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 SEPTEMBER 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  October 28, 2002, there were 3,647,208 shares of Common Stock issued and
outstanding.

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

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                         PART I:  FINANCIAL INFORMATION

                         ITEM 1.  FINANCIAL STATEMENTS.

The financial statements, for the nine months ended September 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>
                                                     September 30,  December 31,
                     ASSETS                              2002           2001
-------------------------------------------------------------------------------
                                                     (Unaudited)
<S>                                                  <C>           <C>
 Current Assets
   Cash and Cash Equivalents. . . . . . . . . . . .  $    30,358   $    23,741
   Accounts Receivable. . . . . . . . . . . . . . .       18,767        11,994
   Other Current Assets . . . . . . . . . . . . . .        1,375           400
                                                     ------------  ------------
     Total Current Assets . . . . . . . . . . . . .       50,500        36,135

 Property and Equipment, Net. . . . . . . . . . . .        6,237         9,234

 Other Assets
   Patent Costs . . . . . . . . . . . . . . . . . .       29,545        34,005
   Goodwill . . . . . . . . . . . . . . . . . . . .        8,608        16,948
   Deposits . . . . . . . . . . . . . . . . . . . .        4,837         4,837
                                                     ------------  ------------
     Total Other Assets . . . . . . . . . . . . . .       42,990        55,790

   Total Assets . . . . . . . . . . . . . . . . . .  $    99,727   $   101,159
                                                     ============  ============

 LIABILITIES AND STOCKHOLDERS EQUITY

 Current Liabilities
   Accounts Payable . . . . . . . . . . . . . . . .  $    82,653   $    90,940
   Accrued Liabilities. . . . . . . . . . . . . . .       78,907        70,537
   Notes Payable - Related Party. . . . . . . . . .      615,635       510,893
                                                     ------------  ------------
     Total Current Liabilities. . . . . . . . . . .      777,195       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   (3,358,604)   (3,252,347)
                                                     ------------  ------------
     Total Stockholders Equity. . . . . . . . . . .     (784,618)     (678,361)

   Total Liabilities and Stockholders Equity. . . .  $    99,727   $   101,159
                                                     ============  ============
</TABLE>

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

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<PAGE>

                               SOLAR ENERGY LIMITED
                          (a Development Stage Company)
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (Unaudited)
<TABLE>
<CAPTION>
                                       Three Months Ending       Nine Months Ending
                                          September 30,            September 30,
                                       2002         2001         2002         2001
                                    -----------  -----------  -----------  -----------
<S>                                 <C>          <C>          <C>          <C>

 NET SALES . . . . . . . . . . . .  $        -   $        -   $        -   $        -
 COST OF SALES
   GROSS PROFIT. . . . . . . . . .           -            -            -            -
 OPERATING EXPENSES
   General and Administrative and.     172,353      350,861
   Research and Development. . . .      29,346      105,350
                                    -----------  -----------
     Total Operating Expenses. . .      29,346      172,353      105,350      350,861
                                    -----------  -----------  -----------  -----------
       Operating Loss. . . . . . .     (29,346)    (172,353)    (105,350)    (350,861)
 OTHER INCOME (EXPENSE)
   Minority Interest . . . . . . .       7,574       23,005
   Interest Income . . . . . . . .        (916)     (19,874)        (906)     (19,487)
                                    -----------  -----------  -----------  -----------
     Total Other Income (Expense).        (916)     (12,300)        (906)       3,518

 NET INCOME (LOSS) . . . . . . . .  $  (30,262)  $ (184,653)  $ (106,256)  $ (347,343)
                                    ===========  ===========  ===========  ===========

 NET INCOME (LOSS) PER SHARE . . .  $    (0.01)  $    (0.14)  $    (0.03)  $    (0.26)
                                    ===========  ===========  ===========  ===========

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

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

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                               SOLAR ENERGY LIMITED
                          (a Development Stage Company)
                       CONSOLIDATED STATEMENTS OF CASH FLOW
                                   (Unaudited)
<TABLE>
<CAPTION>
                                                           Nine Months Ending
                                                              September 30,
                                                             2002        2001
                                                          ----------  ----------
<S>                                                       <C>         <C>
 CASH FLOWS FROM OPERATING ACTIVITIES
   Net Income (Loss) . . . . . . . . . . . . . . . . . .  $(106,256)  $(347,343)
   Adjustments to Reconcile Net Loss to Net Cash
     Provided by Operations:
       Depreciation and Amortization . . . . . . . . . .     16,737      24,708
       Minority Interest . . . . . . . . . . . . . . . .                (23,005)
     Gain on sale of investment . . . . . . . . . . . . .               (17,200)
        Increase (Decrease) in:
         Accounts Payable. . . . . . . . . . . . . . . .     (8,287)     38,711
         Accrued Expenses. . . . . . . . . . . . . . . .      8,370     (11,369)
       (Increase) Decrease in:
         Employee Advances . . . . . . . . . . . . . . .     (6,774)         39
         Prepaid Expenses. . . . . . . . . . . . . . . .       (975)        (12)
                                                          ----------  ----------
   Net Cash Provided (Used) by Operating Activities. . .    (97,185)   (318,271)

   Cash Flows From Investing Activities
     Cash Paid for Patent Costs. . . . . . . . . . . . .       (940)     (5,006)
                                                          ----------  ----------
       Net Cash Provided (Used) by Investing Activities.       (940)     (5,006)

   Cash Flows from Financing Activities
     Proceeds from advances. . . . . . . . . . . . . . .    104,742     280,690
                                                          ----------  ----------
       Net Cash Provided (Used) by Financing Activities.    104,742     324,690

   Net Increase (Decrease) in Cash and Cash Equivalents.      6,617       1,163

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

   Cash and Cash Equivalents - Ending. . . . . . . . . .  $  30,358   $  39,494
                                                          ==========  ==========

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

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

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                              SOLAR ENERGY LIMITED
                 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
                               September 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 nine months ended
September  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
functions  with rolling friction rather than sliding friction, thus operating at
a  much  greater efficiency than conventional motors.  This project was 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 made an application for a Phase II grant
but  it  was  not  accepted  by  the  USDA.


    (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 nine months ending September 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.

                           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

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<PAGE>

                                   SIGNATURES

     Pursuant  to  the requirements of the Securities Exchange Act of 1934, this
Form  10-QSB  Report  for  the Quarter ended September 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:  October  28,  2002


                              SOLAR ENERGY LIMITED


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

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--------------------------------------------------------------------------------

                                    Exhibit A

--------------------------------------------------------------------------------

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                    CERTIFICATION OF CHIEF EXECUTIVE OFFICER
                      PURSUANT TO 18 U.S.C. SECTION 1350,
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES OXLEY ACT OF 2002

In connection with the Quarterly Report of Solar Energy Limited (the Company) on
Form 10-QSB for the period ending September 30, 2002 as filed with the
Securities and Exchange Commission on the date hereof (the Report), I Dave Jones
Chief Executive Officer of the Company, certify pursuant to 18 U.S.C. 1350, as
adopted  pursuant to 906 of the Sarbanes Oxley Act of 2002, that to the best of
my knowledge and belief:

      1) The Report fully complies with the requirements of section 13(a) or
         15(d) of the Securities and Exchange Act of 1934; and

      2) The information contained in the Report fairly represents, in all
         material respects, the financial condition and result of operations
         of the Company.

IN WITNESS WHEREOF, the undersigned has executed this certification as of the

DATE: November 18, 2002


/s/David Jones
   David Jones
Chief Executive Officer

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