Systems and methods for financing renewable energy systems
A method for financing renewable energy systems includes offering a home loan to a homeowner in which the interest payable by the homeowner are tax deductible. 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.
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 home loan options;
receiving, by the computing system, a second selection of a lease for the homeowner from the lease options;
offering the home loan to the homeowner in which the payments by the homeowner are at least in-part tax deductable;
offering the lease to the homeowner for the renewable energy system; and
determining, by the computing system, a deposit of cash proceeds from said home loan into a trust held by the equivalent of an escrow agent for the single purpose of paying lease payments for said lease as each payment becomes due;
wherein, the determination of proceeds deposited from said home loan are effectively used to defease the debt represented by the future payment obligations of 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 home loan includes an energy loan and the offering a lease includes power purchase agreement.
4. The method of claim 1 , further comprising:
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 is reduced thereby; and
selling said home loan to said holder-in-due-course.
5. The method of claim 4 , further comprising:
securitizing said home loan in a portfolio that includes correcting for loans that do not perform to a particular standard.
6. 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.
7. The method of claim 1 , further comprising:
selling any renewable energy credits (REC's) that obtain from installing or operating said renewable energy system.
8. The method of claim 1 , further comprising:
increasing business operating profits with any tax incentives that are obtained from installing or operating said renewable energy system.
9. 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.
10. 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.
11. The method of claim 1 , wherein when the debt is defeased, the debt is no longer reported as a liability on a balance sheet.
12. 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.
13. A computer-readable storage medium containing instructions for controlling a computer system to perform a method for financing renewable energy systems, the method 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 home loan options;
receiving, by the computing system, a second selection of a lease for the homeowner from the lease options;
offering the home loan to the homeowner in which the payments by the homeowner are at least in-part tax deductable;
offering the lease to the homeowner for the renewable energy system; and
determining, by the computing system, a deposit of cash proceeds from said home loan into a trust held by the equivalent of an escrow agent for the single purpose of paying lease payments for said lease as each payment becomes due;
wherein, the determination of proceeds deposited from said home loan are effectively used to defease the debt represented by the future payment obligations of said lease.
14. The computer-readable storage medium of claim 13 , wherein when the debt is defeased, the debt is no longer reported as a liability on a balance sheet.
15. The computer-readable storage medium of claim 14 , wherein the method further comprises paying a plurality of lease payments for said lease when each payment becomes due.