Remote Control Provisions for Renewable Energy Financing
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Solution Overview
Problem
Current financing options for renewable energy equipment, such as solar power, lack a mechanism for lenders to ensure timely payments, as they do not have the authority to access or shut off the equipment remotely, leading to costly and time-consuming foreclosure processes.
Innovation Solution
A financial instrument and agreement that allows lenders to control and shut off renewable energy consumer premises equipment (CPE) in case of default, enabling remote power interruption and ensuring timely payments by incorporating provisions for easements and control devices.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional financing options (mortgage, secured loan, unsecured loan) are used for renewable energy equipment, then consumers can obtain financing without remote control provisions, but lenders lack the ability to enforce payments through remote access or shut-off capabilities, requiring costly and time-consuming physical repossession or foreclosure procedures
Solution Approach 1:
The patent segments the financing agreement into distinct components: (1) traditional payment terms, (2) remote access authorization provisions, and (3) shut-off capability provisions. This segmentation allows lenders to selectively implement control mechanisms while maintaining flexible financing structures that can be tailored to different consumer situations and equipment types.
Solution Approach 2:
The patent introduces an intermediary control mechanism that acts as a mediator between the lender and the renewable energy equipment. This intermediary system provides remote access authorization and shut-off capabilities without requiring direct physical intervention by the lender, thereby reducing the complexity of enforcement while improving payment reliability.
2Productivity
If lenders are granted authorization for remote access and shut-off capabilities in financing agreements, then enforcement of payment agreements becomes more efficient, but the complexity of the financing agreement increases
Solution Approach 1:
The patent applies preliminary action by obtaining consumer authorization for remote access and shut-off capabilities before default occurs. The financing agreement is structured to include these provisions upfront, so that when payment issues arise, the lender can immediately exercise remote control without needing to initiate complex legal proceedings or physical repossession processes.
Solution Approach 2:
The patent substitutes mechanical/physical enforcement mechanisms (physical repossession, foreclosure proceedings) with electronic/digital control mechanisms (remote access authorization, electronic shut-off capabilities). This substitution dramatically improves enforcement efficiency while the standardized agreement templates help manage the increased contractual complexity.
3Reliability
If physical repossession or foreclosure procedures are used to enforce payment, then lenders can recover equipment, but the process is costly and time-consuming
Solution Approach 1:
The patent introduces an intermediary remote control system that enables lenders to enforce payment agreements and recover equipment value without direct physical intervention. The intermediary authorization provisions allow lenders to remotely shut off or control the renewable energy equipment, providing equipment recovery assurance while avoiding the time-consuming physical repossession and foreclosure processes.
Data Source
AI summary
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.