Valuation

Wind Turbine Valuation

It is important that anyone seeking to sell their operational wind turbine is given a fair valuation and can be confident that the price we offer represents good value and is a sound business proposition.

How we calculate the value of a wind turbine

The model we use in our calculations when valuing a wind turbine takes into account a standard series of factors, with price ultimately linked to the monetary income the site yields. This income is calculated by taking the amount of energy the turbine produces and exports, multiplied by the tariffs that apply, and minus the annual operating costs.

The wind production numbers are critical in this. We can use existing wind reports, Feed-in-Tariff meter data or turbine SCADA data to determine these numbers. If this information is not available, we will appoint a mutually agreed wind expert to produce the required information.

Once we have obtained the wind figures, the wind expert will model the data to accurately reflect the wind turbine’s prospective performance over its lifetime.

We also require details of the tariffs in effect for both power generation – the Feed-in Tariff – and for the export of power – the Power Purchase Agreement (PPA) – to the grid. By combining the wind number and the overall tariff figures we are able to calculate a gross income for the remaining years of the wind turbine’s operation.

To produce a net income figure, we then deduct costs, such as any lease or rental payment for the land on which the wind turbine is situated; maintenance contracts; and any other associated expenditure. The age and quality of the wind turbine will also be taken into consideration; notably as a business we are happy to consider refurbished wind turbines as well as those that were newly constructed for the installation. The final valuation will typically represent a large multiple of the wind turbine owner’s annual income.

Sell your wind turbine but retain your land

For sellers who own both a wind turbine and the land it stands on, there is no requirement for the land to be sold. Instead, Fifty will be happy to arrange a lease, with payment on an annual basis, for use of the turbine during its expected lifetime – typically 20 years.

Furthermore, the value of your initial payment can be increased by reducing the value of the lease. Conversely, a larger annual lease payment can be negotiated, in line with a reduced upfront payment – the choice is yours.

Call for a confidential valuation.

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