Viability checklist

The following table summarises factors that should typically be considered in an assessment of viability and indicates data sources.

Upfront costs	Data Source
Capital cost of equipment & supporting infrastructure	Quotes from manufacturers and suppliers
Design and installation costs	Quotes from consultants, suppliers, contractors or Quantity Surveyor estimate
Cost of land take, plant space & ancillary structures, and any other design aspects/changes	Quantity Surveyor estimates and quotes from suppliers/contractors where relevant
Financing costs	Developer, ESCO, financing entity

Operating costs/charges	Data Source
Amount of energy supplied	Energy strategy/feasibility study. Compare with ESCO assumptions where relevant
Operating and maintenance costs – systems installed in individual buildings	Information from manufacturers and suppliers.
Operating and maintenance costs – shared systems	Prospective ESCO or assumptions in energy strategy/feasibility study
Energy prices for heat and electricity (extent of occupier dependence)	Prospective ESCO
Standing charges to building owners	Prospective ESCO

Upfront income & cost transfer	Data Source
Grant funding	Applicant
Third party financing & loans	Applicant
ESCO financing	Applicant; also see Making Energy Service Companies Work: Guidance and Advice on Setting Up and Delivering an ESCO www.lep.org.uk/files/?ref=FC2M4S3Z-18
Any property sale value uplift realisable	Surveyors or estate agents

Ongoing income & charges	Data Source
Value of energy exported	Prospective ESCO
Current fiscal incentives, e.g. ROCs Prospective incentives e.g. renewable heat, feed in tariffs, tax breaks	Prospective ESCO; various Government departments and agencies involve in administering them: www.ofgem.gov.uk, www.hmrc.gov.uk, www.decc.gov.uk, www.berr.gov.uk

Ongoing income & charges

Data Source

Value of energy exported

Prospective ESCO

Current fiscal incentives, e.g. ROCs

Prospective incentives e.g. renewable heat, feed in tariffs, tax breaks

Prospective ESCO; various Government departments and agencies involve in administering them: www.ofgem.gov.uk, www.hmrc.gov.uk, www.decc.gov.uk, www.berr.gov.uk

Note: due to commercial sensitivity, it is unlikely that full details of all of the above costs, sources of income or funding arrangements will be provided in the application but you should, through regular communication, try and build a relationship with the developer where they feel comfortable explaining their thinking around these issues.