ABSTRACT
A solar installation may well save money over its lifetime but have a relatively high initial capital cost. The financial value of the project is usually assessed by calculating the total costs and benefits either over its lifetime or over a set investment period, using discounted cash flow (DCF), and a comparison of the result with other forms of investment. A solar power installation may achieve credits to assist with project financing under a UN/World Bank-brokered financing scheme, or under a third-party scheme where a business purchases 'carbon offsets' from an intermediary. Carbon offsetting is the counteracting of carbon dioxide or other greenhouse gas emissions from one activity with an equivalent reduction of emissions to the atmosphere elsewhere. Carbon offsetting projects may include the prevention of emissions by energy efficiency activities, the installation of renewable energy generators, the planting of trees or the use of any means to absorb and safely and permanently sequester carbon dioxide from the atmosphere.
