`SECURITIES AND EXCHANGE COMMISSION
                                              Washington, D.C. 20549

                                                    FORM 10-QSB


(Mark One)
   [X]   Quarterly report under Section 13 or 15(d) of the Securities Exchange Act of 1934 for the quarterly
         period ended September 30, 2005.

   [  ]  Transition report under Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition
         period from              to               .


         Commission file number: 001-14791


                                               SOLAR ENERGY LIMITED
                         (Exact name of small business issuer as specified in its charter)


                          DELAWARE                                                  76-0418364
              (State or other jurisdiction of                                    (I.R.S. Employer
               incorporation or organization)                                   Identification No.)



                     145-925 West Georgia Street, Vancouver, British Columbia, Canada V6C 3L2
                                (Address of principal executive office) (Zip Code)


                                                  (604) 669-4771
                                            (Issuer's telephone number)


Check  whether the  registrant:  (1) filed all reports  required to be filed by Section 13 or 15(d) of the Exchange
Act during the past 12 months (or for such shorter  period that the  registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.

                                    Yes     X                                   No____

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
                                    Yes                                         No   X



The number of outstanding shares of the registrant's common stock, $0.0001 par value (the only class of voting
stock), as of November 21, 2005 was 10,421,275.`

`TABLE OF CONTENTS

                                                      PART I

ITEM 1.  FINANCIAL
STATEMENTS......................................................................................3

          Unaudited Consolidated Balance Sheet as of September 30,
          2005............................................4

          Unaudited Consolidated Statement of Operations for the three and nine months ended
          September 30, 2005 and
          2004..............................................................................5

          Unaudited Consolidated Statement of Cash Flows for nine months ended
          September 30, 2005 and
          2004..............................................................................6

          Notes to Unaudited Consolidated Financial
          Statements.....................................................8

ITEM 2.  MANAGEMENT'S PLAN OF
OPERATION............................................................................17

ITEM 3.  CONTROLS AND
PROCEDURES...................................................................................22

                                                      PART II

ITEM 1.  LEGAL
PROCEEDINGS.........................................................................................22

ITEM 2.  UNREGISTERED SALES OF EQUITY
SECURITIES...................................................................22

ITEM 3.  DEFAULTS UPON SENIOR
SECURITIES...........................................................................25............................
20

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS
.....................................................25

ITEM 5.  OTHER INFORMATION
.........................................................................................25

ITEM 6.
EXHIBITS..................................................................................................25

SIGNATURES.........................................................................................................26

INDEX TO
EXHIBITS..................................................................................................27`

`PART I

ITEM 1.  FINANCIAL STATEMENTS

As used herein, the term "Company" refers to Solar Energy Limited, a Delaware corporation and its subsidiaries,
unless otherwise indicated.  In the opinion of management, the accompanying unaudited consolidated financial
statements included in this Form 10-QSB reflect all adjustments (consisting only of normal recurring accruals)
necessary for a fair presentation of the results of operations for the periods presented.  The results of
operations for the periods presented are not necessarily indicative of the results to be expected for the full
year.`

`SOLAR ENERGY LIMITED
                                           (A DEVELOPMENT STAGE COMPANY)

                                        INTERIM CONSOLIDATED BALANCE SHEETS

                                                                                September 30,     December 31, 2004
                                                                                     2005
----------------------------------------------------------------------------- ------------------- ------------------
                                                                                 (Unaudited)

                                                      ASSETS

CURRENT ASSETS
   Cash                                                                            $    205,048          $      32
   Prepaid expenses                                                                     305,315                707
----------------------------------------------------------------------------- ------------------- ------------------

                                                                                        510,363                739
----------------------------------------------------------------------------- ------------------- ------------------
----------------------------------------------------------------------------- ------------------- ------------------

FURNITURE AND EQUIPMENT, net of depreciation (Note 5)                                     4,938              2,965
----------------------------------------------------------------------------- ------------------- ------------------

OTHER ASSETS
   Deposits
                                                                                         25,300                300
   Investment in Mining and Mineral Rights (Note 4)                                           -             50,000
----------------------------------------------------------------------------- ------------------- ------------------
----------------------------------------------------------------------------- ------------------- ------------------

                                                                                         25,300             50,300
----------------------------------------------------------------------------- ------------------- ------------------
----------------------------------------------------------------------------- ------------------- ------------------

                                                                                    $   540,601     $       54,004
============================================================================= =================== ==================


                             LIABILITIES AND STOCKHOLDERS' EQUITY (CAPITAL DEFICIENCY)

CURRENT LIABILITIES
   Accounts payable                                                                 $   147,740        $    75,258
    Accrued liabilities                                                                 178,732            173,909
   Notes payable - related party (Note 8)                                                62,511             46,785
----------------------------------------------------------------------------- ------------------- ------------------

                                                                                        388,983            295,952

DEBENTURES PAYABLE (Note 9)                                                           3,522,260                  -
----------------------------------------------------------------------------- ------------------- ------------------
----------------------------------------------------------------------------- ------------------- ------------------

                                                                                      3,911,243            295,952
----------------------------------------------------------------------------- ------------------- ------------------
----------------------------------------------------------------------------- ------------------- ------------------

STOCKHOLDERS' EQUITY (CAPITAL DEFICIENCY)
   Capital stock  (Note 10)
      Common stock, $0.0001 par value, 50,000,000 shares authorized
           10,076,275 (2004 - 7,521,275) shares issued and outstanding                    1,008                752
   Shares to be issued                                                                   58,000                  -
   Additional paid-in capital                                                         4,394,864          3,660,620
   Deficit accumulated during the development stage                                  (7,824,514)        (3,903,320)
----------------------------------------------------------------------------- ------------------- ------------------
----------------------------------------------------------------------------- ------------------- ------------------

                                                                                     (3,370,642)          (241,948)
----------------------------------------------------------------------------- ------------------- ------------------

                                                                               $        540,601     $       54,004
============================================================================= =================== ==================





              The accompanying notes are an integral part of these consolidated financial statements`

`SOLAR ENERGY LIMITED
                                           (A DEVLOPMENT STAGE COMPANY)

                                   INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
                                                    (Unaudited)

                                       Three Months    Three Months    Nine Months     Nine Months    January 5, 1994
                                          Ended           Ended           Ended           Ended        (inception) to
                                      September 30,   September 30,   September 30,   September 30,    September 30,
                                           2005            2004            2005            2004             2005
------------------------------------- --------------- --------------- --------------- --------------- -----------------


                                      $                                               $
SALES                                 250,000                   $  -       $ 250,000  -                     $  250,000
COST OF SALES                                      -               -               -               -                 -
------------------------------------- --------------- --------------- --------------- --------------- -----------------
------------------------------------- --------------- --------------- --------------- --------------- -----------------

GROSS PROFIT                                 250,000               -         250,000               -           250,000
------------------------------------- --------------- --------------- --------------- --------------- -----------------
------------------------------------- --------------- --------------- --------------- --------------- -----------------

OPERATING EXPENSES
   General and administrative                437,142           2,473         711,697          78,141         2,784,596
   Research and development                        -               -               -          40,673         2,238,132
------------------------------------- --------------- --------------- --------------- --------------- -----------------
------------------------------------- --------------- --------------- --------------- --------------- -----------------

TOTAL OPERATING
       EXPENSES                              437,142           2,473         711,697         118,814         5,022,728
------------------------------------- --------------- --------------- --------------- --------------- -----------------
------------------------------------- --------------- --------------- --------------- --------------- -----------------

OPERATING LOSS                               187,142           2,473         461,697         118,814         4,772,728
------------------------------------- --------------- --------------- --------------- --------------- -----------------
------------------------------------- --------------- --------------- --------------- --------------- -----------------

OTHER INCOME (EXPENSE)
   Minority interest                               -               -               -           1,850           123,856
   Gain (loss) on investments                 20,000               -          40,000          85,925           378,440
   Loss on sale of assets                          -               -               -               -           (2,575)
   Write off patents                               -               -               -               -          (39,648)
   Write off goodwill                    (3,500,000)               -     (3,500,000)               -       (3,514,118)
   Interest income (expense)                     403               3             503           (590)          (53,879)
   Gain (loss) on sale of subsidiary               -               -               -               -            56,138
------------------------------------- --------------- --------------- --------------- --------------- -----------------
------------------------------------- --------------- --------------- --------------- --------------- -----------------

TOTAL OTHER INCOME
      (EXPENSE)                          (3,479,597)               3     (3,459,497)          87,185       (3,051,786)
------------------------------------- --------------- --------------- --------------- --------------- -----------------

NET INCOME (LOSS)                      $ (3,666,739)      $  (2,470)   $ (3,921,194)      $ (31,629)     $ (7,824,514)
===================================== =============== =============== =============== =============== =================




BASIC NET LOSS PER SHARE                    $ (0.38)        $ (0.00)        $ (0.30)        $ (0.00)
===================================== =============== =============== =============== ===============

WEIGHTED AVERAGE
       COMMON SHARES
       OUTSTANDING                        9,757,145       7,521,275      13,291,482       7,348,625
===================================== =============== =============== =============== ===============










              The accompanying notes are an integral part of these consolidated financial statements`

`SOLAR ENERGY LIMITED
                                           (A DEVELOPMENT STAGE COMPANY)

                                   INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                    (Unaudited)

                                                                         Nine Months     Nine Months   January 5, 1994
                                                                               Ended           Ended    (inception) to
                                                                       September 30,   September 30,     September 30,
                                                                                2005            2004              2005
--------------------------------------------------------------------- --------------- --------------- -----------------
                                                                                                              (Note 1)

CASH FLOWS FROM OPERATING ACTIVITIES
  Net loss for the period                                             $                 $   (31,629)      $(7,824,514)
                                                                      (3,921,194)
  Adjustments to reconcile net loss to net cash from operating
activities:
  - depreciation                                                                 445          10,730           197,450
  - bad debt                                                                       -               -           225,000
  - stock issued for services                                                433,500               -           685,515
  - stock issued for r&d expenses                                                  -               -           576,567
  - loss on sale of assets                                                         -               -             2,575
  - gain on investments                                                            -               -         (338,440)
  - gain on sale of subsidiary                                                     -        (85,925)          (56,137)
  - write off patents                                                              -               -            39,648
  - write off goodwill                                                     3,500,000               -         3,514,118
  - minority interest                                                              -        (40,182)         (123,856)
  - deposits                                                                       -               -             4,537
  - prepaid expenses                                                       (304,608)          23,058         (282,815)
  - accounts receivable                                                            -               -                39
  - accounts payable                                                          72,482        (15,430)           195,938
  - accrued expenses                                                           4,823         (7,253)           229,781
  - accrued debenture interest                                                22,260               -            22,260
--------------------------------------------------------------------- --------------- --------------- -----------------

NET CASH USED IN OPERATING ACTIVITIES                                      (192,292)       (146,631)       (2,892,334)
--------------------------------------------------------------------- --------------- --------------- -----------------

CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES
  Cash received on sale of investment                                              -               -            10,000
  Cash acquired from sale of subsidiary                                            -               -           180,000
  Cash acquired (sold) from sale of subsidiary                                     -               -           247,512
  Cash paid to subsidiary                                                          -               -         (107,568)
  Cash paid to RECO and Sunspring                                                  -               -           (2,076)
  Cash paid for patent costs                                                       -               -         (106,318)
  Cash paid for property and equipment                                       (2,418)               -          (62,298)
  Cash for deposits                                                                -               -           (4,837)
  Cash received on sale of assets                                                  -               -            23,000
  Cash received on forfeited deposit                                               -               -            50,000
  Cash for other receivable                                                        -               -         (275,000)
  Cash paid for mining & mineral rights                                       25,000               -          (25,000)
--------------------------------------------------------------------- --------------- --------------- -----------------

NET CASH USED IN INVESTING ACTIVITIES                                       (22,582)               -          (72,585)
--------------------------------------------------------------------- --------------- --------------- -----------------






          The accompanying notes are an integral part of these interim consolidated financial statements`

### INDEX TO EXHIBITS

|Exhibit No. | Page No. | Description                                                                                                                                                                                                                                                   
|----------- | -------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|3(i)        | *        | Articles of Incorporation (incorporated by reference to the Company's Form 10-SB filed with the Securities
 and Exchange Commission on January 28, 1999                                                                                                       
|3(ii)       | *        | By-Laws (incorporated by reference to the Company's Form 10-SB filed with the Securities and Exchange
 Commission on January 28, 1999)andnbsp;                                                                                                                
|10(i)       | *        | Debt Settlement Agreement dated August 27, 2003 between the Company and Bay Cove Capital Corporation
 (incorporated by reference to the Company's Form 10-KSB filed with the Securities and Exchange Commission
 on April 1, 2004                             
|10(ii)      | *        | Acquisition Agreement with Planktos, Inc., dated August 10, 2005 (incorporated by reference to the Company's Form
                                    8-K filed with the Commission on August 19, 2005).                                                      
|10(iii)     | *        | Acquisition Agreement with D2Fusion Inc., dated August 18, 2005 (incorporated by reference to the Company's Form
                                    8-K filed with the Commission on August 19, 2005).                                                       
|10(iv)      | *        | Iron-Fertilization Prove-Out and Purchase Agreement with Diatom Corporation, dated August 18, 2005 (incorporated by reference to the
Company's Form 8-K filed with the Commission on August 19, 2005).                                                        
|14          | *        | Code of Ethics Adopted March 30, 2004 (incorporated by reference to the Company's Form 10-KSB filed with
 the Securities and Exchange Commission on April 1, 2004                                                                                             
|31          | Attached | Certification of the Chief Executive Officerandnbsp; and Chief Financial Officer pursuant to Rule 13a-15(e)
 and 15d-15(e) andnbsp;of the Securities and Exchange Act of 1934 as amended, as adopted pursuant to Section
 302 of the Sarbanes-Oxley Act of 200
|32          | Attached | Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C Section
 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 200                                                                              

* Incorporated by reference to prior filingsandnbsp;with the Securities and Exchange Commission.

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