Solar Project Valuation

Because of the recent increase in the building of solar power projects, there are many situations where a valuation could be critical. A law firm may have a client that is a high profile solar power company in the midst of securities litigation. Perhaps a premier financial institution is unsure whether a private equity firm’s solar power acquisition affects future funding. In both of these situations, an accurate solar power valuation is required. Understanding the value of a solar power project is also critical when trying to decide whether to buy or sell the facility. Knowing the value of a solar project can also assist the buyer during the negotiation process, which could happen years before the facility’s lease ends. In the case of a private equity firm’s acquisition of a solar power facility, a financier would request a valuation to gather a proper understanding of the value of those new assets. Many established, well respected banks also require a solar project valuation when assessing the overall worth of a business.

More situations requiring an accurate solar power valuation will emerge as support gains for alternative energy. The United States Department of Energy continues to back research that makes it even easier to build sustainable solar power plants. This growth inevitably creates situations where a solar project valuation is necessary. Appraisal Economics is an international industry leader in providing valuation services that include solar power valuations, as well as wind project valuations and other power plant appraisals. Our professionals have unsurpassed appraisal knowledge and use methodologies that meet or exceed all industry standards. Please contact Joseph Kettell for more information about solar project valuation, or any of our other valuation services.

Methods for Valuing Solar Power
Assigning value to solar power facilities can be a complex process involving many different variables. From basic tax reporting to insurance and property tax situations, there are numerous needs for solar project valuation services. Appraisal Economics uses proven valuation methods to ensure reporting accuracy in a timely manner. We use the cost, income, and market approaches to assess fair market value.

We begin our solar power valuation by visiting the facility for inspection. Then we begin collecting relevant financial documents, such as power purchase agreements and construction cost data that will factor into our cost approach. Our valuation of a solar power facility must also estimate the cost to reproduce the facility. This estimate is often calculated by using engineering drawings, when available, along with the overall estimation of the physical, functional and economic obsolescence. After analyzing this data, we move on to historical financial data analyzed through an income approach. We will also value the facility using the market approach if market data is available. We take into consideration sales of similar facilities, making adjustments for specific characteristics of the subject. Throughout the whole process, we work closely with clients to ensure an objective, supportable appraisal. Feel free to learn more about Renewable Energy and Solar Installation.

Your Appraisal Experts
Appraisal Economics provides industry leading solar power valuations, as well as other power plant valuations. Our professionals bring strategic thought to decision makers who need accurate, supportable opinions within tight deadlines. No matter the situation, we provide the high-level service you require. One of the ways we provide that service is through expert witness testimony. We understand that in recent years the rise in litigation has required our professionals to support their opinions and conclusions. Many of our key personnel have experience in these high pressure situations. We have provided expert testimony during federal cases, bankruptcy proceedings, infringement/breach of contract cases, and many others. We invite questions regarding solar power valuations, or any other appraisal service, and encourage you to contact us at any time.

Additional Information on Valuation Services

Intangible Asset Values

Intellectual Property

ASC 350 (formerly FASB 142)

Utility Valuation