KPMG + LandGate alliance helps solar developers substantially improve their balance sheet with LandCo valuations.
Powered by LandGate data, KPMG has helped utility-scale developers unlock substantial hidden asset value in their land developed with solar farms and energy storage projects. Our valuation services can help developers strengthen their balance sheet, leverage cheaper capital, and more strategically deploy more solar projects across the country
Solar Real Estate Valuation
Many solar landowners have limited visibility into the fair market value of the land associated with active solar projects. The cost-basis for solar real land typically understates fair market value as the purchase price often reflects agricultural or raw land uses and comparable sales of solar land are often difficult to obtain as it is uncommon for land associated with operating solar projects to be sold independent of the full solar system.
In alliance with LandGate, KPMG is excited to provide utility-scale solar landowners appraisal services for solar real estate to estimate the FMV of solar land based on the fair market rent that an operating solar site could achieve in a given market. KPMG’s valuations are performed by state-licensed appraisers and are compliant with USPAP standards allowing solar landowners to understand the significant uptick in real estate value that is created during the solar development cycle.
Solar developers have been increasingly focused on the real estate component of utility scale solar projects through the use of LandCo structures. Developers will purchase the underlying solar project land through a LandCo and sign a related-party lease with the ProjectCo.
This allows the developer’s to both lower their debt financing costs and optimize the structure of rent payments over the project’s life. Powered by LandGate data, KPMG provides valuations that will assist developers with assessing any intangible asset value that may be created due to above or below market lease payments. Fair market rent studies that provide clients with a range of market rents can serve as guidelines when setting rent payments between ProjectCo and LandCo can also be performed.
KPMG’s solar real estate valuation team is a part of KPMG’s National Renewable Energy Group. KPMG provides tax, valuation, and cost-segregation services to renewable energy developers focusing on utility scale wind, solar, and battery storage projects.
LandGate provides advanced analytics for renewable energy M&A deals, market & price trends, operators’ benchmark and performance indicators, and more. LandGate’s database contains over 600 datapoints per land parcel for every parcel across the United States.