“Risk is not the fertilizer of return, but the weed in our Investment”

Renewable Energy Projects and Parks are income producing properties and as such they should be considered as 
Private Bonds with coupons and internal returns.

The income (coupon) of this Private Bond is actually a safe haven. This Private Bond produces a much higher internal rate 
of return than other investments, regardless of world financial crises. The Private Bondholder/Investor/Operator generates
his own returns based on an ever growing demand for clean renewable energy.

Determining the value of an income producing investment is of critical importance. Over the years there have always been disagreements about the “right” method of valuing income generating projects. Value is a subjective opinion based on 
certain assumptions and conditions. Establishing with the help of financial engineering the intrinsic value of a Renewable 
Energy Project or Park, gives you an objective valuation and a clear view of your investment returns.

Approaches to Value

There are two approaches to value : Comparable Sales and Income Valuation.
Comparable Sales Approach : takes into consideration market sales comparison, property data and sales terms.
Income  Valuation   Approach : is about Intrinsic Value, which bears more weight in the valuation of a Renewable 
Energy Project or Park.

Intrinsic Value – What is it this Green Bond worth to You ?

This valuation approach gives you clear numbers to assess what the investment is worth to you. It is not about comparable 
sales, or market estimated cap rates. It determines the value at which you can attain your investment goals.

Derivative Cap Rate ( DCR ), Net Present Value ( NPV ), Return on Investment ( ROI ), Return on Equity ( ROE ), 
Internal Rate of Return ( IRR ), EBITDA, Modified Internal Rate of Return ( MIRR ) are some of the tools income valuation uses.

Proper Valuation and Due Diligence

It is vital to compute your Income Valuation based on an Audited Due Diligence Report. Projected income assumptions, 
deferred costs, finance requirements, market dynamics, weather conditions, projected component replacement, deferred maintenance, operating performance and all other facility related costs and issues have to be known from the due diligence 
stage. The challenge is to provide your valuations with a safety that minimizes the uncertainties. 

A classic piece of advice is : "You make the money on the buy", a proper valuation and a due diligence will give you the 
certainty of knowing what you are buying.