Solar energy is widely perceived as a promising technology for electricity generation in remote locations in developing countries. It is estimated that 1Á3 million solar home systems had been installed by early 2000. An estimated one-third of installed systems were backed by foreign donor support in government programmes and twothirds supplied by commercial dealers. The estimated growth in the deployment of solar lanterns is less than for SHS. One out of every 100 households that gain access to electricity in developing countries uses solar power. In spite of these successes, doubts have arisen about the effectiveness and suitability of small PV systems for rural development. Many organisational, ®nancial and technical problems appear to present dif®culties. A literature survey has been conducted to make an inventory of experience with solar PV applications for households in developing countries. The main ®nding is that an adequate service infrastructure is required to make projects viable. Household choice in system sizes is often too restricted in donor-funded projects. Smaller systems sold for cash can be a good alternative to credit systems by offering to increased affordability. Gaps in existing knowledge have been identi®ed, which could be overcome by ®eld monitoring programmes.

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