Wind Power Valuation

You are considering purchasing a wind power facility and need to understand its value at the end of its lease term to facilitate the sale negotiation processes. You are a law firm looking for litigation support in defending the value of a wind power facility, or perhaps you are a bank looking to finance a new wind power facility and need to know its fair market value. Any one of these situations requires a comprehensive wind power valuation. The results of a wind project valuation will help determine a facility’s fair market value and residual value, which determines the facility’s selling price and assists in the negotiation of the sale.

New advancements in wind and solar power research have revealed new methods for building more sustainable power plants. These plants don’t emit harmful chemical emissions, which is just one reason there is an increasing number of alternative energy sources such as solar and wind power gaining prevalence in the power industry. Due to the increase and need for more facilities of this nature, there is a greater number of complex situations that arise where a solar or wind power facility would need a valuation.

A power company may need to know the value of a wind power facility for taxation or bookkeeping purposes, or a lawyer may need a wind project valuation during litigation proceedings while defending a project under scrutiny from the IRS, federal government, or other judicial agency. You may be considering selling your facility and may need a wind power valuation to help determine residual value and fair market value, so you can accurately determine the sale price.

Whatever the reason, Appraisal Economics understands the need for comprehensive and reliable wind project valuations. For twenty years, Appraisal Economics has provided accurate power plant appraisals by using proven methodologies that meet or exceed industry standards. Feel free to contact our professionals today about your power plant appraisal needs.

Wind Project Valuation Methods
Appraisal Economics is an industry leader in providing accurate, supportable wind project valuations. Our methods have earned us the respect of judiciary and regulatory agencies. We use a combination of approaches to determine a wind project’s fair market value. While each situation has its own set of complexities to consider, our rigorous internal standards have met or exceeded all relevant industry standards to provide an objective, accurate wind project valuation.

Our experienced professionals begin a wind power valuation by visiting the facility. We then collect relevant financial documentation, cost data, engineering drawings, and specifications, which aid in performing the cost approach analysis. This is done to understand the cost of reproducing the facility. We also take into account the overall functionality and economic obsolescence of the facility. Once the cost approach is completed, we assess the facility using the income approach. We analyze historical financial statements and prepare a pro forma cash flow modeling the expected finances of the facility. If adequate market data exists, we will also utilize the market approach to value the facility. Our final step, when necessary, is to estimate the remaining useful life and the residual value of the facility.

Power Plant Valuation Experts
Deregulation and new alternative energy research have created a marketplace for energy producers. As more of these facilities are built, there is a greater need for understanding each facility’s value. Appraisal Economics has an unsurpassed knowledge in valuing wind projects and other energy assets including: solar power, hydro, coal, nuclear, and cogeneration. We have a professional team of engineers, tax, and appraisal consultants who have worked on an international level. We understand that each energy appraisal, whether it’s a wind project valuation or solar power valuation, has its own complexities. That is why we set internal standards that ensure only the highest level of quality. Please contact our professionals for more information about obtaining an accurate, objective opinion and value of your wind power facility.

Additional Information from Appraisal Economics

Equipment Appraisals

Valuation Of Patents

ASC 718 (formerly SFAS 123)