As renewable energy projects are coming online at an accelerated pace, technology is being developed to significantly reduce costs. What happens when the same solar facility you built 4 years ago at $300MM would cost $100MM to build today?
Renewable Energy Cost vs. Value
A solar energy client had a facility built a few years prior, and replacement cost new to build the same facility had cut almost in half. What happens when technology advancements change the replacement cost of a facility significantly? Does the taxable value remain the same?
We were able to secure a savings for the client of over $350,000 in property taxes by lowering the value of the facility by over $60MM. Had there not been an abatement in place, the tax savings realized would have been close to $1.4MM for one year.