consumer premises;

(b) the PPA Investor agrees to provide power to the residential consumer for a period of time, the power being generated by the renewable energy CPE;

(c) the residential consumer agrees to make periodic payments to the PPA Investor for the power during the period of time, wherein one or more payments includes an interest portion that is tax deductible to the residential consumer under U.S. law; and

(d) the residential consumer grants the PPA Investor a right to take a real property security interest in a primary residence of the residential consumer to secure the payments.

53. The business method of claim 52 wherein the agreement is a power purchase agreement.

54. The business method of claim 53 wherein the power is a set rate for purchase.

55. The business method of claim 52 wherein creating the agreement includes a provision wherein the PPA Investor leases the renewable energy CPE to the residential consumer.

60. The method of claim 53 wherein creating an agreement includes creating a provision wherein the consumer grants the entity the right to a real property security interest in the primary residence of the residential consumer.

56. A business method for receiving financing for renewable energy consumer premises equipment (CPE) for providing power to a premises of a residential consumer, the method comprising:

(a) providing a real property security interest in a primary residence of the residential consumer to an entity; and

(b) making payments to an entity for power generated by the renewable energy CPE on the residential consumer'"'"'s premises, wherein one or more payments includes an interest portion that is tax deductible to the residential consumer under U.S law.

58. A system for receiving financing renewable energy consumer premises equipment (CPE) by a consumer for power generation at a consumer premises, the system comprising:

a renewable energy CPE owned by an entity; and

an agreement between the consumer and the entity;

(1) enabling an entity to install the CPE of the entity on the residential consumer premises;

(2) requiring the consumer to purchase power from the entity that is generated by the CPE; and

(3) granting the entity a real property security interest in the primary residence of the residential consumer.

59. A business method for financing renewable energy consumer premises equipment (CPE) by a consumer for power generation at a residential consumer premises, the method comprising:

creating a power purchase agreement (1) wherein a residential consumer agrees to purchase power generated by the renewable energy CPE from the entity, (2) wherein the residential consumer agrees to make payments to the entity for the power, and (3) wherein one or more payments comprises an interest portion.

61. A business method for tax-advantaged financing renewable energy consumer premises equipment (CPE) for providing power to a residential premises of a residential consumer, the method comprising:

(a) agreeing to supply power generated by the renewable energy CPE to the residential premises of the residential consumer; and

(b) taking a real property security interest in real property of the residential consumer, whereby the real property security interest secures payments for the power supplied to the residential consumer.