Fair Market Valuation/Cost Segregation

Storage is one of the fastest-growing energy technologies. Storage systems promote grid stability and demand charge management, in addition to providing backup for commercial applications. Our analysts understand the specific characteristics that affect the value, such as warranty length and service contracts, as well as storage dispatch and maintenance schedule. DAI is certified by the American Society of Appraisers and can perform fair market valuation analyses exactly to your level of need. In addition, DAI’s detailed cost segregation reports provide the analysis necessary to identify and distinguish project intangibles and to appropriately allocate Investment Tax Credit eligible development costs to tangible property.

   Recent Experience:  DAI provided an appraisal for a 20-megawatt wind energy storage system to support equity investments of large institutional investors. DAI performed lease-related services to determine depreciation and residual value at the end of lease. DAI developed detailed economic models that illustrated the value of the project to the end user, rather than merely the current equipment value. DAI also provided cost segregation services for the Project, relying on IRS Code, IRS Notices and Rulings, and other tax regulations as relevant authorities.

Independent Engineering Review

DAI’s engineering services range from reviewing project designs to evaluating production forecasts. Project risks are ever-present in the design and construction of a project, as well as unrealistic performance targets or inefficient operations. DAI can serve as the lenders’ eyes and ears in monitoring construction, reviewing budgets and schedules, and assisting with understanding (and responding to) any variances that occur.

One example of a fuel cell battery combination that DAI has reviewed is a proton exchange membrane fuel cell coupled with extended size “D” cell lithium–ion batteries. In this case, DAI functioned as an independent engineer to review and assess this technology so that third-party investors and stakeholders could be adequately appraised of the technologies function and value. Regardless of the technology, however, DAI aims always to conduct full cycle and thorough reviews, considering each component, the interactions between those components, and the market that technology is in so that stakeholders receive the most useful analysis possible.

  Recent Experience:  DAI prepared an Independent Engineering review of a utility-scale solar storage project in Holyoke, Massachusetts. DAI provided engineering services which consisted of design assessment, battery cell degradation projections, battery capacity verification, and a review of Investment Tax Credit eligibility. DAI’s ability to understand the technical requirements of the offtaker agreement, as well as compliance with the terms of various project agreements, provides our clients with an additional level of service.

Technology Review

DAI’s expertise is critical when evaluating energy storage assets because of their unique role in the energy value chain. Since project tax characteristics are an important value driver for solar and wind projects, understanding the intended use of the application allows DAI to address each project’s capabilities and weaknesses (such as useful life risks). By providing our clients with a robust review of the technical aspects of a project, including operations and maintenance, DAI can ensure our clients understand the resilience and the ability of the project to remain online if a failure situation occurs.

   Recent Experience:  DAI provided a technology review and expected useful life analysis for Tesla Powerpack equipment to be financed by a tax equity investor. By staying current on new technology, DAI can continue to support our clients as they expand into new areas.

  • Cost Segregation
  • Equipment & Loan Collateral Analysis
  • Fair Market Value Appraisal
  • ITC Eligibility Analysis
  • Independent Engineering Services
  • Market Analysis
  • Operating Performance Monitoring
  • Performance Test Review
  • Technology Reviews
  • Utility Scale Solar and Wind Projects
Lithium-ion Battery Technology
Lithium-ion Battery Technology - West, TX
Inside of a Large Battery Cabinet