Solar Power Valuation

A law firm is defending a company with solar power assets that are under scrutiny in Tax Court. A newly-formed solar power company is interested in understanding its facility’s value for tax and insurance purposes. A state organization is looking to build additional solar power facilities. These three situations all require an accurate solar power valuation to understand the overall value of the facility. When companies have solar power assets the IRS questions, a law firm must understand the value of those assets in order to build a proper defense. Whether you are a newly-formed solar power company, a private equity firm, or a state organization, proper tax reporting includes disclosing the value of a solar power project. Understanding these values is also important when looking to build additional solar power facilities. There are many more situations where solar power valuations are necessary, and Appraisal Economics understands these needs. Appraisal Economics is a leader within the industry, providing services in the areas of solar project valuation, trademark valuation and wind power valuation.

Determining a Solar Project’s Value
Every situation has its own set of complex variables that can make a solar project valuation critical. Any successful law firm will tell you that no two litigation cases are the same, just like no two solar power facilities are the same. Each solar power project has different performance levels and other variables that affect a facility’s overall worth. When that worth comes into question, or needs to be understood, a solar project valuation then becomes imperative. Appraisal Economics uses proven methodologies to accurately determine a solar project’s value. We produce appraisals that meet or exceed relevant industry standards by using a combination of the cost, income, and market approaches to value the facility.

The valuation of a solar power project begins with a visit to the company’s facility. After inspection of the facility, the cost approach method is applied where we collect all relevant documents including power purchase agreements, and construction and operating data. An overall estimation of the facility’s physical, functional, and economic obsolescence also comes into play when considering the value of a solar project. After employing the cost method to value the facility, we use an income approach to analyze historical financial data and prepare a pro forma cash flow. Then we determine the fair market value of these expected earnings by discounting them to present value. The market approach can only be used to value the facility if strong market data is available. During this entire process we work closely with clients to ensure accuracy, while providing an objective, supportable solar power valuation in a timely manner.

The Valuation Experts
Appraisal Economics is an international appraisal firm respected for timely, accurate reports and opinions. Our experienced professionals have unparalleled appraisal knowledge and offer unsurpassed service for a variety of valuation needs, including solar project valuation and patent valuations. We understand that time is precious and our professionals respect deadlines while not sacrificing the quality of work. Understanding the value of patents, trademarks and solar projects is often required in complex situations when timing is crucial. We work with our clients to ensure you are receiving the high-level service all of our clients have come to expect.

Appraisal Economics has a proven track record for providing accurate, timely valuations of solar projects and other power plant valuations, including various facilities such as coal, wind, hydro, and many more. Our team of professionals has more than 20 years of experience appraising power facilities nationwide. Please contact Joseph G. Kettell regarding your solar power valuation or other business valuation needs.

Additional Information from Appraisal Economics:

Equipment Appraisals

Transfer Pricing

Fairness Opinion

Stock Valuation