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 QUARTERLY PERIOD ENDED JUNE 30, 2001

                        Commission File Number:  1-30060

                              SOLAR ENERGY LIMITED

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  20,  2001,  there were 1,315,391 shares of Common Stock issued and
outstanding.

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

                                        1


                         PART I:  FINANCIAL INFORMATION

                         ITEM 1.  FINANCIAL STATEMENTS.

The  financial  statements,  for  the  six  months ended June 30, 2001, 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

                                        2


                               SOLAR ENERGY LIMITED
                          (a Development Stage Company)
                           CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
                                                    June 30,     December 31,
ASSETS                                                2001           2000
                                                  (Unaudited)
--------------------------------------------------------------------------------
<S>                                               <C>           <C>
 Current Assets
 Cash and Cash Equivalents . . . . . . . . . . .  $    54,246   $      38,331
 Employee Advance. . . . . . . . . . . . . . . .        1,360           1,384
 Other Current Assets. . . . . . . . . . . . . .        1,511             206
                                                  ------------  --------------
 Total Current Assets. . . . . . . . . . . . . .       57,117          39,921

 Property and Equipment, Net . . . . . . . . . .       31,610          35,610

 Other Assets
 Patent Costs. . . . . . . . . . . . . . . . . .       48,912          48,534
 Goodwill. . . . . . . . . . . . . . . . . . . .       25,288          33,328
 Deposits. . . . . . . . . . . . . . . . . . . .        4,837           4,837
                                                  ------------  --------------
 Total Other Assets. . . . . . . . . . . . . . .       79,037          86,699

 Total Assets. . . . . . . . . . . . . . . . . .  $   167,764   $     162,230
                                                  ============  ==============
 LIABILITIES AND STOCKHOLDERS EQUITY

 Current Liabilities
 Accounts Payable. . . . . . . . . . . . . . . .  $   191,291   $     166,089
 Accrued Liabilities . . . . . . . . . . . . . .       34,179          64,292
 Notes Payable - Related Party . . . . . . . . .      914,088         749,156
 Current Portion of Long Term Liabilites . . . .      104,480               0
                                                  ------------  --------------
 Total Current Liabilities . . . . . . . . . . .    1,244,038         979,537

 Long Term Liabilities
 Notes Payable . . . . . . . . . . . . . . . . .      123,635         100,000
 Less:  Current Portion of Long Term Liabilities     (104,480)              0
                                                  ------------  --------------
 Total Long Term Liabilities . . . . . . . . . .       19,155         100,000

 Minority Interest . . . . . . . . . . . . . . .      120,194         135,625

 Stockholders' Equity
 Common Stock, authorized 50,000,000 shares
 of $.0001 par value, issued and outstanding
 1,315,391 shares . . . . . . . . . . . . . . . .          132         1,315
 Additional Paid in Capital . . . . . . . . . . .    1,798,380     1,797,197
 Deficit Accumulated During the Development Stage   (3,014,135)   (2,851,444)
                                                   ------------  ------------
 Total Stockholders Equity. . . . . . . . . . . .   (1,215,623)   (1,052,932)

 Total Liabilities and Stockholders Equity. . . .  $   167,764   $   162,230
                                                   ============  ============
</TABLE>

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

                                        3


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

<TABLE>
<CAPTION>
                                            Three Months Ending                 Six Months Ending
                                                  June 30                            June 30
                                          2001              2000             2001             2000
-------------------------------------------------------------------------------------------------------
<S>                               <C>                    <C>          <C>                  <C>
 NET SALES . . . . . . . . . . .  $                  0   $        0   $                0   $        0
 COST OF SALES
 GROSS PROFIT. . . . . . . . . .                     0            0                    0            0
 OPERATING EXPENSES
 General and Administrative. . .                76,792      121,649              178,509      145,990
 Research and Development                            0      151,953                    0      359,473
                                  ---------------------  -----------  -------------------  -----------
 Total Operating Expenses. . . .                76,792      273,602              178,509      505,463
                                  ---------------------  -----------  -------------------  -----------
 Operating Loss. . . . . . . . .               (76,792)    (273,602)            (178,509)    (505,463)
 OTHER INCOME (EXPENSE)
 Gain on Sale of Investment                          0       17,200                    0       17,200
 Minority Interest . . . . . . .                 8,836            0               15,431            0
 Interest Income . . . . . . . .                   281        1,975                  387        3,483
                                  ---------------------  -----------  -------------------  -----------
 Total Other Income (Expense). .                 9,117       19,175               15,818       20,683
                                  ---------------------  -----------  -------------------  -----------
 NET INCOME (LOSS) . . . . . . .  $            (67,675)  $ (254,427)  $         (162,691)  $ (484,780)
                                  =====================  ===========  ===================  ===========
 NET INCOME (LOSS) PER SHARE . .  $              (0.05)  $    (0.19)  $            (0.12)  $    (0.37)
                                  =====================  ===========  ===================  ===========
 WEIGHTED AVERAGE COMMON SHARES.             1,315,391    1,315,391            1,315,391    1,315,391
                                  =====================  ===========  ===================  ===========
</TABLE>

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

                                        4


                               SOLAR ENERGY LIMITED
                          (a Development Stage Company)
                       CONSOLIDATED STATEMENTS OF CASH FLOW
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                          Six Months Ending
                                                                June 30
                                                           2001        2000
-------------------------------------------------------------------------------
<S>                                                     <C>         <C>
 CASH FLOWS FROM OPERATING ACTIVITIES
 Net Income (Loss) . . . . . . . . . . . . . . . . . .  $(162,691)  $(484,780)
 Adjustments to Reconcile Net Loss to Net Cash
 Provided by Operations:
 Depreciation and Amortization . . . . . . . . . . . .     10,170      39,096
 Minority Interest . . . . . . . . . . . . . . . . . .    (15,431)          0
 Gain on Sale of Investment                                     0     (17,200)
 Change in Assets and Liabilities
  Increase (Decrease) in:
 Accounts Payable. . . . . . . . . . . . . . . . . . .     31,172      (3,448)
 Accrued Expenses. . . . . . . . . . . . . . . . . . .    (30,113)     24,625
 (Increase) Decrease in:
 Employee Advances . . . . . . . . . . . . . . . . . .         24           0
 Prepaid Expenses. . . . . . . . . . . . . . . . . . .     (1,305)          0
                                                        ----------  ----------
 Net Cash Provided (Used) by Operating Activities. . .   (168,174)   (441,707)

 Cash Flows From Investing Activities
 Purchase of Property and Equipment. . . . . . . . . .          0     (27,761)
 Cash Paid for Patent Costs. . . . . . . . . . . . . .     (4,478)     (1,912)
 Cash Received on Sale of Subsidiary                            0     115,000
                                                    --------------  ----------
 Net Cash Provided (Used) by Investing Activities. . .     (4,478)     85,327

 Cash Flows from Financing Activities
 Common Stock issued for cash. . . . . . . . . . . . .          0           0
 Proceeds from Debt Financing. . . . . . . . . . . . .    188,567     225,970
                                                        ----------  ----------
 Net Cash Provided (Used) by Financing Activities. . .    188,567     225,970
                                                        ----------  ----------
 Net Increase (Decrease) in Cash and Cash Equivalents.     15,915    (130,410)

 Cash and Cash Equivalents - Beginning . . . . . . . .     38,331     263,371
                                                        ----------  ----------
 Cash and Cash Equivalents - Ending. . . . . . . . . .  $  54,246   $ 132,961
                                                        ==========  ==========

 Cash Paid For:
 Interest. . . . . . . . . . . . . . . . . . . . . . .  $       0   $       0
 Income Taxes. . . . . . . . . . . . . . . . . . . . .  $       0   $       0

 Non cash Investing Activities:
 Sale of investment in RECO for note receivable. . . .  $       0   $  65,000
</TABLE>

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

                                        5


                              SOLAR ENERGY LIMITED
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                                  June 30, 2001


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
reflects 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,  2001 are not necessarily indicative of the results that may be expected for
the  year  ending  December  31,  2001.

NOTE  2  -  SUBSEQUENT  EVENT

On  July  16,  2001,  the Board authorized a 10:1 reverse split of the Company's
common  stock.  These  financial  statements have been retroactively restated to
reflect  the  reverse  split.

On  July  16,  2001,  the Board authorized the conversion of $914,088 of related
party  long  term debt to common stock.  However, at the date of the 10Q filing,
the  number  of  shares  to be issued has not been determined and no adjustments
have  been  recorded  in  the  financial  statements  to reflect the conversion.

On  July  13,  2001,  the  Company entered into an agreement to sell 100% of its
wholly  owned  subsidiary,  Sunspring,  Inc., to Hyaton Organics, Inc. (Hyaton).
Hyaton  has agreed to issue 10,000,000 shares of its common stock to the Company
and  will provide no less than $1,000,000 of  working capital to Sunspring, Inc.

                                        6


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, 2000 that was
filed  in  the  first quarter of 2001.  In that Form 10-KSB we described that we
are  primarily  focused on three projects.  This remains accurate as of the date
of  the  filing  of  this  report  although our progress for the year-to-date is
slower  than we would have liked due to shortage of funding.  However, there has
been  some  progress  which  can  be  summarized  as  follows:

a.)      Solarec  -  Renewable  Energy  Limited  (REEL),  our  majority  owned
subsidiary,  wholly  owns  this  patented  project.  Continued  testing  of  the
prototype  project  has  taken  place  and results remain positive. Solarec is a
concept  that  uses only solar energy plus carbon dioxide from the atmosphere to
commercially  manufacture  a  clean  fuel  with  electricity as a byproduct. Our
immediate  goal  is  to  build  a  larger working prototype such that commercial
quantities  of  pristine  fuels can be produced. This project is delayed pending
funding.

b.)     Our  second  project  is called H2ONOW. This project involves the use of
solar  energy  to  produce  potable  water  from sea or brackish water through a
process  of  desalination. Our goal is to develop facilities whereby fresh water
can  be  produced  at  a  cost  of  $.50 per 1000 gallons or less which would be
suitable  for  drinking  and also inexpensive enough to be used for agricultural
purposes.  We  have  built  a  small prototype facility and performed successful
testing  and  our next goal is to build a larger full-scale prototype that would
produce  marketable  quantities  of  water. This project has been delayed due to
lack  of  funding.  However, we have had discussions with a major corporation or
other  investment  entities that would involve them providing the capital needed
to  develop  this  project. These discussions are preliminary and it is much too
early  to  speculate  as  to  whether  we  will be able to successfully reach an
agreement.  SEE  ITEM  5 BELOW REGARDING AN IMPORTANT EVENT INVOLVING SUNSPRING.

                                        7


c.)     Our  third  project is called MECH which is a patent pending concept for
an  engine  (or  compressor)  that  functions  with rolling friction rather than
sliding  friction, thus operating at a much greater efficiency than conventional
motors. We have not advanced this project as far as we would have liked over the
last  6  months,  again due to lack of funding, but we have received grant funds
from  the  US  Department  of  Agriculture  in  order to advance work on a solar
irrigation  pump  using  the  MECH  engine.  This  work  is  currently  ongoing.


    (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 between from $3 to $5 million
dollars  of  capital  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,
2000  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, 2001 were less than
the  same  period  in the prior year only because we lacked funds to further our
projects  in  the  current  year.  This  comment  is the same for the comparable
3-month  periods  ending  in  June.

                                        8


                           PART II:  OTHER INFORMATION

ITEM  1.  LEGAL  PROCEDINGS.  None

ITEM  2.  CHANGES  IN  SECURITIES.  None.  (See  ITEM  5.  OTHER  INFORMATION.
SUBSEQUENT  EVENTS)

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

ITEM  5.  OTHER INFORMATION.  SUBSEQUENT EVENTS.   On July 16, 2001 we announced
a  10:1 reverse stock split. This split applies to shares owned of record at the
close of business on July 19, 2001. The effective date for the split is July 20,
2001.  A  mandatory  share  exchange  was required to effect this reverse split,
therefore shareholders of the record date are required to surrender their shares
to  the  company's  transfer agent for re-issuance. The split will be payable on
surrender  of  the shares.  Pursuant to the mandatory share exchange, the symbol
of  Solar  Energy  will  be  changed  to  SLRE.

On  July  13,  2001,  the  Company entered into an agreement to sell 100% of its
wholly  owned  subsidiary, Sunspring, Inc., to Hyaton Organics, Inc. In exchange
for  an  agreement to issue 10 million shares of stock in Hyaton to Solar Energy
Limited, Hyaton has agreed to provide no less than $1,000,000 of working capital
to  Sunspring. The 10,000,000 shares of Hyaton stock issued to Solar Energy will
not  result  in  a  change  of control. This amount of money plus commitments to
provide  additional  funds if certain conditions are met will allow Sunspring to
further  the development of Sunspring's patent pending process called H2O NOW as
described  above  under  Item  2.

On July 20, 2001, the Board was presented with a proposal to convert $914,088 of
related  party debt to common stock. However, at the date of the 10Q filing, the
Board had not yet given their formal approval to this transaction and the number
of  shares  to  be  issued  has  not  yet  been  determined

ITEM  6.  EXHIBITS  AND  REPORTS  ON FORM 8-K.  The potential sale of Sunspring,
Inc.  to Hyaton Organics, Inc. reported above under Item 5 will be reported on a
Form  8-K  upon  closing  of  the  transaction.


               THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK

                                        9


                                   SIGNATURES

     Pursuant  to  the requirements of the Securities Exchange Act of 1934, this
Form 10-QSB Report for the Quarter ended June 30, 2001, has been signed below by
the  following person on behalf of the Registrant and in the capacity and on the
date  indicated.

Dated:  August  8,  2001


                              SOLAR ENERGY LIMITED





/s/Dr. Melvin Prueitt             /s/Joel S. Dumaresq
   Dr.  Melvin  L.  Prueitt          Joel  S.  Dumaresq
   Chairman/Director                 President/Director


/s/Norman Wareham                     /s/David F. Jones
   Norman  Wareham                       David  F.  Jones
   Secretary/Treasurer/Director          Director


/s/Anthony  R.  Tucker
   Anthony  R.  Tucker
   Controller

                                       10