Methods for financing renewable energy systems

• US 7,904,382 B2
• Filed: 03/11/2008
• Issued: 03/08/2011
• Est. Priority Date: 03/11/2008
• Status: Active Grant

• Current Assignee: Tesla Inc.
• Original Assignee: SolarCity Corporation (Tesla Inc.)
• Inventors: Arfin, David
• Primary Examiner(s): Colbert; Ella
• Assistant Examiner(s): Shaikh; Mohammad Z
• Application Number:
  US12/046,236
• Publication Number:
  US 20090234750A1
• Time in Patent Office: 1,092 Days
• Field of Search: 705 35- 42
• US Class Current: 705/38
• CPC Class Codes: G06Q 30/0601 Electronic shopping [e-shopping]
• CPC Class Codes: G06Q 30/0623 Item investigation
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 99/00 Subject matter not provided for in other groups of this subclass
• 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
• CPC Class Codes: Y04S 50/10 Energy trading, including energy flowing from end-user application to grid

Abstract

A business method for financing renewable energy systems includes offering a home loan to a homeowner in which the interest payable by the homeowner are tax deductable. A lease is also offered to the homeowner for the installation and use of a renewable energy system. A deposit of cash proceeds from the home loan is put into a trust held by an escrow agent for the single purpose of paying lease payments for the lease as each payment becomes due. Such that the proceeds from the home loan are effectively used to defease the debt represented by the lease.

Claims

1. A method for financing renewable energy systems, comprising:

displaying by a computing system, home loan options and lease options for a renewable energy system;

receiving, by the computing system, a first selection of a home loan for a homeowner from the loan options;

receiving, by the computing system, a second selection of a lease for the homeowner from the lease options;

arranging the home loan for a homeowner in which the interest payable by the homeowners is at least partly tax deductable;

offering the lease to the homeowner for the renewable energy system;

increasing the profits of selling said renewable energy system by obtaining more favorable lease terms and decisions from a lessor with particular internal rates of return (IRR) decision criteria as a result of defeasing the lease debt;

determining, by the computing system, a deposit of cash proceeds from said home loan into a trust held by an escrow agent for the single purpose of paying lease payments for said lease as each payment becomes due;

receiving a plurality of lease payments for said lease when each payment becomes due thereby seasoning said home loan such that the risk of any holder-in-due course reduced thereby;

selling said home loan to said holder-in-due-course;

selling any renewable energy credits (REC'"'"'s) that obtain from installing or operating said renewable energy system; and

increasing business operating profits with any tax incentives that obtain from installing or operating said renewable energy system;

wherein, the proceeds from said home loan are effectively used to defease the debt represented by said lease.

2. The method of claim 1, further comprising:

selecting a home loan which is interest only.

3. The method of claim 1, wherein the offering the loan includes an energy loan and the offering of the lease includes a power purchase agreement.

4. The method of claim 1 further comprising:

securitizing said home loan in a portfolio that includes correcting for loans that do not perform to a particular standard.

5. The method of claim 1, further comprising:

increasing the profits of selling said renewable energy system by obtaining more favorable lease terms and decisions from a lessor with particular internal rates of return (IRR) decision criteria as a result of defeasing the lease payment obligations.

6. The method of claim 1, further comprising:

pre-paying in present value money any residual due at the end of a full term of said lease in future value (FV) money.

7. The method of claim 1, wherein the offering of said lease is such that said lease qualifies for depreciation and capital gains and losses for at least said homeowner.

8. The method of claim 1, wherein:

the arranging of said home loan and the offering of said lease are contemporaneous and prerequisite to other steps of the method of claim 1.

9. The method of claim 1, wherein:

the arranging of said home loan and the offering of said lease are selectable from a menu of varieties of loans and leases.

10. The method of claim 1, wherein the debt is defeased, the debt is no longer reported as a liability on a balance sheet.

11. The method of claim 1, further comprising paying, by the computing system, a plurality of lease payments for said lease when each payment becomes due.

12. A non-transitory, computer-readable storage medium containing instructions for controlling a computer system, wherein the instructions, when executed, cause the computer system to be operable to:

display home loan options and lease options for a renewable enemy system;

receive a first selection of a home loan for a homeowner from the home loan options;

receive a second selection of a lease for the homeowner from the lease options;

arrange the home loan for a homeowner in which the interest payable by the homeowner is at least partly tax deductable;

offer the lease to the homeowner for the renewable energy system;

increase the profits of selling said renewable system by obtaining more favorable lease terms and decisions from a lessor with particular internal rates of return (IRR) decision criteria as a result of defeasing the lease debt;

determine a deposit of cash proceeds from said home loan into a trust held by an escrow agent for the single purpose of paying lease payments for said lease as each payment becomes due;

receive a plurality of lease payments for said lease when each payment becomes due thereby seasoning said home loan such that the risk of any holder-in-due-course is reduced thereby;

sell said home loan to said holder-in-due-course;

sell any renewable energy credits (REC'"'"'s) that obtain from installing or operating said renewable energy system; and

increase business operating profits with any tax incentives that obtain from installing or operating said renewable energy system;

wherein, the proceeds from said home loan are effectively used to defease the debt represented by said lease.

13. The computer-readable storage medium of claim 12, wherein the debt is defeased, the debt is no longer reported as a liability, on a balance sheet.

14. The computer-readable storage medium of claim 13, wherein the instructions, when executed, cause the computer system to be operable to pay a plurality of lease payments for said lease when each payment becomes due.