Project summary
- FG were instructed by CCC to undertake an RICS Red Book valuation of their 12MWp operational solar park near Soham, for annual financial statements
- The solar park, built on 68 acres of former agricultural land, was developed in 2016, commissioned in 2017 and generates around 13GWh per year and it's output is reported to be equivalent to more than half of all electricity used by CCC in their buildings, street lighting and other assets
- The 50,000-panel solar park was deployed through the National Re:fit programme and is registered for the Contracts for Difference scheme
Solution
- FG worked with the CCC to obtain all the necessary supporting information required to complete the valuation
- We carried out a thorough inspection of the site
- We undertook due diligence to understand the operational and financial risks associated with the solar park
- We then prepared a Discounted Cash Flow (DCF) and used alternative investment types to determine a net initial yield the market would apply to the income generated by the solar park, to arrive at a Market Value We produced an RICS Red Book valuation report that CCC could use for financial statements
Benefits
- CCC were provided with a comprehensive report that they could rely on for financial reporting and audit purposes
- They received a copy of the DCF with full financial projections, supporting assumptions and comparable evidence, giving an indication of how the value of the solar park will evolve over time
- CCC had the benefit of Fisher German’s 20+ years’ experience advising clients on energy projects throughout the UK
