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D. Petitioner’s Agreement With HEH
Petitioner entered into a Solar Energy Purchase Agreement
(SEP) with HEH on December 8, 1996. Under the SEP, HEH agreed to
sell, and petitioner agreed to buy, the energy produced from the
solar water heating system components owned by HEH and installed
in petitioners’ home. The SEP agreement had a term of 61 months
from the date the system became operational. Petitioner agreed
to make monthly payments of $50 for a 61-month period, except
that the payments were $800 in month 1, $2,325 in month 7, $1,500
in month 9, and $300 in month 60. HEH agreed that, during the
term of the agreement, the solar water heating system and its
installation would be free of defects and that HEH would provide,
without charge to petitioner, all necessary maintenance required
for a solar water heating system under normal use. During the
term of the agreement, petitioner asked HEH to repair and upgrade
the solar water heating system, and HEH did so.
Petitioner signed a Beneficiary Enrollment agreement on
December 8, 1996, which provided that petitioner would become a
beneficiary of HEH. Also on that day, petitioner signed a
document entitled “What Did We Just Do?”, which stated, inter
alia, that: (1) Petitioner was a beneficiary of HEH; (2)
petitioner was buying only energy from HEH; (3) the trustees of
HEH had discretion to pass solar energy tax credits and
deductions through to petitioner; (4) any credits and deductions
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Last modified: May 25, 2011