The Cost Analysis step is critical in estimating the costs incurred and credits avoided with the installation of the proposed system. Both initial investment costs and the annual recurring costs for operations and maintenance are analyzed.

An important choice in this step is whether to perform a feasibility or a pre-feasibility study.  A pre-feasibility analysis is somewhat less detailed and less costly though also less accurate whereas a full feasibility study requires more detailed information and more accurate results. Typically the type of renewable energy technology being considered dictates this decision.  Subsequent input in this step includes the initial, annual, and periodic costs for the proposed case system from development, engineering and equipment, as well as credits for any costs from the current system that are avoided with the proposed case installation.

The next step is optional, the Emission Analysis.

Source: www.retscreen.net