U.S. patent application number 11/958346 was filed with the patent office on 2008-07-17 for methods, systems and agreements for increasing the likelihood of repayments under a financing agreement for renewable energy equipment.
Invention is credited to David G. Coleman, Gary Kremen.
Application Number | 20080172330 11/958346 |
Document ID | / |
Family ID | 39618510 |
Filed Date | 2008-07-17 |
United States Patent
Application |
20080172330 |
Kind Code |
A1 |
Kremen; Gary ; et
al. |
July 17, 2008 |
METHODS, SYSTEMS AND AGREEMENTS FOR INCREASING THE LIKELIHOOD OF
REPAYMENTS UNDER A FINANCING AGREEMENT FOR RENEWABLE ENERGY
EQUIPMENT
Abstract
A business method is disclosed of increasing the probability of
timely receiving payment for financing renewable energy consumer
premises equipment (CPE) by a consumer for power generation at a
consumer premises, the renewable energy CPE adapted to deliver
power onto a power grid. The method comprises creating an agreement
between a consumer and an entity financing renewable energy CPE,
wherein creating the agreement includes creating a provision that
allows the entity to control power at the consumer premises if a
default of the agreement by the consumer occurs.
Inventors: |
Kremen; Gary; (San Diego,
CA) ; Coleman; David G.; (Sacramento, CA) |
Correspondence
Address: |
PERKINS COIE LLP
P.O. BOX 2168
MENLO PARK
CA
94026
US
|
Family ID: |
39618510 |
Appl. No.: |
11/958346 |
Filed: |
December 17, 2007 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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11750941 |
May 18, 2007 |
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11958346 |
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11653167 |
Jan 12, 2007 |
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11750941 |
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11653052 |
Jan 12, 2007 |
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11653167 |
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11653043 |
Jan 12, 2007 |
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11653052 |
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11652712 |
Jan 12, 2007 |
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11653043 |
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11653044 |
Jan 12, 2007 |
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11652712 |
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11653325 |
Jan 12, 2007 |
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11653044 |
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Current U.S.
Class: |
705/40 ;
705/1.1 |
Current CPC
Class: |
Y04S 10/50 20130101;
Y04S 50/12 20130101; G06Q 20/102 20130101; G06Q 40/06 20130101;
G06Q 40/02 20130101; Y04S 10/58 20130101; G06Q 50/06 20130101; G06Q
40/00 20130101 |
Class at
Publication: |
705/40 ;
705/1 |
International
Class: |
G06Q 40/00 20060101
G06Q040/00 |
Claims
1. A system for increasing a likelihood of timely receiving payment
for financing renewable energy consumer premises equipment (CPE) by
a consumer for power generation at a consumer premises, the system
comprising: a renewable energy CPE installed at a consumer premises
for power generation, the renewable energy CPE coupled to a power
grid to enable delivery of power generated by the renewable energy
CPE onto the power grid; a control device operable to control power
at the consumer premises; an agreement between the consumer and a
lender enabling the consumer to purchase the renewable energy CPE
with a loan provided by the lender to the consumer and enabling the
lender to control power at the consumer premises by operating the
control device.
2. The system of claim 1, wherein the control device can be
operated remotely.
3. The system of claim 1, wherein the control device is coupled
between a main service panel on the consumer premises and the
renewable energy CPE, and the control device can be used to
disconnect the renewable energy CPE from the main service panel
according to terms defined at least in part by the agreement.
4. The system of claim 2, wherein the control device is coupled
between a main service panel on the consumer premises and the power
grid, the control device being operable to disconnect the consumer
premises from the power grid.
5. A system comprising: a renewable energy consumer premises
equipment (CPE) installed at a consumer premises for power
generation and coupled to a power grid to enable power delivery
onto the power grid, the CPE purchased by the consumer with a loan
provided by a lender according to an agreement granting the lender
rights to control power at the consumer premises; a main service
panel located at the consumer premises; a first control device
coupled between the CPE and the main service panel, the first
control device operable by the lender according to the agreement; a
second control device coupled between the main service panel and a
power grid providing power to the consumer premises, the second
control device operable by the lender according to the
agreement.
6. The system of claim 5, wherein the first control device is
operable to disconnect the CPE from the main service panel.
7. The system of claim 5, wherein the second control device is
operable to disconnect the main service panel from the power
grid.
8. A business method of increasing the probability of timely
receiving payment for financing renewable energy consumer premises
equipment (CPE) by a consumer for power generation at a consumer
premises, the renewable energy CPE adapted to deliver power onto a
power grid, the method comprising: providing a loan to a consumer
by a lender for the consumer's purchase of renewable energy CPE;
making payments incrementally by a consumer to the lender over a
period of time to repay the loan; and controlling the power
generated by the renewable energy CPE.
9. The business method of claim 8, further comprising controlling
the power delivered by the power grid.
Description
CROSS-REFERENCE TO RELATED APPLICATIONS
[0001] The present invention claims priority to and is a divisional
patent application of U.S. Ser. No. 11/750,941, filed May 18, 2007,
entitled METHODS, SYSTEMS AND AGREEMENTS FOR INCREASING THE
LIKELIHOOD OF REPAYMENTS UNDER A FINANCING AGREEMENT FOR RENEWABLE
ENERGY EQUIPMENT which is a continuation-in-part of patent
applications: (1) U.S. application Ser. No. 11/653,167, filed Jan.
12, 2007, entitled SYSTEMS, METHODS AND FINANCIAL INSTRUMENTS FOR
RENEWABLE ENERGY CONSUMER PREMISES EQUIPMENT FINANCING, (2) U.S.
application Ser. No. 11/653,052, filed Jan. 12, 2007, entitled
BILLING AND PAYMENT METHODS AND SYSTEMS ENABLING CONSUMER PREMISES
EQUIPMENT, (3) U.S. application Ser No. 11/653,043, filed Jan. 12,
2007, entitled METHODS FOR COST REDUCTION AND UNDERWRITING
CONSIDERATIONS FOR FINANCING RENEWABLE ENERGY CONSUMER PREMISES
EQUIPMENT (CPE), (4) U.S. application Ser. No. 11/652,712, filed
Jan. 12, 2007, entitled METHOD FOR UNDERWRITING THE FINANCING OF
SOLAR CONSUMER PREMISES EQUIPMENT, (5) U.S. application Ser. No.
11/653,044, filed Jan. 12, 2007, entitled SYSTEMS AND METHODS OF
REDUCING FINANCING COSTS FOR RENEWABLE ENERGY CONSUMER PREMISES
EQUIPMENT and (6) U.S. application Ser. No. 11/653,325, filed Jan.
12, 2007, entitled METHODS, SYSTEMS AND FINANCIAL INSTRUMENTS FOR
FINANCING RENEWABLE ENERGY CONSUMER PREMISES EQUIPMENT, all of such
applications being incorporated by reference herein.
STATEMENT REGARDING FEDERALLY SPONSORED RESEARCH OR DEVELOPMENT
[0002] Not applicable.
THE NAMES OF THE PARTIES TO A JOINT RESEARCH AGREEMENT
[0003] Not applicable.
INCORPORATION-BY-REFERENCE OF MATERIAL SUBMITTED ON A COMPACT
DISC
[0004] Not applicable.
BACKGROUND OF THE INVENTION
[0005] The present invention relates to financing renewable energy
equipment and more particularly to the ability to increase the
likelihood that a consumer will repay a loan for such renewable
energy equipment in accordance with an agreement to pay such a loan
or will make payments for power generated by renewable energy
equipment in accordance with an agreement for the purchase of such
power.
BRIEF DESCRIPTION OF THE INVENTION
[0006] Electricity or power is an essential part of modern life. In
residences, in businesses, in institutions and in other locations,
consumers use electricity in a variety of ways. Utilities typically
supply power to consumers as needed. FIG. 1 illustrates a diagram
of a power system of the prior art. As is shown, the utilities
deliver power generated by power plants through a network of
transmission and distribution lines. This network is hereinafter
referred to as the "power transmission and distribution grid," "the
electric grid," "the grid" or "power grid." Electricity production,
demand and costs are discussed in detail in numerous publications.
For this reason, these details will be described herein. Suffice it
to say, renewable energy is a practical and environmentally
conscious alternative to traditional utility production. One of the
more desirable renewable sources is solar power. For one thing,
local solar energy can essentially be harnessed in most developed
country locations with solar access. For another, solar equipment
consumes no fossil fuels and generates no air pollutants. The use
of solar power is generally regarded as environmentally safe.
Utilities in many States are required (or voluntarily do so) for
public policy reasons to credit or actually buy excess power
generated by a consumer. General rules and requirements of such a
purchase are not discussed herein. Suffice it to say, solar energy
is quite desirable and beneficial to a consumer. Unfortunately,
solar power equipment is quite expensive for a consumer. While the
Federal and State incentives are significant, the remaining costs
for the purchase of solar equipment may be beyond the amount of
cash a consumer has on hand or wishes to commit.
[0007] To date, there are limited financing options for the
consumer of solar power equipment. These options are predominantly
based on traditional financing products known as a mortgage, a
secured loan in real property or deed of trust. Such products rely
on a security interest in the consumer/borrower's real property.
There are other financing options. Secured personal property loans
(sometimes referred to as chattel mortgages or loans) and unsecured
personal loans are also available for the purchase of solar
equipment. Secured personal property loans are typically secured by
the personal property. Unsecured loans are not secured at all.
[0008] There is yet another financing option available for the
consumer. It is known as a Power Purchase Agreement ("PPA"). There
are several varieties of a PPA. One example of a PPA is offered by
Citizenre company (see Domain page: renu.citizenre.com). In a
typical PPA arrangement such as that offered by Citizenre, a party
known as the PPA Investor purchases, installs and maintains solar
equipment on a consumer's premises. The PPA Investor owns the
equipment. In exchange for such equipment, the consumer agrees to
purchase power generated by the solar equipment for a period of up
to 25 years). A PPA may include a lease. Depending on the
arrangement a PPA might be treated as a capital lease or operating
lease. In a PPA, the consumer makes no investment, needs to perform
no repairs, need not wait for any rebates and locks in prices for
power. The PPA Investor also receives benefits from this
arrangement. The PPA Investor may receive financial benefits
including investment tax credits (ITC), accelerated depreciation,
rebates, subsidies and possibly other benefits (besides consumer
payments).
[0009] The financing options discussed above (loans, PPA, etc.)
unfortunately have disadvantages. The main disadvantage is that
there is really no means by which the lender or PPA investor (PPA
is a form of financing, in which the PPA investor is a lender) may
insure, or increase the likelihood, that the consumer will repay a
loan, i.e., make payments for power purchased under a PPA agreement
(both lender and PPA investor are also lending entities).
Currently, the only threat or incentive for timely payment is a
non-judicial foreclosure for real property, a judicial foreclosure
for real property repossession for personal property or a breach of
contract for violating the agreements behind a PPA. Traditionally,
foreclosure and/or repossession require taking possession
(physically) of the collateral in question. These procedures,
however, are time consuming and costly. For matters involving
personal property, a creditor may repossess (also known as
self-help) described collateral from a consumer without resorting
to the courts as long as it does not involve breaching the peace.
The Uniform Commercial Code (U.C.C.) Article 9 regulates the manner
in which secured creditors exercise self-help repossession to
recover collateral (goods) after a default. Some states have
enacted statutes governing notice requirements in consumer credit
transactions that may require the creditor to send notices in
connection with repossession.
[0010] For certain types of personal property such as automobiles,
there exists a method or mechanism by which a creditor may increase
his/her chances of receiving payments under specific financing
arrangements. The method or mechanism involves a starter interrupt
device. Passtime Corporation and Payment Protection Systems, Inc.
(See passtimeusa.com and ppsontime.com) are companies that offer
such devices. Such devices are used in automobile financing or
leasing agreements to ensure repayment. A starter interrupt device
merely prevents an owner or lessee from starting a vehicle until
he/she has made an incremental payment. The device functions to
"interrupt" electricity flow from vehicle starter to its ignition
(making the vehicle inoperable). There are different types of
starter interrupt devices. The more simple devices use activation
codes to permit vehicle use. A creditor supplies the codes after
the creditor receives a periodic payment from the owner/lessee.
More sophisticated devices incorporate GPS tracking technology and
other features. U.S. Pat. Nos. 6,195,648, 6,828,692, and 6,870,467
are examples of vehicle interruption devices/systems. The advantage
of using a starter interrupt devices is there is generally no
interaction between creditor (and its agents) and the consumer when
the device is used. A direct confrontation with the consumer is
therefore minimized. Consequently, the devices appear to reduce the
likelihood of a breach of the peace. State law ultimately
determines permitted use and operation.
[0011] Without the use of a starter device or other means to access
personal property remotely such as the PV system (that is subject
to financing), a lender will likely require direct access to the
subject property to prevent a consumer from using such property
until he or she has made the appropriate payments. In order to
directly access personal property, a lender may require the
permission, power or authorization to enter a consumer's premises
(real property) and/or disable the personal property of the
consumer to discontinue the use of such personal property.
[0012] Utilities, for example, typically have the power and
authority to enter the premises of a consumer and access the power
equipment and/or discontinue power supply in the event that a
consumer has failed to make a payment (utilities are required to
follow rules set forth by the State PUCs concerning shut-off). Such
power and authorization is provided in the published tariff
agreements between a utility and consumer for power supply. The
threat of utility service shut-off provides a real incentive to
make timely payments to a lender. The same incentive holds true for
the other companies including the telephone company. However,
lenders currently do not have the power and authorization, like a
utility, to enter a consumer's premises and access personal
property such as renewable energy CPE under the existing financing
arrangements between lender and consumer.
[0013] In short, starter interrupt devices appear to be quite
advantageous for a creditor involved in a vehicle financing
arrangement. However, there are currently no devices, systems or
methods used to enable the lender (e.g., creditor, PPA Investor)
under a financing agreement for renewable energy equipment to
increase the likelihood of receiving payments from a consumer.
Further, there is no means by which a lender has authorization to
access the renewable energy consumer premises equipment in the
event a consumer fails to make a period payment under the financing
arrangement.
[0014] It would be desirable to provide a method, system and/or
agreement that would overcome the disadvantages described
above.
SUMMARY OF THE INVENTION
[0015] A business method is disclosed of increasing the probability
of timely receiving payment for financing renewable energy consumer
premises equipment (CPE) by a consumer for power generation at a
consumer premises, the renewable energy CPE adapted to deliver
power onto a power grid. The method comprises creating an agreement
between a consumer and an entity financing renewable energy CPE,
wherein creating the agreement includes creating a provision that
allows the entity to control power at the consumer premises if a
default of the agreement by the consumer occurs.
[0016] An agreement is disclosed between a consumer and an entity
suitable for financing the purchase, installation, and/or
maintenance of consumer premises equipment (CPE) by the consumer,
the CPE suitable for installation and power generation upon a
consumer premises, the CPE adapted to deliver power onto a power
grid. The agreement comprises a provision including a right
provided to the entity to shut off power generated by the CPE in
the event a default of the agreement occurs.
[0017] A method is disclosed of financing a purchase of renewable
energy consumer premises equipment (CPE) by a consumer for power
generation at a consumer premises. The method comprises creating a
financial instrument supporting a loan for the purchase of the
renewable energy CPE by the consumer, wherein creating the
financial instrument includes creating a right to shut off the CPE
from generating power in the event a default of agreement by the
consumer occurs.
[0018] A business method is disclosed of enforcing payment of a
power purchase agreement for renewable energy using consumer
premises equipment (CPE) by a consumer for power generation at a
consumer premises, the CPE adapted to deliver power onto a power
grid. The method comprises creating a power purchase agreement
(PPA) in which a consumer purchase power from the entity generated
by the CPE for a period of time, wherein creating the PPA includes
creating a provision providing the entity with an easement to
permit access to the CPE and a right to shut off the CPE from
generating power when a default of the PPA occurs by the
consumer.
[0019] A business method is of increasing the probability of timely
receiving payment for financing renewable energy consumer premises
equipment (CPE) by a consumer for power generation at a consumer
premises, the renewable energy CPE adapted to deliver power onto a
power grid. The method comprises creating an agreement in which the
lender agrees to provide a loan to the consumer for the consumer's
purchase of the renewable energy CPE, wherein creating the
agreement includes creating a provision that allows the lender to
shut off power at the consumer premises if default of the agreement
by the consumer occurs; triggering a default of the agreement by
the consumer; and shutting off power generated by the CPE as a
result of the default.
[0020] A system is disclosed for increasing a likelihood of timely
receiving payment for financing renewable energy consumer premises
equipment (CPE) by a consumer for power generation at a consumer
premises. The system comprises a renewable energy CPE installed at
a consumer premises for power generation, the renewable energy CPE
coupled to a power grid to enable delivery of power generated by
the renewable energy CPE onto the power grid; a control device
operable to control power at the consumer premises; an agreement
between the consumer and a lender enabling the consumer to purchase
the renewable energy CPE with a loan provided by the lender to the
consumer and enabling the lender to control power at the consumer
premises by operating the control device.
[0021] A system is disclosed which comprises a renewable energy
consumer premises equipment (CPE) installed at a consumer premises
for power generation and coupled to a power grid to enable power
delivery onto the power grid, the CPE purchased by the consumer
with a loan provided by the lender according to an agreement
granting the lender rights to control power at the consumer
premises; a main service panel located at the consumer premises; a
first control device coupled between the CPE and the main service
panel, the first control device operable by the lender according to
the agreement; a second control device coupled between the main
service panel and a power grid providing power to the consumer
premises, the second control device operable by the lender
according to the agreement.
[0022] A business method is disclosed of increasing the probability
of timely receiving payment for financing renewable energy consumer
premises equipment (CPE) by a consumer for power generation at a
consumer premises, the renewable energy CPE adapted to deliver
power onto a power grid. The method comprises providing a loan to a
consumer by a lender for the consumer's purchase of renewable
energy CPE; making payments incrementally by a consumer to the
lender over a period of time to repay the loan; and controlling the
power generated by the renewable energy CPE.
BRIEF DESCRIPTION OF THE DRAWINGS
[0023] The accompanying drawings, which are incorporated herein and
constitute a part of the specification, illustrate embodiments of
the invention, and together with the general description given
above and the detailed description of the embodiments, serve to
explain the principals of the invention.
[0024] FIG. 1 illustrates a diagram of a prior art power
system.
[0025] FIG. 2 illustrates a block diagram of a power system
incorporating consumer premises equipment (CPE) for a real property
structure.
[0026] FIGS. 2A-B illustrates net and dual metering arrangements,
respectively.
[0027] FIG. 3 illustrates a block diagram of an agreement between
lender and consumer/borrower in accordance with an embodiment of
the present invention.
[0028] FIG. 4 is a flowchart illustrating the steps of the method
for contemplating shutting power off upon default in accordance
with an embodiment of the present invention.
DETAILED DESCRIPTION OF THE INVENTION
[0029] FIG. 1 is described above. FIG. 2 illustrates consumer
premises equipment 10 (also known or referred to as "CPE,"
"consumer premises equipment." "renewable energy consumer premises
equipment" and "renewable energy CPE") that resides on a
residential building, but may alternatively reside on a business,
institution or other real property. It is noted that many of the
terms used in this application are defined herein (including the
Appendix), and such definitions (meaning) shall control in any
conflict or inconsistency with a conventional definition or meaning
provided in any priority or other application or document.
According to the embodiment of FIG. 2, CPE 10 incorporates
renewable energy equipment that is used by the consumer for energy
generation. In this embodiment, CPE 10 includes solar components as
the renewable energy equipment (source). Alternatively, any
renewable equipment may be used such as wind, biomass or water
(hydroelectric) energy generation equipment as well as
non-renewable energy sources.
[0030] The solar components described herein are collectively known
as photovoltaic ("PV" or "solar") equipment (or system). In
general, there are two types of PV systems: systems that interact
with the utility power grid with no battery backup capability and
systems that interact with the power grid and include battery
backup. In addition, there are other systems that do not interact
with the grid. In the embodiment shown in FIG. 2, the PV system
(equipment) interacts with the power grid 32 but does not include a
battery backup. As a result, this system operates only when the
utility is available. This PV system will typically provide the
greatest amount of savings to a consumer per dollar of investment.
However, the system will shut down during an outage, and will
remain that way until utility power is restored. Note that the
consumer is a homeowner or resident for this discussion, but may
alternatively be a business, institution, entity or other user or
purchaser of power (electricity).
[0031] CPE 10 comprises several components including a PV
(photovoltaic) array 12 along with the appropriate mounting
equipment. PV array 12 is made up of PV modules, which are
environmentally sealed collections of PV cells. These cells convert
the sunlight into electricity. One of the most common PV modules is
5-25 square feet in size. Usually four or more smaller modules are
framed together by struts called a panel. A panel spanning 20-35
square feet in area may be used for more easily handling on a roof.
CPE 10 includes mounting and wiring systems used to integrate the
solar modules into the electrical systems of a residence or
alternatively a business, institution or other consumer.
[0032] CPE 10 includes (as part of the wiring system) PV array
circuit combiner 14, ground fault protector 16, DC fused switch 18
and DC/AC inverter 20 connected in series. PV array circuit
combiner 14 is connected to PV array 12. DC fused switch 18 is used
as over-current protection for the solar (PV) modules. Ground fault
protection 16 is a circuit breaker. Combiner 14 is used since PV
array 12 (modules) requires fusing for each module source circuit.
Some inverters alternatively include the fusing and combining
function within the inverter housing. Inverter 20 is designed to
take the DC power from PV array 12 and convert it into standard AC
power used by devices that consumes standard AC power.
[0033] CPE 10 further includes AC fused switch 22 and utility
switch 24 connected in series (and connected to DC/AC inverter 20).
AC fused switch 22 is used as a power disconnect (i.e., as an
over-current protective device (OCPD)). Utility switch 24 is used
by the utility to switch off PV array 12. Most utilities require a
visible-blade, lockable open switch or disconnect in the inverter's
output circuit. The utility switch 24 is usually located within
sight of the service-entrance meter for ease of locating by
emergency response people. It should be noted that CPE 10 may
include additional components or fewer components than described
herein depending on power and installation requirements. In
addition to the above shut off mechanisms (e.g., switches), power
shut off may be accomplished by disconnecting the leads of the
power grid from the CPE and capping such leads to ensure the safety
of those near the power leads.
[0034] The components of CPE 10 are connected to original
components including main service panel 26, consumer loads or usage
(or consumption) 28, meter 30 and a local segment of the utility
power grid 32. Specifically, utility switch 24 is fused and is
connected to main service panel 26. The maintenance service panel
26 includes among other things the residential circuit breakers.
Main panel 26 is coupled to the residential wiring and loads
28.
[0035] Meter 30 is coupled between power grid 32 and main service
panel 26. Meter 30 is a device for measuring electricity
consumption. In this instance, meter 30 is capable of net metering
(or other alternative metering schemes discussed below). This is
shown in FIG. 2A. CPE 10 is shown interconnected to power grid 32
to enable the consumer to feed any surplus or excess power
(electricity) to grid 32. Meter 30 will spin forward when power
(electricity) flows from power grid 32 into the residence and
backward when CPE 10 (solar components) produces surplus
electricity that is not immediately used. Excess power
(electricity) is "loaded" on power grid 32.
[0036] Utilities may require an agreement for consumers to qualify
for net-metering. This is known as net metering to those skilled in
the state of the art. In certain embodiments (similar to
embodiments shown in FIG. 2A herein), there might be two separate
meters as shown in FIG. 2B. In FIG. 2B, meter 36 and meter 38 are
shown in series. Meter 36 is used as a measuring device for power
consumed or used and meter 38 is used as a measuring device for
power generated by the consumer's CPE. This "dual metering"
convention may be desired by a consumer or required by a utility.
This is because in some cases, the purchase price of power is
different than the rate the utilities buy the power from the
consumer.
[0037] The solar components or equipment of CPE 10 that is subject
to or may be borrowed against (may be secured) includes PV array
12, circuit combiner 14, ground fault protector 16, DC switch 18,
DC/AC converter 20 and possibly other components including the
mounting equipment. Note that these components may be considered
fixtures depending on implementation and local laws.
[0038] In the embodiment shown in FIG. 2, there are additional
components used to shut off power in the event a consumer fails to
make an incremental payment to a lender. To this end, shut off
device 23 is coupled between utility switch 24 and main service
panel 26. Shut off device 23 has two functions. First, shut off
device 23 (under control) may be used to prevent a consumer from
consuming electricity (by way of consumer loads 28). Second, shut
off device 23 may also be used to prevent a consumer from
generating electricity (from CPE 10) and delivering it onto power
grid 32. In addition to shut off device 23, there is another
component used to interrupt power. That device is shut off device
27, and it is coupled between main service panel 26 and meter 30. A
utility or its agent may use shut off device 27 to shut off power
supplied to the consumer. Shut off devices 23 and 27 may be a local
device such as a switch or similar component or a device that is
remotely controlled. The switch or similar component may be
mechanical or electronic wherein codes may be entered (for example)
for continued operation. As indicated above, shut off devices 25
and 27 may be remotely controlled by wired or wireless
communication (coupling with control source 29). Conventional
wireless communication includes satellite, radio (e.g., UHF/VHF)
and cellular technology.
[0039] Whether wired or wireless communication (remote) is used,
shut off (using devices 23 and 27) may be accomplished by
deactivation or reactivation. With deactivation, CPE 10 is shut off
when appropriate codes are sent. The lender may send such codes
when the consumer fails to make an incremental payment by a default
cure date set forth in a written notification sent to the consumer.
With reactivation, CPE 10 automatically shuts off and cannot
generate power until control device 29 sends a reactivation codes.
The lender shall send such codes when the consumer makes an
incremental payment by a default cure date. A utility may also shut
off power supplied to the consumer under similar circumstances (as
provided in the agreement between lender/creditor and consumer).
This is described in more detail below.
[0040] Shut off device 27 may be used to interrupt/shut off (1)
electricity supplied to the consumer and (2) electricity generated
by CPE 10 and delivered onto power grid 32. In this configuration,
shut off device 27 may prevent electricity from flowing toward grid
32. However, in this configuration, shut off device 27 is not
capable of preventing a consumer from consuming electricity (via
consumer loads 28) generated by CPE 10. For this purpose, shut off
device 23 is used. If a configuration incorporates control source
29 for shut off (as opposed to a switch), control source 29 may
remotely control and shut off device 23 to cut off power consumed
by consumer loads 28. It is noted that there may be many other
types of shut off and controlling components and configurations to
achieve power interruption.
[0041] Now, if a lender (under an arrangement as discussed below)
desires to shut off power generated by the CPE in accordance with
an embodiment of the present invention, a lender may do so in
several ways. As indicated above, a lender may use control source
29 to control the operation of shut off devices 23 and 27. In
addition, either DC fused switch 18 or AC fused switch 22 may be
"switched" or disconnected to stop power generation and delivery.
In addition, DC/AC inverter may be removed to ensure that power is
not generated and consumed or delivered onto power grid 32. There
may be other switches or components that may be incorporated into
CPE 10 or outside of CPE 10. For example, a switch may be used
between meter 30 and main service panel 26. Any switch discussed
may have a locking or key mechanism in place to prevent
unauthorized "turn on" or "shut off." If a lender desires to shut
off utility power as authorized by a consumer under an agreement
(discussed below) or a utility desires to shut off supplied power
on its own volition, shut off device 27 may be used to cut off
supplied power.
[0042] Reference is made to FIG. 3 wherein an arrangement, i.e., an
agreement between the lender 15 (also known and referred to herein
as "creditor," "vendor" and "PPA Investor") and consumer/borrower
25 for financing consumer premises equipment (CPE) is shown. The
relationship is commemorated or represented by a written contract
such as financial instrument 35 in accordance with an embodiment of
the present invention. Financial instrument 15 may take many forms
including, without limitation, a power purchase agreement (PPA).
The agreement or relationship may alternatively be represented by
any other legal arrangement (in accordance with the present
invention) between a financing entity and a consumer to achieve the
same result. Regardless of the type of arrangement, the agreement
must abide by applicable State and Federal law.
[0043] Examples of such State laws include the Uniform Commercial
Code (UCC) and the Uniform Computer Information Transactions ACT
(UCITA). With respect to the UCC, power shut off may constitute a
form of self-help repossession under the Uniform Commercial Code
(UCC). Under Article 9 of the UCC, the law provides creditors who
have secured a loan (with a consumer) against certain designated
collateral (goods) the right to seize the collateral in the event
the consumer defaults on the loan without resorting to the judicial
system. In addition, the use of self-help repossession in a
software context (e.g., embedding the licensed software with code
to disable use) may also be governed by sections 814-816 of UCITA
(depending on the State). Sections 814-816 enable small and
medium-sized licensors of software to enforce their contractual
rights quickly and efficiently without resort to judicial process.
Today, only Maryland and Virginia have adopted this Act (applicable
UCITA sections are based on proposed Section 2B of the UCC which
ultimately was not passed into law). State law dictates the rules
and regulations of shutting off power (whether manually or
electronically performed). Most States also have laws relating to
consumer credit. Examples of such Federal laws may include "The
Truth in Lending Act," "Equal Credit Opportunity Act," "Fair Credit
Reporting Act" and several other Federal laws.
[0044] Financial instrument 35 shall include several provisions or
features relating to the transaction between lender 15 and
consumer/borrower 25. For one thing, financial instrument 35 shall
include a provision (i.e., language) describing the collateral
against which the loan is secured. Collateral may be personal
property or real property. For example, collateral may be CPE 10,
rebates, credits and subsidies, and/or the real property upon which
CPE 10 is disposed. These are examples of collateral. Financial
instrument 35 shall also give the lender 15 the authority to
foreclose or make a claim to the collateral in the event the
consumer defaults on the loan or breaches the agreement in other
ways. For purposes of this application, the term "provision" shall
mean any portion, text, section or language of an agreement between
a consumer and lender for financing CPE. The terms "provision" and
"section" are used interchangeably in this application. When
discussing a provision of the agreement between the lender and
consumer herein, the provision may be in the body of the agreement,
or alternatively, it may be set forth in an attachment to the
agreement. In this respect, the agreement shall incorporate the
attachment by reference therein.
[0045] In particular, when a consumer fails to make a loan payment
(for example) by its due date, is in non-financial default of the
loan agreement (for example not paying for insurance), or
alternatively, when a consumer fails to pay a PPA payment by its
due, a "default" typically occurs. In general, a default is a legal
term that means the failure to make a payment when due, which can
lead to a notice of default and the start of foreclosure
proceedings if the debt is secured by real property or a
repossession if secured by personal property. However, default
shall also include any breach (violation) by the consumer of one or
more provisions or conditions of the contractual arrangement
between the lender and consumer (e.g., a PPA or other legal
arrangement). An example of this is a consumer's failure to
maintain insurance coverage on the CPE as required by the
agreement. The agreement will determine what ultimately constitutes
a default. In addition, State law may provide limitations on a
default provision in the agreement.
[0046] In many legal arrangements, consumers may have the right to
"cure" a default. State law also may require the right to cure. For
example, Title 9-A, Sections 5-110 and 5-111 of Maine's Consumer
Credit Code provides a right to cure for a default based on the
consumer's first failure to make a required payment under a
consumer credit transaction. Under Sections 5-110 and 5-110, a
creditor may neither accelerate maturity of an unpaid balance of
the obligation, nor take possession of or otherwise enforce a
security interest in goods that are collateral until fourteen days
after a notice of the consumer's right to cure is sent, as provided
in section 5-110. Many States laws prescribe detail steps with
respect to consumer credit, default, notification and collateral
repossession.
[0047] In the event a right to cure a default is conferred by
agreement and/or or State law, the lender will notify the borrower
of the default (or missed payment depending on required language)
and afford the borrower the opportunity to cure the default within
a period of time. This notification may include other information
including the specific clause breached and/or State law requiring
such notification. Notification will likely be in written form, but
could be sent by email or other communication recited in the
agreement or required by State law.
[0048] In order to cure a default as indicated above, the consumer
must "fix" their breach/violation of their legal obligations under
the financial instrument (including a PPA) or other contractual
arrangement. In the event a consumer fails to make a payment for
example, the consumer may cure the breach of contract by tendering
to the lender/creditor the missed loan payment (plus any late fees
as required by the loan) or power purchase payment under a PPA. If
cure is specifically provided (under the contract or State law), a
financial instrument (including a PPA) or other contractual
arrangement usually states a time period in which the consumer (or
borrower) may cure the default. If the consumer does not cure in
accordance with the loan agreement (financial instrument) and/or
State law, the lender must decide how to obtain the money it is
owed or to fix a non-monetary default. Typically, enforcement of a
loan upon a default is done by foreclosure (usually refers to real
property) or repossession (personal property). Under a PPA, there
is no such thing as foreclosure or repossession. However, a
"remedy" is likely provided in the agreement. For purposes of this
application, a remedy in a PPA is treated the same as a foreclosure
or repossession. Foreclosure is a method of enforcing a security
interest in property. Repossession is another method of enforcing a
security interest in personal property (depending on state law).
The lender may have other remedies prescribed in the agreement
and/or by State law (e.g., UCC). Foreclosure, however, is expensive
and time consuming. For this reason, the financial instrument 35
(including PPA) or other legal financing agreement shall include
provisions permitting the lender to (1) enter the consumer's
premises (by way of an easement or license), (2) inspect CPE 10
and/or act upon CPE 10 including shutting the power off of (using
shut off device 23 for example) and possibly shutting off power
supplied to a consumer by a utility using device 27). This is
discussed in detail below with respect to FIGS. 3 and 4.
[0049] Returning to FIG. 3, in summary, financial instrument 35
shall also include one or more provisions or language describing
the loan amount, the interest rate, what constitutes a default, the
rights of the lender 15 (creditor) and consumer upon default
including shut off remedies, maintenance of CPE 10, insurance for
the equipment and/or other terms. In addition (as described above),
financial instrument 35 shall also include a provision(s) or
language granting an easement or license to enable lender 15 or its
agent to enter the real property of the consumer/borrower 25 and to
act upon CPE 10 in some way (shut off, inspect, modify CPE 10 as
described below). An easement (the one herein discussed is
historically called easement in appurtenant or covenant) is a legal
right or restriction that attaches to the property in which CPE 10
is disposed.
[0050] In this respect (i.e., easement), lender 15 may enforce his
right to enter the real property against all who own or lease the
real property on which the CPE 10 is disposed (particularly if the
loan agreement (or PPA) is transferred to the new owner or lessee).
It is not a personal right or restriction that cannot be
transferred (i.e., the personal right or restriction typically
extinguishes when the real property is sold to another). As
described above, the provision with the easement may be in the body
of the agreement between lender and consumer or may be part of an
attachment incorporated by reference into the agreement. Under
state law, it is likely that such as easement must be recorded with
the appropriate state governmental recording agency.
[0051] In another embodiment, the easement may additionally or
alternatively grant the lender 15 a right to continue operation of
the CPE 10 on the real property of the consumer/borrower 25, in the
case of default and/or repossession of the CPE 10. This provides
the lender 15 an ability to continue generation of power and direct
it onto a power grid or another location or storage facility/unit.
Thus, CPE 10 may generate revenue even in the case of default
and/or repossession of the CPE 10.
[0052] As an alternative to an easement, financial instrument 35
may provide a license granting the right to enter the real property
of consumer 25 and act upon CPE 10. Typically, licenses to enter
property, however, are personal and do not run with the land.
Therefore, the easement is more advantageous to lender 15. Whatever
the mechanism is used to grant property entry and access to CPE 10
(e.g., easement, license or other ingress rights), financial
instrument 35 (including a PPA) or other arrangement shall set
forth the length of time in which lender 15 shall have the right to
access the property. In most cases, the right shall extend for the
loan period or other period in which payment must be made (e.g.,
PPA periodic payments for power generated by CPE 10).
[0053] It should be noted that the agreement (financial instrument
35 including PPA or other arrangement) shall grant access to enter
the consumer's real property (premises) even if the lender expects
to remotely shut off a consumer's power (in the event of default).
Property access will permit lender 15, upon its sole discretion, to
inspect CPE 10 and either modify CPE 10 or instruct the consumer to
make such modifications, as required by financial instrument 35.
This will ensure that CPE 10 will optimally generate power during
the course of the arrangement between lender 15 and consumer 25
(until lender determines otherwise in accordance with the agreement
and/or State law).
[0054] As part of the agreement, lender 15 shall require that
consumer 25 execute any additional legal real property documents
necessary to enable lender 15 to secure the easement or other legal
rights (to enter the property) and to perfect such rights against
third parties. Such documents may require notarization. In order to
perfect such security document, lender 15 shall typically file such
documents (e.g, easements) at the government recordation office in
which the real property is located. The appropriate governmental
office may be a county recorder's office, Secretary of State or
department of corporation's office. However, State law ultimately
governs recordation procedure and filing.
[0055] As indicated above, financial instrument 35 shall include a
provision(s) or language granting lender 15 the right to (1)
inspect the CPE 10, (2) remove the CPE 10, (3) shut off (also known
as disconnected, interrupted or "intervention") power locally or
remotely generated by CPE 10 based on specified breaches
(violations of financial instrument 35) and/or (3) modify and
maintain the CPE 10 to ensure maximum power generation. In the
event lender 15 decides to shut off consumer power under the
agreement, lender 15 shall notify consumer 25 and give a certain
period to cure the breach of agreement to avoid shut off. Financial
instrument 15 will likely require such notification (even if State
law does not require it).
[0056] In addition, the provisions described herein granting rights
to enter the consumer premises and act upon the CPE 10 may apply to
agents (or other third parties such as the trustee in a deed of
trust) acting on behalf of lender 15 including installers,
inspectors or other entities instructed to perform services for
lender 15. These agents granted such rights may also include a
utility, as a third party beneficiary, supplying power to consumer
25. In this respect, the utility would have the right (and may be
required as authorized in the agreement between lender 15 and
consumer 25) to enter the property and/or to shut off power (i.e.,
power intervention or interruption) supplied to the consumer by the
utility (for breaches of the agreement between lender 15 and
consumer 25).
[0057] In the event a consumer defaults and financial instrument 35
grants lender 15 the right to force a utility to shut off power,
financial instrument should reference and possibly incorporate the
utility agreement (between consumer and utility). Financial
instrument 35 shall also require that lender 15 to follow the rules
and requirements of such utility agreement with respect to power
discontinuance. PG & E of California, for example, has a tariff
agreement in which power discontinuance rules are prescribed. See
domain page at pge.com/tariffs/ER.SHTML#ER. This agreement is
incorporated herein by reference.
[0058] Financial Instrument 35 shall also include a provision or
section requiring the consumer to notify lender 15 if for legal
reasons why lender 15 shall not shut off power in the event of a
default by the consumer. For example, a consumer may legally
require life support equipment to stay alive. Such equipment
requires power for operation. Lender 15 may check a consumer's
meter tags (indicating that power must not be shut off) and/or the
utility company database for people on life support. Such
provisions may require a lender to check a consumer's meter tags
and/or check the utility company database for people on life
support. See PG&E's Service for Medical Baseline and Life
Support Customers. (See domain page at
pge.com/res/financial_assistance/medical baseline_life_support/) In
addition, the agreement provision or section may provide a specific
email, postal or other address to which the notification shall be
sent.
[0059] Financial instrument 35 may also include a provision or
section with a power of attorney. This power of attorney will
govern communication between the consumer 25 and the utility,
relevant State PUC and possibly other entities. The language may
state that this power of attorney is irrevocable. Note that State
law ultimately governs such provisions.
[0060] While the discussion above pertains to a financial
instrument involving a loan, the contractual provisions or language
pertaining to the right to enter the property (e.g., easement) and
the right to act upon CPE 10 (e.g., interrupt CPE functions,
inspect CPE and modify CPE, etc.) may be included in any other
legal agreement between the parties concerning the purchase of
power generated by the CPE 10, or lease or use of CPE 10 to
generate power. In the event that power interruption or shut off is
the desired action by any authorized party under any contractual
arrangement, power may be interrupted or shut off locally or
(alternatively) remotely. If action is performed locally, lender
15, its agent or any contractually authorized party may enter the
property to perform the task mechanically (using shut off devices
23 and 27). For example, shut office devices 23 and 27 may be a key
or switch to interrupt power. Alternatively, lender 15 may remove
inverter 20 or any other component provided such removal does not
damage CPE 10 or the real property on which CPE 10 is positioned.
(It should be noted that power might be shut off for safety
reasons.)
[0061] In the event interruption or shut off is to be performed
remotely, lender 15 may achieve this goal electronically by wire or
wireless connection as described above (using shut off devices 23
and 27). For example, lender 15 may interrupt or shut off power by
means of a codes/software deactivation or reactivation.
Specifically, CPE 10 purchased (or used or leased under a PPA) by
consumer 25 may include software under license to consumer 25. If
consumer 25 fails to make a loan payment (or other default as
described herein), lender 15 (agent or another authorized to act on
its behalf such as a vendor) may deactivate CPE 10 remotely
(traditionally via software execution). Alternatively, such
software may require periodic reactivation codes or keys to enable
consumer 25 to continue to use CPE 10 to generate power. In the
event consumer 25 fails to make a loan payment, consumer 15 will
not receive reactivation codes until consumer 25 cures the
breach.
[0062] Financial Instrument 35 (including a PPA) or any other
agreement between the consumer and lender for financing renewable
energy CPE will not only be executed by the parties, but will
likely be also be notarized. Alternatively, lender 15 may use a
medallion guarantee to guarantee financial instrument 15 from
forgery. (In the United States, a medallion signature guarantee is
a special signature guarantee for the transfer of securities. It is
a guarantee by the transferring financial institution that the
signature is genuine and the financial institution accepts
liability for any forgery. Signature guarantees protect
shareholders by preventing unauthorized transfers and possible
investor losses. They also limit the liability of the transfer
agent who accepts the certificates.) In addition, execution of the
agreement (i.e., the transaction) may be evidenced by electronic
recordation including videotape or other means of proof.
[0063] Reference is now made to FIG. 4 wherein a flowchart is shown
that illustrates the steps of a method for either shutting off or
maintaining power generation on a consumer's premises (real
property). In this method, it is presumed that a lender has
provided a loan to a consumer for the purchase of CPE 10. In the
normal course of any financing mechanism or process, consumer 25
will make payments to lender 15 on an incremental basis. Terms
typically require monthly payment increments but any period may be
required. Payments are shown at step 35. Execution then moves to
decision step 45 wherein it is determined whether consumer 25 has
made the relevant incremental payment. If the consumer has made the
relevant payment, execution returns to step 45. If consumer 25
fails to make a payment, consumer 25 is in default for failure to
make the appropriate incremental payment. Execution moves to
decision step 55 wherein it is determined if consumer's failure to
make a payment has triggered a default-remedy provision under the
terms of financial instrument 35. Such a provision will be
triggered if notice is provided to consumer 25 with appropriate
information and cure date.
[0064] If a default-remedy provision is not yet triggered, lender
15 shall notify consumer 25 at step 65 of the failed payment, (2)
the default provision breached, (3) the deadline in which payment
must be received (cure date), (4) the location in which payment
must be delivered or sent and (5) the remedies provided under the
agreement and State law that lender may use to enforce the
agreement. There may be other information set forth in the
notification.
[0065] Now, if consumer 25 failed to make the payment by the cure
date, lender 15 shall notify consumer 25 that consumer 25 is in
default, consumer 25 has breached the agreement by his/her failure
to make payment by the cure date, the default-remedy provision(s)
of financial instrument 35 are triggered and that power generated
by CPE 10 may be interrupted or shut off by a specified date, or
alternatively the CPE 10 must be continued in operation for the
benefit of the lender 15, unless payment is not received
immediately. At this time, lender 15 has all of the available
remedies provided under financial instrument (agreement) 35 as well
as under State law.
[0066] Execution then moves to decision step 85 wherein lender 15
determines whether it wishes to interrupt or shut off power, or
alternatively continue operation for the benefit of the lender 15.
If the answer is no, lender 15 may wish to take advantage of other
remedies such as garnishing employment wages of consumer at step 95
or alternatively foreclosing on the consumer's property or taking
other action to obtain the money to repay the loan. Lender 15 may
also enter the property to perform maintenance on CPE 10 to ensure
CPE 10 continues to generate power at steps 105 and 115,
respectively, for the following reason. Lender 15 may desire to
claim the collateral in accordance with financial instrument 35.
The collateral may include the CPE 10 for example, the power
generated by the CPE 10, the receivables paid/credited by a utility
for power generated by the CPE 10 or other property. Alternatively,
lender 15 may be receiving payments from utility directly. As
indicated, lender wants to ensure that CPE 10 generates power to
receive the benefits from that power (e.g., receivables). Lender 15
may have other options against consumer 25 to repay the loan.
[0067] In the event the answer to decision step 85 is yes and
lender 15 decides to interrupt or shut off power (CPE 10),
execution moves to decision step 125 wherein lender decides if it
will interrupt or shut off power locally (mechanically). If the
answer is yes, lender 15 shall enter the real property at step 135
and interrupt or shut off power at the consumer's premises a step
145. This may be accomplished by switch, component removal or other
mechanical or electro-mechanical means. In the event the answer is
no to decision step 125 and lender 15 desires to interrupt or shut
off power remotely, lender 15 has several options to accomplish
this task, but such options will depend on the system components of
CPE 10 and the specific provisions (e.g., easements, licenses etc.)
of financial instrument 35 and any related documents. As described
above, lender 15 may deactivate CPE 10 remotely as described above
by sending codes/software (using shut off device 23).
Alternatively, lender 15 may not transmit activation codes or keys
to ensure continuous operation of CPE 10 (until payment is
received). Interruption/shut off may be by wired or wireless
communication (remotely). Shut off may, however, be accomplished in
many ways (described above).
[0068] In addition to the lenders authority to interrupt or shut
off power (step 85), a utility may also be authorized (and
required) to interrupt or shut off power. This is shown in decision
step 155 connected in parallel to step 85 (dashed lines). The
utility will also have the choice of interrupting power locally or
remotely (steps 125 and 155) as described above depending on the
grid connection and system used. The utility may choose not to shut
off power, but may wish to enter the real property to access the
equipment (for inspection or modification. This equipment may be
utility owned equipment or possibly CPE 10.
[0069] While the method of FIG. 4 applies to breaches (violations
of the agreement) by means of a failure to make payment, any breach
of a condition or provision may be cause for property entry and/or
power interruption or shut off. For example, any failure to
maintain insurance for CPE 10 or pay real or personal property
taxes as required by financial instrument 35 may be subject to
power shut off. In addition, the arrangement described with respect
to the method in FIG. 4 is a financial instrument (e.g., a PPA or
other security agreement). However, any legal arrangement may be
used for this method including a PPA or any other legal
arrangement.
[0070] The foregoing description of the embodiments of the
invention has been presented for purposes of illustration and
description. It is not intended to be exhaustive or to limit the
invention to the precise form disclosed and modifications and
variations are possible in light of the above teachings or may be
acquired from practice of the invention. The embodiments were
chosen and described in order to explain the principles of the
invention and its practical application to enable one skilled in
the art to utilize the invention in various embodiments and with
various modifications as are suited to the particular use
contemplated. It is intended that the scope of the invention be
defined by the claims appended hereto and their equivalents.
APPENDIX
Terms and Definitions
[0071] "collateral" shall mean any property or asset pledged by a
borrower to secure a loan or other credit, and subject it to
seizure in the event of default.
[0072] "consumer" shall mean a user or purchaser of power
(electricity).
[0073] "computer implementation" (also known referred to "computer
implemented") shall mean the execution of any or all process steps
by computer.
[0074] "consumer premises equipment" (also known or referred to as
"CPE," "consumer premises equipment" "renewable energy consumer
premises equipment" and "renewable energy CPE") shall mean the
physical assets of the CPE such as any and all renewable energy
equipment that resides (or is disposed) on or near a residential
building, business, institution or other real property. CPE shall
include solar components as the renewable energy equipment (source)
and any and all mounting equipment. Alternatively, CPE may include
any other renewable equipment such as wind, biomass or water
(hydroelectric) energy generation equipment as well as
non-renewable energy sources.
[0075] "credits" shall mean any money or other valuable
consideration offered to an entity for certain defined acts.
[0076] "deed of trust" shall mean a document which pledges real
property to secure a loan by a consumer. The property is deeded by
a title holder (trustor) to a trustee (often a title or escrow
company), which holds the title in trust for the beneficiary (the
lender of the money). When the loan is fully paid, the trustor
requests the trustee to return the title by reconveyance. If the
loan becomes delinquent or is in default, the beneficiary can file
a notice of default and, if the loan is not brought current, the
trustee can demand that the trustee begin foreclosure on the
property so that the beneficiary may either be paid or obtain
title.
[0077] "default" shall mean the failure to make a payment when due,
which can lead to a notice of default and the start of foreclosure
proceedings if the debt is secured by real property or a
repossession if secured by personal property. Default shall also
include any breach (violation) by the consumer of one or more
provisions or conditions of the contractual arrangement (e.g., a
PPA or other legal arrangement) between the lender and consumer. An
example of this is a consumer's failure to maintain insurance
coverage on the CPE as required by the agreement.
[0078] "easement" shall mean the legal right or restriction that
enables an entity to enter the real property of another entity. An
easement attaches to the real property and therefore may be
enforced against all who own or lease the real property.
[0079] "entity" shall mean any person, group of persons, company,
division, agency, partnership or other entity (private or
government). Entity includes, without limitation, a consumer,
lender or other party.
[0080] "financial instrument" shall mean any real or virtual
document representing a legal agreement involving some sort of
monetary value. Such financial instrument shall include an
agreement between a lender (also known and referred to herein as
"creditor," "vendor" and "PPA Investor") and consumer/borrower for
financing consumer premises equipment (CPE). A power purchase
agreement (PPA) is an example of a financial instrument. Financial
instruments shall include "notes." Financial instruments are also
known as securities.
[0081] "foreclosure" shall mean a method of enforcing a security
interest in real property.
[0082] "intervention" (also referred to as "shut off") means the
interference of or the ability (i.e., the right) to interfere with
a consumer's ability to use power generated by the CPE or provided
by a utility.
[0083] "lender" (also referred to as "creditor," "vendor," and "PPA
Investor") shall mean an entity that provides the financing for the
CPE. A lender shall include an entity that provides a loan to a
consumer for the purchase of the CPE or a PPA investor that
actually purchases CPE for power generation and purchase by a
consumer.
[0084] "license" shall mean the right of one entity to enter the
real property of another. A license does not attach to the real
property and therefore cannot be enforced against all who own or
lease the real property.
[0085] "loan" shall mean an arrangement in which a lender gives
money to a borrower (e.g., the consumer), and the borrower agrees
to repay the money, usually along with interest, at some future
point(s) in time. A loan is usually evidenced by a specific
financial instrument (or financial instruments).
[0086] "mortgage" (or "mortgages") shall mean a debt financial
instrument by which the borrower (mortgagor or consumer) gives the
lender (mortgagee) a lien on property as security for the repayment
of a loan.
[0087] "personal property" shall mean property of any kind except
real property. Personal property may be tangible, having physical
existence, or intangible, having no physical existence, such as
financial instruments. Personal property shall include, without
limitation, receivables, credits, subsidiaries.
[0088] "power purchase agreement" (also known as "PPA") shall mean
an agreement in which a PPA Investor agrees to purchase and install
CPE, and the consumer agrees to purchase the power generated by the
CPE for a period of time. A power purchase agreement may be treated
as or incorporate a lease of the CPE by the consumer.
[0089] "power" shall mean electricity. Power is also known as or
referred to as "electricity" or "energy."
[0090] "power grid" (also known as the "power transmission and
distribution grid," "electric grid" or "grid") shall mean the
network of transmission and distribution lines (and the step-up and
step-down transformers) that is used to deliver electricity to
consumers.
[0091] "PPA Investor" shall mean an entity that provides the
financing for CPE in connection with a power purchase agreement
with a consumer.
[0092] "provision" shall mean any portion, text, section or
language of an agreement between a consumer and lender for
financing CPE. The terms "provision" and "section" are used
interchangeably in this application. A provision may be in the body
of the agreement, or alternatively, it may be set forth in an
attachment to the agreement.
[0093] "rebates" shall mean a deduction from the amount due or a
return of part of an amount given in payment.
[0094] "receivables" shall mean any payment, instrument or other
valuable consideration owed to an entity (e.g., consumer) for the
power generated by the CPE, whether or not such payment, instrument
or other valuable consideration is currently due. The receivables
may be provided by a utility or other entity. Receivables shall
include, without limitation, any credit, money certificate or other
quantifiable value for power generated by a CPE.
[0095] "real property" shall mean the land as well as any permanent
fixtures on it including buildings, trees and other fixtures.
[0096] "renewable energy" shall mean power supplied by energy
sources that are naturally and continually replenished such as
wind, solar power, geothermal, hydropower, and various forms of
biomass.
[0097] "renewable energy source" shall mean sources of renewable
energy such as water (hydroelectric power), wind, biomass and solar
energy.
[0098] "shut off" (also known as "disconnected", "interrupted" and
"intervention") shall mean the interference with a consumer's use
of power generated by the CPE or provided by a utility.
[0099] "subsidies" shall mean a monetary grant given by government
to lower the price of a good such as CPE, generally because they
are considered to be in the public interest.
[0100] "utility" shall mean any entity that purchases, sells or
markets power to (or from) the consumer of power or has the primary
relationship with that consumer.
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