Solar

Solar energy is one of the fastest-growing sources of renewable energy. DAI’s appraisal services have supported solar projects and equipment in a variety of financing applications, including project finance and lease. DAI is certified by the American Society of Appraisers and can perform fair market valuation analyses exactly to your level of need.

Recent Experience: DAI provided appraisal support for the financing of the 125MW Crescent Dunes project, a concentrating thermal solar power plant with molten salt thermal storage, as well as numerous commercial and utility-scale PV installations.

Project tax characteristics are an important value driver for solar projects.  The proper characterization of depreciable project costs and justification of eligibility for investment tax credits are key to supporting project value assumptions to both investors and auditors.  DAI’s detailed cost segregation reports provide the analysis necessary to identify and distinguish project intangibles and to appropriately allocate ITC-eligible development costs to tangible property.

Recent Experience: DAI provided cost segregation services for an 80 MW portfolio of utility-scale PV projects in the Southwest in support of a tax equity partnership.  In performing the cost segregation, DAI relied on IRS Code, Chief Counsel Advice, IRS Notices and Rulings, and other tax regulations as relevant authorities.

Although solar systems are becoming more common, owner risks are ever-present in the design and construction of a project, as well as unrealistic performance targets or inefficient operation.  DAI’s team of engineers and technical experts can offer owners and investors an unbiased view of a project’s physical condition and its true potential for production and income generation.  DAI has reviewed and inspected hundreds of projects, providing the depth of experience to assess design elements, operating expenses, production forecasts, and EPC performance.

Recent Experience:  For a national developer, DAI provided engineering services over the construction cycle of a portfolio of utility-scale PV projects including pre-construction production verification, construction monitoring, EPC performance test review, and certifications required for financing.

DAI’s production forecasting services allow our clients to understand and evaluate natural fluctuations in solar energy production caused by weather (e.g., clouds). Our production forecasts are based on decades of actual historical data from the government agencies and sophisticated statistical modeling. Applying updated data, DAI can provide probabilistic forecasts of energy production for any location nationwide. The output is clear, unambiguous, and readily adaptable to project-specific financial modeling. The end results of this sophistication are direct indications of power production uncertainty:  probability distribution and confidence intervals. For example, DAI can provide the P50/P95/P99 production forecasts often used in financial structuring.

Recent Experience: DAI evaluated power production uncertainty for a group of PV installations in Massachusetts. The resulting probabilistic information, including information in the graph at the right, was used to get lenders comfortable with the project’s financial structure.

The recent explosive growth in the residential solar market has been facilitated by new financing products including leases and power purchase agreements that permit homeowners to enjoy the benefits of home solar without the upfront cost.  Pooling ownership of residential systems has permitted improved efficencies and access to new sources of capital.

Recent Experience: DAI has performed appraisals of large portfolios of residential systems across fourteen states to support equity investments by large institutional investors. These appraisals recognize that both installation costs and system income attributes vary substantially from state to state.