UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-QSB

                 (X) QUARTERLY REPORT UNDER SECTION 13 OR 15 (D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934

                       FOR THE QUARTER ENDED JUNE 30, 2002

                        Commission File Number:  0-30060

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

Delaware                                                              76-0418364
(Jurisdiction  of  Incorporation)                (I.R.S. Employer Identification
No.)

112  C  Longview  Drive,  Los  Alamos,  New  Mexico                        87544
(Address  of  principal  executive  offices)                          (Zip Code)

Registrant's  telephone  number,  including  area  code:         (505)  672-2000

As  of  July  16,  2002,  there were 3,647,208 shares of Common Stock issued and
outstanding.

Transitional Small Business Disclosure Format  (check one):  yes (  )     no (X)


                         PART I:  FINANCIAL INFORMATION

                         ITEM 1.  FINANCIAL STATEMENTS.

The  financial  statements,  for  the  six  months ended June 30, 2002, included
herein  have  been  prepared by the Company, without audit pursuant to the rules
and  regulations of the Securities and Exchange Commission.  Certain information
and  footnote  disclosures normally included in financial statements prepared in
accordance  with generally accepted accounting principles have been condensed or
omitted  pursuant  to  such rules and regulations, although the Company believes
that  the  disclosures  are  adequate  to  make  the information not misleading.


                 THE REST OF THIS PAGE INTENTIONALLY LEFT BLANK

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                               SOLAR ENERGY LIMITED
                          (a Development Stage Company)
                           CONSOLIDATED BALANCE SHEETS

<TABLE>
<CAPTION>
                                                        June 30,    December 31,
                     ASSETS                               2002         2001
                                                      (Unaudited)
<S>                                                  <C>           <C>
 Current Assets
   Cash and Cash Equivalents. . . . . . . . . . . .  $    13,970   $    23,741
   Accounts Receivable. . . . . . . . . . . . . . .        9,358        11,994
   Other Current Assets . . . . . . . . . . . . . .        1,180           400
                                                     ------------  ------------
     Total Current Assets . . . . . . . . . . . . .       24,508        36,135

 Property and Equipment, Net. . . . . . . . . . . .        7,236         9,234

 Other Assets
   Patent Costs . . . . . . . . . . . . . . . . . .       31,345        34,005
   Goodwill . . . . . . . . . . . . . . . . . . . .       11,388        16,948
   Deposits . . . . . . . . . . . . . . . . . . . .        4,837         4,837
                                                     ------------  ------------
     Total Other Assets . . . . . . . . . . . . . .       47,570        55,790

   Total Assets . . . . . . . . . . . . . . . . . .  $    79,314   $   101,159
                                                     ============  ============

 LIABILITIES AND STOCKHOLDERS EQUITY

 Current Liabilities
   Accounts Payable . . . . . . . . . . . . . . . .  $    86,329   $    90,940
   Accrued Liabilities. . . . . . . . . . . . . . .       71,555        70,537
   Notes Payable - Related Party. . . . . . . . . .      568,635       510,893
                                                     ------------  ------------
     Total Current Liabilities. . . . . . . . . . .      726,519       672,370


 Minority Interest. . . . . . . . . . . . . . . . .      107,150       107,150

 Stockholders' Equity
   Common Stock, authorized 50,000,000 shares
   of $.0001 par value, issued and outstanding
   3,647,208 shares . . . . . . . . . . . . . . . .          365           365
   Additional Paid in Capital . . . . . . . . . . .    2,573,621     2,573,621
   Deficit Accumulated During the Development Stage   (3,328,341)   (3,252,347)
                                                     ------------  ------------
     Total Stockholders Equity. . . . . . . . . . .     (754,355)     (678,361)

   Total Liabilities and Stockholders Equity. . . .  $    79,314   $   101,159
                                                     ============  ============
</TABLE>

      The accompanying notes are an integral part of these financial statements.

                                        2
<PAGE>

                               SOLAR ENERGY LIMITED
                          (a Development Stage Company)
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)

<TABLE>
<CAPTION>
                                      Three Months Ending        Six Months Ending       Three Months Ending
                                            June 30,                  June 30,                 March 31,
                                       2002         2001         2002         2001         2002         2001
<S>                                 <C>          <C>          <C>          <C>          <C>          <C>

 NET SALES . . . . . . . . . . . .  $        -   $        -   $        -   $        -   $        -   $        -
 COST OF SALES
   GROSS PROFIT. . . . . . . . . .           -            -            -            -            -            -
 OPERATING EXPENSES
   General and Administrative and.                                                          38,475      101,717
   Research and Development. . . .       6,873       76,792       76,004      178,509       30,656            -
                                    -----------  -----------  -----------  -----------  -----------  -----------
     Total Operating Expenses. . .       6,873       76,792       76,004      178,509       69,131      101,717
                                    -----------  -----------  -----------  -----------  -----------  -----------
       Operating Loss. . . . . . .      (6,873)     (76,792)     (76,004)    (178,509)     (69,131)    (101,717)
 OTHER INCOME (EXPENSE)
   Minority Interest . . . . . . .                    8,836                    15,431                     6,595
   Interest Income . . . . . . . .           4          281           10          387            6          106
                                    -----------  -----------  -----------  -----------  -----------  -----------
     Total Other Income (Expense).           4        9,117           10       15,818            6        6,701

 NET INCOME (LOSS) . . . . . . . .  $   (6,869)  $  (67,675)  $  (75,994)  $ (162,691)  $  (69,125)  $  (95,016)
                                    ===========  ===========  ===========  ===========  ===========  ===========

 NET INCOME (LOSS) PER SHARE . . .  $    (0.00)  $    (0.05)  $    (0.02)  $    (0.12)  $    (0.02)  $    (0.07)
                                    ===========  ===========  ===========  ===========  ===========  ===========

 WEIGHTED AVERAGE COMMON SHARES. .   3,647,208    1,315,391    3,647,208    1,315,391    3,647,208    1,315,391
                                    ===========  ===========  ===========  ===========  ===========  ===========
</TABLE>

      The accompanying notes are an integral part of these financial statements.

                                        3
<PAGE>

                               SOLAR ENERGY LIMITED
                          (a Development Stage Company)
                       CONSOLIDATED STATEMENTS OF CASH FLOW
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                           Six Months Ending
                                                                June 30,
                                                            2002        2001
<S>                                                       <C>        <C>
 CASH FLOWS FROM OPERATING ACTIVITIES
   Net Income (Loss) . . . . . . . . . . . . . . . . . .  $(75,994)  $(162,691)
   Adjustments to Reconcile Net Loss to Net Cash
     Provided by Operations:
       Depreciation and Amortization . . . . . . . . . .    11,158      10,170
       Minority Interest . . . . . . . . . . . . . . . .               (15,431)
     Change in Assets and Liabilities
        Increase (Decrease) in:
         Accounts Payable. . . . . . . . . . . . . . . .    (4,611)     31,172
         Accrued Expenses. . . . . . . . . . . . . . . .     1,018     (30,113)
       (Increase) Decrease in:
         Accounts Receivable . . . . . . . . . . . . . .     2,636          24
         Prepaid Expenses. . . . . . . . . . . . . . . .      (780)     (1,305)
                                                          ---------  ----------
   Net Cash Provided (Used) by Operating Activities. . .   (66,573)   (168,174)

   Cash Flows From Investing Activities
     Cash Paid for Patent Costs. . . . . . . . . . . . .      (940)     (4,478)
                                                          ---------  ----------
       Net Cash Provided (Used) by Investing Activities.      (940)     (4,478)

   Cash Flows from Financing Activities
     Proceeds from Debt Financing. . . . . . . . . . . .    57,742     188,567
                                                          ---------  ----------
       Net Cash Provided (Used) by Financing Activities.    57,742     188,567

   Net Increase (Decrease) in Cash and Cash Equivalents.    (9,771)     15,915

   Cash and Cash Equivalents - Beginning . . . . . . . .    23,741      38,331

   Cash and Cash Equivalents - Ending. . . . . . . . . .  $ 13,970   $  54,246
                                                          =========  ==========

   Cash Paid For:
     Interest. . . . . . . . . . . . . . . . . . . . . .  $      -   $       -
     Income Taxes. . . . . . . . . . . . . . . . . . . .  $      -   $       -
</TABLE>

      The accompanying notes are an integral part of these financial statements.

                                        4
<PAGE>

                              SOLAR ENERGY LIMITED
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                                  June 30, 2002


NOTE  1  -  BASIS  OF  FINANCIAL  STATEMENT  PRESENTATION

The accompanying unaudited condensed consolidated financial statements have been
prepared  by the Company pursuant to the rules and regulations of the Securities
and  Exchange Commission.  Certain information and footnote disclosures normally
included  in financial statements prepared in accordance with generally accepted
accounting  principles  have  been  condensed or omitted in accordance with such
rules  and  regulations.  The  information  furnished  in  the interim condensed
consolidated  financial  statements  include  normal  recurring  adjustments and
reflect  all adjustments, which, in the opinion of management, are necessary for
a  fair presentation of such financial statements.  Although management believes
the  disclosures  and information presented are adequate to make the information
not  misleading,  it  is  suggested  that  these  interim  condensed consolidate
financial  statements  be  read  in  conjunction  with the Company's most recent
Annual  Report  on Form 10-KSB.  Operating results for the six months ended June
30,  2002 are not necessarily indicative of the results that may be expected for
the  year  ending  December  31,  2002.


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND PLAN OF
                                   OPERATIONS.

We  are  a  research  and  development company with no revenues and no immediate
source  or  expectation  of  revenue  generation.  We have had no revenues since
inception.  We  have been funded by our shareholder investors.  Virtually all of
the  funding/working  capital raised to date has been allocated for research and
development  of  our  several prototype projects and to the administrative costs
associated  with  the  ongoing  requirements  of  maintaining  operations.  All
projects developed by us are experimental in nature and are recorded as research
and  development  expenses  and  general  and  administrative  expenses  related
thereto.

(A)     PLAN  OF OPERATION FOR THE NEXT TWELVE MONTHS.  Our Plan of Operation is
unchanged  from  the  Form  10-KSB for the year ended December 31, 2001 that was
filed  in  the  first quarter of 2002.  In that Form 10-KSB we explained that we
have  been  primarily  focused  on  three  projects,  two  of  which  have  been
transferred to Sun Power Corporation in exchange for future consideration.  This
remains  unchanged  as  of  the  date  of  the  filing  of  this  report.

The  project  that  remains  within the domain of Solar Energy Limited is called
MECH  which  is  a  patent  pending  concept  for an engine (or compressor) that

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<PAGE>

functions  with rolling friction rather than sliding friction, thus operating at
a  much  greater  efficiency  than  conventional  motors.  This project has been
advanced  somewhat  over the last year because of Phase I grant funding that was
received  from  the  US  Department  of  Agriculture  for purposes of performing
research  work on a solar irrigation pump using the MECH engine.  This grant was
for a total amount of approximately $70,000.  We have made application for Phase
II  grant  funds  that would be for approximately $200,000.  We will be notified
sometime  during the summer of 2002 whether or not we will be awarded the grant.
As of the date of the filing of this report we have not received notification of
any  kind  from  the  USDA.  There is no assurance that the Phase II grant funds
will  be  awarded  to  Solar  Energy  Limited.


    (1) CASH REQUIREMENTS AND NEED FOR ADDITIONAL FUNDS, TWELVE MONTHS.  We have
depended on and continue to depend on support from our principal shareholders to
cover  cash  shortfalls.  There  is  no  binding agreement by which these or any
shareholders,  lenders  or  new  investors are committed to continue funding our
research  and  development.  While  our  shareholders  have indicated no lack of
continuing  support, if our required funding is not provided, we may not be able
to  continue  as  a going concern.  We are seeking substantial funds in order to
meet  our  budgetary  requirements  for the furtherance of our projects over the
next  12  months.  If our requirements are not met in full, it may slow down our
research  and  development  and  reduce our expectations as to how soon we might
achieve  profitability.

    (2)  SUMMARY  OF  PRODUCT  RESEARCH  AND  DEVELOPMENT.  Please  refer to the
information  provided  in our Form 10-KSB filed for the year ending December 31,
2001  and  to  the  comments  that  briefly  update  that  information.

    (3)  EXPECTED  PURCHASE  OR  SALE  OF PLANT AND SIGNIFICANT EQUIPMENT.  None

    (4)  EXPECTED  SIGNIFICANT  CHANGE  IN  THE  NUMBER  OF  EMPLOYEES.  None.

(B)     DISCUSSION  AND  ANALYSIS  OF  FINANCIAL  CONDITION  AND  RESULTS  OF
OPERATIONS.  We  are  a research and development company with no revenues and no
immediate  source or expectation of revenue generation.  We have had no revenues
since  inception.  Expenses  for  the  six months ending June 30, 2002 were less
than  the  same period in the prior year only because we lacked funds to further
our  projects  in  the  current  year.

                                        6
<PAGE>

                           PART II:  OTHER INFORMATION

ITEM  1.  LEGAL  PROCEDINGS.  None

ITEM  2.  CHANGES  IN  SECURITIES.  None.

ITEM  4.  SUBMISSION  OF  MATTERS  TO  VOTE  OF  SECURITY  HOLDERS.  None

ITEM  5.  OTHER  INFORMATION.  SUBSEQUENT  EVENTS.  None

ITEM  6.  EXHIBITS  AND  REPORTS  ON  FORM  8-K.  None



                                   SIGNATURES

     Pursuant  to  the requirements of the Securities Exchange Act of 1934, this
Form 10-QSB Report for the Quarter ended June 30, 2002, has been signed below by
the  following person on behalf of the Registrant and in the capacity and on the
date  indicated.

Dated:  July  16,  2002


                              SOLAR ENERGY LIMITED


/s/  Dr.Melvin  L.  Prueitt
   Dr.  Melvin  L.  Prueitt
   Chairman/Director

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