Independent scrutiny of income projections helps funder get comfortable with heat project value.
- Providing the Client with a high-level opinion on appropriate valuation multipliers for a 6.2MW Ground Source Heat Pump scheme.
- We engaged with the Client to obtain the necessary information about the project.
- We assessed the reasonableness of the forecast operational term, RHI accreditation, Tier 1 and 2 RHI rates, CoP (coefficient of performance), cost and income projections.
- We used the investment and discounted cash flow methods of valuation and completed sensitivity analysis.
- As the comparable method of valuation was not appropriate, we looked at alternative investment types to assist in arriving at an appropriate yield for the scheme.
- Independent analysis cleared internal credit hurdles and gave the Client all-important peace of mind.
- By providing valuation multipliers the Client was able to carry out further sensitivity analysis as they wished.