Remote Shut-off Control for Renewable Energy Financing Default

Solution Overview

Problem

Current financing options for renewable energy equipment, such as solar power systems, lack mechanisms for lenders to ensure timely payments, as they do not provide the necessary authorization or means to remotely access or shut off the equipment in case of payment defaults, leading to costly and time-consuming foreclosure processes.

Innovation Solution

A method and system that allow a non-utility entity to finance renewable energy consumer premises equipment (CPE) with a shut-off control device, enabling remote control of power delivery to prevent usage upon default, monitored by a computer system to detect payment defaults and enforce payment compliance.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If traditional financing options (mortgage, secured loan, PPA) are used for renewable energy equipment, then consumers can access financing for expensive solar equipment, but lenders lack mechanisms to ensure timely payments and must rely on costly and time-consuming foreclosure processes

Engineering Contradiction:

Improvepayment timelinessVSAvoidforeclosure process duration

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The patent implements a shut-off control device that is pre-installed and configured in the renewable energy system before financing begins. This device is programmed to automatically shut off power generation when payment default is detected, eliminating the need for time-consuming foreclosure processes. The system performs the enforcement action in advance by having the control mechanism ready and waiting, triggered only when default occurs.

Inventive Principle:

Principle #10Preliminary action

Solution Approach 2:

The patent introduces a shut-off control device as an intermediary component between the renewable energy equipment and the grid/connection. This mediator device controls power flow and can independently shut off the system when default is detected, serving as an automated enforcement mechanism that eliminates the need for lengthy judicial foreclosure processes.

Inventive Principle:

Principle #24Intermediary (Mediator)

2Reliability

If traditional financing options are used for renewable energy equipment, then consumers can purchase expensive solar equipment, but lenders incur high costs due to lack of remote access and shut-off capabilities

Engineering Contradiction:

Improvepayment complianceVSAvoidfinancing enforcement mechanism

Core Design Contradiction:

ReliabilityVSDevice complexity

Solution Approach 1:

The patent introduces a shut-off control device as an intermediary component between the renewable energy equipment and the grid/connection. This mediator device controls power flow and can independently shut off the system when default is detected, serving as an automated enforcement mechanism that eliminates the need for lengthy judicial foreclosure processes.

Inventive Principle:

Principle #24Intermediary (Mediator)

Solution Approach 2:

The system enables self-service enforcement by automating the default detection and shut-off process. The control device monitors payment status and automatically shuts off power generation when default is detected, without requiring lender intervention or physical access to the premises. This self-enforcing mechanism reduces both cost and complexity.

Inventive Principle:

Principle #25Self-service

3Reliability

If physical access is required for shut-off of renewable energy equipment upon default, then lenders can enforce payment agreements, but the process becomes costly and time-consuming

Engineering Contradiction:

Improvepayment enforcementVSAvoidshut-off process simplicity

Core Design Contradiction:

ReliabilityVSEase of operation

Solution Approach 1:

The patent replaces mechanical/physical shut-off methods with an electronic control system. The shut-off control device uses electronic signals to control power flow and can be remotely activated when default is detected. This substitution of electronic control for mechanical intervention eliminates the need for physical access to the equipment and premises.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Solution Approach 2:

The patent introduces a shut-off control device as an intermediary component between the renewable energy equipment and the grid/connection. This mediator device controls power flow and can independently shut off the system when default is detected, serving as an automated enforcement mechanism that eliminates the need for lengthy judicial foreclosure processes.

Inventive Principle:

Principle #24Intermediary (Mediator)

Data Source

PatentUS9031874B2Methods, systems and agreements for increasing the likelihood of repayments under a financing agreement for renewable energy equipment

Publication Date: 2015.05.12 SPRUCE IP PROPERTIES LLC

AI summary

A system is provided for increasing the probability of timely receiving payment under an agreement between a consumer and a non-utility entity for providing financing for renewable energy consumer premises equipment (CPE) by the consumer for power generation at a consumer premises, the renewable energy CPE adapted to deliver power onto a power grid or to the consumer's premises, the system comprising: a computer for monitoring consumer financial information for by the non-utility entity to detect the consumer's financing default in accordance with the agreement, wherein the renewable energy CPE including a PV array and a control device coupled to the PV array for controlling the operation of the PV array and any power generated by the CPE upon a default detected by the computer.