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To implement the proposal, the following documents were
prepared:
1. A Solar Energy Purchase Agreement (the purchase
agreement), dated November 2, 1995, by and between HEH as seller
and petitioner as purchaser, in which HEH agreed to sell to
petitioner all of the energy produced from the heating system.
Under the purchase agreement, HEH retained ownership of the
heating system and agreed to sell energy from the heating system
to petitioner and to install, service, maintain, and repair the
heating system during the purchase agreement’s term. HEH also
agreed to make any improvements necessary to complete the
installation, without any additional cost to petitioner. HEH
provided a comprehensive warranty for the term of the purchase
agreement, including a promise to perform all required
maintenance without additional cost to petitioner. The payment
schedule specified in the purchase agreement required petitioner
to pay HEH (a) $46 per month for each of the first 36 months,
except that in months 6, 12, and 36 petitioner was required to
pay $2,263, $650, and $700, respectively; (b) nothing for months
37 through 60; and (c) $20 for month 61. The payments required
under the agreement totaled $5,151. The agreement was to be in
effect for a period of 5 years and 1 month from the date on which
the heating system became fully operational.
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Last modified: May 25, 2011