FORM 10-QSB

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


[X]  QUARTERLY  REPORT  PURSUANT TO SECTION 13 OF THE SECURITIES EXCHANGE ACT OF
1934

                      For the Quarter ended March 31, 1999

                         Commission File Number: 1-14791

                              SOLAR ENERGY LIMITED

                         (formerly Salvage World, Inc. )
                      (originally Taurus Enterprises, Inc.)

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:         (604)  257-3602

Securities  registered  pursuant  to  Section  12(b)  of  the  Act:         None

Securities  registered pursuant to Section 12(g) of the Act: 3/31/99  11,903,911

Yes[x]   No[]  (Indicate  by check mark whether the Registrant (1) has filed all
reports  required  to be filed by Section 13 or 15(d) of the Securities Exchange
Act  of 1934 during the preceding 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.)

As  of  March  31,  1999  the  number  of  shares  outstanding  of
the  Registrant's  Common  Stock  was  11,903,911

                                        1
<PAGE>

                                  INTRODUCTION

     Our  1934  Securities  Exchange  Act  registration  of our common stock has
become  effective  during  1999,  but  has not yet cleared final comments by the
Staff  of  the  Securities  and  Exchange  Commission.

--------------------------------------------------------------------------------
                          PART I: FINANCIAL INFORMATION
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
                         ITEM 1.   FINANCIAL STATEMENTS.
--------------------------------------------------------------------------------

     Attached  hereto and incorporated herein by this reference are consolidated
unaudited  financial  statements  under  cover  of  Exhibit 99QF-1 for the three
months  ended  March  31,  1999.

       ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

 (A)  PLAN  OF  OPERATION  FOR  THE  NEXT  TWELVE  MONTHS.

CASH  REQUIREMENTS  AND OF NEED FOR ADDITIONAL FUNDS, TWELVE MONTHS. This Issuer
has  had no revenues since inception. It has been funded by investors. Virtually
all  of  the  funding/working  capital  raised  to  date  has been allocated for
research  and  development  of our several prototype projects. We have minimally
sufficient  funds  to  continue  for the next 12 months. Each of our projects is
sufficiently partially or fully funded, sufficiently for the next 12 months. Our
minimally  sufficient funds are not deemed adequate for the optimal requirements
of  our  Corporation. Due to the large number of potentially viable projects, we
are  exploring  methods  of  maximizing  our  potential  by  additional  capital
formation. We are looking at converting one or more of our projects into its own
subsidiary,  and  preparing  one  or  more initial public offerings. In any such
program,  we would either retain majority control of the resulting pubic company
or  companies;  or  we  would  distribute  the  shares of the new company to our
shareholders,  pro-rata,  in  connection  with  a  registered public offering of
shares.  We  estimate  that  we  need  a  million dollars optimally. We are also
exploring  raising  funds  in  an  additional  limited  offering  and/or private
placement  to  highly  sophisticated  accredited  investors.  We  have  not  yet
determined  what  capital  program is in the best interests of our shareholders.

 (B)  DISCUSSION  AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
We  are  a development stage company. Our activities to date consist entirely of
research  and  development.

--------------------------------------------------------------------------------
                           PART II: OTHER INFORMATION
--------------------------------------------------------------------------------

                                        2
<PAGE>

                           ITEM 1.  LEGAL PROCEEDINGS

                                      None

                          ITEM 2.  CHANGE IN SECURITIES

                                      None

                    ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

                                      None

           ITEM 4.  SUBMISSION OF MATTERS TO VOTE OF SECURITY HOLDERS

                                      None

                           ITEM 5.  OTHER INFORMATION

                                      None

                          ITEM 6.  REPORTS ON FORM 8-K

                                      None

                                    EXHIBITS

     Attached  hereto and incorporated herein by this reference are consolidated
unaudited  financial  statements  under  cover  of  Exhibit 99QF-1 for the three
months  ended  March  31,  1999.


                                   SIGNATURES


     Pursuant  to  the requirements of the Securities Exchange Act of 1934, this
Form  10-QSB  Report for the Quarter ended March 31, 1999, has been signed below
by  the  following person on behalf of the Registrant and in the capacity and on
the  date  indicated.


Dated:  March  31,  1999
                              SOLAR ENERGY LIMITED

                         (formerly Salvage World, Inc. )
                      (originally Taurus Enterprises, Inc.)

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


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

                                        3
<PAGE>
--------------------------------------------------------------------------------
                                 EXHIBIT 99QF-1

                         UN-AUDITED FINANCIAL STATEMENTS
                    FOR THE THREE MONTHS ENDED MARCH 31, 1999
--------------------------------------------------------------------------------

                                        4
<PAGE>

                               SOLAR ENERGY, LTD.
                           BALANCE SHEETS (UNAUDITED)
              For the fiscal years ended December 31, 1997 and 1998
                  And for the three months ended March 31, 1999

<TABLE>
<CAPTION>
<S>                                                     <C>          <C>         <C>
                                                           March 31,         December 31,
                                                              1999        1998       1997
                                                        -----------  ----------  ---------
CURRENT ASSETS
Cash                                                    $  373,486   $ 286,627   $      0
Employee advance                                               -0-         213        -0-
Notes receivable                                               -0-      50,000        -0-
                                                        -----------  ----------  ---------
Total Current Assets                                       373,486     336,840        -0-
                                                        -----------  ----------  ---------
Property & Equipment                                        25,297      16,653        -0-
                                                        -----------  ----------  ---------
OTHER ASSETS
Organization costs                                             -0-       2,181        -0-
Patent costs                                                17,344       9,808        -0-
Goodwill                                                    75,713      66,677        -0-
Deposits                                                     4,537       3,537        500
                                                        -----------  ----------  ---------
                                                            97,594      82,203        500
                                                        -----------  ----------  ---------
TOTAL ASSETS                                            $  496,377   $ 435,696   $    500
                                                        ===========  ==========  =========
LIABILITIES
Accounts payable                                            58,973      44,236          0
Accrued liabilities                                         16,183      15,154          0
Notes payable - related party                              399,685     210,252        -0-
                                                        -----------  ----------  ---------
Total Liabilities                                          474,841     269,642        -0-
STOCKHOLDERS' EQUITY
Common Stock, $.0001 par value; authorized 50,000,000
   shares; issued and outstanding, 11,903,911
   11,903,911 and 1,278,511 shares respectively              1,190       1,190        128
Additional Paid in Capital                                 953,322     953,323     29,385
Accumulated Surplus (Deficit)                             (932,976)   (788,459)   (29,013)
                                                        -----------  ----------  ---------
Total Stockholders' Equity                                  21,536     166,054        500
                                                        -----------  ----------  ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY              $  496,377   $ 435,696   $    500
                                                        ===========  ==========  =========
</TABLE>

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

                                        5
<PAGE>

                               SOLAR ENERGY, LTD.
             STATEMENTS OF LOSS AND ACCUMULATED DEFICIT (UNAUDITED)
              For the fiscal years ended December 31, 1997 and 1998
                  And for the three months ended March 31, 1999

<TABLE>
<CAPTION>
<S>                        <C>           <C>                   <C>          <C>
                                                                             Comulative
                                                    For the years              Total
                               March 31,           ended December 31,          Since
                                1999                 1998         1997      Inception
                           ------------  --------------------  -----------  -----------
Revenues:                  $         0   $                 0   $        0   $        0
Expenses:
Amortization                    16,995                19,866          500       38,861
Bad Debt                           -0-               225,000          -0-      225,000
Bank Charges                       288                   983          -0-        1,271
Consulting                      10,407                16,675          -0-       29,300
Depreciation                     1,629                   -0-          -0-        1,629
Filing Fees                        -0-                   -0-          -0-          235
Financial Services               1,500                   -0-        3,500       13,540
Interest expense                   -0-                15,923          -0-       15,923
Legal and accounting             6,774                90,089          -0-      109,363
Notary                             -0-                   -0-          -0-           20
Office                           1,115                 3,072          -0-        4,187
Promotion                          -0-                15,666          -0-       15,666
Research and development       105,223               288,088          -0-      393,311
Travel                           2,655                89,328          -0-       91,983
                           ------------  --------------------  -----------  -----------
Total Expenses                 146,586               764,690        4,000      940,289
                           ------------  --------------------  -----------  -----------
Other Income (Expenses)
Interest Income                  2,069                 5,244          -0-        7,313
                           ------------  --------------------  -----------  -----------
Net Income (Loss)            ($144,517)            ($759,446)     ($4,000)   ($932,976)
                           ============  ====================  ===========  ===========
Loss per Share               ($0.01214)            ($0.14706)   ($0.00313)   ($0.72974)
                           ============  ====================  ===========  ===========
Weighted average number
of shares outstanding:      11,903,911             5,164,228    1,278,511    1,278,511
                           ============  ====================  ===========  ===========
</TABLE>
   The accompanying notes are an integral part of these financial statements.

                                        6
<PAGE>

                               SOLAR ENERGY, LTD.
            STATEMENTS OF STOCKHOLDERS' EQUITY  (DEFICIT) (UNAUDITED)
    For the period from inception of the Development Stage on January 5, 1994
              For the fiscal years ended December 31, 1997 and 1998
                  And for the three months ended March 31, 1999

<TABLE>
<CAPTION>
<S>                                     <C>         <C>     <C>           <C>            <C>
                                                            Additional    Accumulated    Total Stock-
                                        Common      Par     Paid-In       Equity         holders' Equity
                                        Stock       Value   Capital           (Deficit)          (Deficit)
                                        ----------  ------  ------------  -------------  -----------------
Inception (January 5, 1994)                      0  $    0  $         0   $          0   $               0
Inception through December
31, 1994: Stock issued for
cash and services                        1,250,000     125        2,375           (500)              2,000
Year ended December 31, 1994             1,250,000     125        2,375           (500)              2,000
Net Loss December 31, 1995                       0       0            0           (500)                  0
Year ended December 31, 1995             1,250,000     125        2,375         (1,000)              1,500
August 14, 1996, Shares issued
for cash at $2.00                           13,000       1       25,999              0                   0
August 14, 1996, Shares issued
for cash at $0.00458                         8,312       1          761              0                   0
October 29, 1996, Shares issued
for cash at $0.01                            1,250       0          251              0                   0
Stock split rounding adjustment              5,949       1           (1)             0                   0
Net Loss December 31, 1996                       0       0            0        (24,013)                  0
Year ended December 31, 1996             1,278,511     128       29,385        (25,013)              4,500
Net Loss December 31, 1997                       0       0            0         (4,000)                  0
Balances at December 31, 1997            1,278,511     128       29,385        (29,013)                500
January, 1998, Shares issued for
acquisition of Hydro-Air Technologies      700,400      70          (70)             0                   0
January, 1998, Shares issued
for cash @ $0.10                         7,800,000     780      779,220              0                   0
January, 1998, Shares issued
for cash at $1.00 each                     125,000      13      124,988              0                   0
November, 1998, Shares issued
for cash @ $0.01                         2,000,000     200       19,800              0                   0
Net Loss December 31, 1998                       0       0            0       (759,446)                  0
Balances at December 31, 1998           11,903,911   1,190      953,322       (788,459)            166,054
Net Loss March 31, 1999                          0       0            0       (144,517)                  0
Balances at March 31, 1999              11,903,911   1,190      953,322       (932,976)             21,537
</TABLE>
   The accompanying notes are an integral part of these financial statements.

                                        7
<PAGE>

                               SOLAR ENERGY, LTD.
                       STATEMENTS OF CASH FLOW (UNAUDITED)
              For the fiscal years ended December 31, 1997 and 1998
                  And for the three months ended March 31, 1999

<TABLE>
<CAPTION>
<S>                                         <C>          <C>          <C>        <C>
                                                                                   January 5,
                                                                                 1994 (inception
                                                                                      of the
                                                                                    development
                                                                                     stage) to
                                               March 31,         December 31,         March 31,
                                                  1999         1998       1997          1999
                                            -----------  -----------  ---------  -----------------
Cash Flows from Operating Activities
Net Income (Loss)                            ($146,586)   ($759,446)   ($4,000)         ($935,045)
Add changes not affecting
working capital:
Amortization and Depreciacion                   18,624       21,968        500             42,592
Increase (Decrease) in:
Employee advance                                   213         (176)       -0-                -0-
Accounts Payable                                14,321       34,770        -0-             58,557
Accrued expenses                                 1,029       15,154        -0-             16,183
                                            -----------  -----------  ---------  -----------------
Total working capital (used)                  (112,399)    (687,730)    (3,500)               -0-
                                            -----------  -----------  ---------  -----------------
Cash Flows from Investment Activities
Cash acquired from subsidiary                   42,733      204,956        -0-            247,689
Cash paid for patent costs                      (7,536)      (3,917)       -0-            (11,453)
Cash paid for property & equipment             (17,378)      (8,397)       -0-            (25,775)
Cash paid for Deposits                          (1,000)      (3,537)       -0-             (4,537)
Cash paid for on notes receivable                  -0-      (50,000)       -0-            (50,000)
                                            -----------  -----------  ---------  -----------------
Net Cash Provided by Investing Activities       16,819      139,105        -0-                -0-
                                            -----------  -----------  ---------  -----------------
Cash Flows from Financing Activities
Issued common stock for cash                       -0-      925,000        -0-            952,013
Cash received on advance by shareholders       182,439      410,252        -0-            592,691
Cash paid on debt financing                        -0-     (500,000)       -0-           (500,000)
                                            -----------  -----------  ---------  -----------------
Net Cash Provided by Financing Activities      182,439      835,252        -0-                -0-
                                            -----------  -----------  ---------  -----------------
Net increase (decrease) in cash                 86,859      286,627     (3,500)           373,486
Cash, beginning of period                      286,627          -0-      3,500                -0-
                                            -----------  -----------  ---------  -----------------
Cash, end of period                         $  373,486   $  286,627   $      0   $        373,486
                                            ===========  ===========  =========  =================
Supplemental Cash Flow Information
Cash paid for:
Interest                                    $        0   $   15,923   $      0   $         15,923
Taxes                                       $        0   $        0   $      0   $              0
</TABLE>
   The accompanying notes are an integral part of these financial statements.

                                        8
<PAGE>
                              SOLAR ENERGY LIMITED
                         (formerly Salvage World, Inc.)
                          (a Development Stage Company)
                 Notes to The Consolidated Financial Statements
                  December 31, 1997 and 1998 and March 31, 1999

NOTE  1  -  Summary  of  Significant  Accounting  Policies

     a.  Organization

Solar  Energy  Limited  ("the  Company") was incorporated as Taurus Enterprises,
Inc.  under  the  laws of the State of Delaware on January 5, 1994.  The Company
was organized primarily for the purpose of operating a used automobile brokerage
firm.  The  Company  did  not  become  operational and abandoned its attempts to
establish  the  brokerage  operation.

In  August of 1996 its shareholders decided to reactivate the Company, merge the
Company  with Salvage World, Inc., a private company, change the name to Salvage
World,  Inc.  and  reincorporate  in  the  state  of  Nevada.

On  December  17,  1997  the  Company merged with Solar Energy Limited (Solar) a
Delaware  corporation  organized  on July 24, 1997 and changed the name to Solar
Energy  Limited.  The  surviving corporation is the Delaware corporation and the
authorized  shares  were  changed  to  50,000,000  par  value  $.0001.  Solar's
headquarters  are  located  in  Los  Alamos,  New  Mexico.

On January 1, 1998 the Company issued the initial 170,400 shares of stock and on
October  21, 1998 an additional 530,000 share were issued for the acquisition of
100%  of Hydro-Air Technologies, Inc. (Hydro) a New Mexico corporation organized
June  18,  1997.  Hydro  owns  various  rights to patented intellectual property
called Hydro-Air Renewable Power System ("HARPS"), and has developed a prototype
system  to  generate  electricity  from  the  evaporation  of  water.  Hydro's
headquarters  are  located in Los Alamos, New Mexico.  This business combination
was  accounted  using  the  purchase  method.

In  January 1999 the Company authorized the issuance 350,000 shares of stock for
the  acquisition  of  100%  of  Renewable Energy Corporation (RECO) a New Mexico
corporation  organized  November 30, 1998.  RECO owns various rights to patented
intellectual  property  associated  with  the  solar  recycling  of CO2 to fuel.
RECO's  headquarters  are  located in Los Alamos, New Mexico.  These shares were
issued  in  April,  1999.

The  Company  is  in  the  development  stage  according to Financial Accounting
Standards  Board  Statement  No.  7  and  is currently focusing its attention on
raising  capital  in  order  to  pursue  its  goals.

     b.  Accounting  Method

The  Company  recognizes income and expenses on the accrual basis of accounting.

                                        9
<PAGE>

                              SOLAR ENERGY LIMITED
                          (formerly Salvage World, Inc.)
                          (a Development Stage Company)
                 Notes to the Consolidated Financial Statements
                  December 31, 1997 and 1998 and March 31, 1999

NOTE  1  -  Summary  of  Significant  Accounting  Policies  (Continued)

     c.  Earnings  (Loss)  Per  Share

The  computation  of earnings per share of common stock is based on the weighted
average  number  of  shares outstanding at the date of the financial statements.
Fully  diluted  earnings per share is not presented because it is anti-dilutive.

     d.  Cash  and  Cash  Equivalents

The  Company  considers  all  highly liquid investments with maturities of three
months  or  less  to  be  cash  equivalents.

     e.  Provision  for  Income  Taxes

No  provision  for  income  taxes  has  been  recorded due to net operating loss
carryforwards totaling approximately $932,976 that will be offset against future
taxable  income.  These  NOL carryforwards begin to expire in the year 2009.  No
tax  benefit  has  been reported in the financial statements because the Company
believes  there  is a 50% or greater chance the carryforward will expire unused.

Deferred  tax  assets  and the valuation account is as follows at March 31, 1999
and  1998.

                           1999           1998
                           ----           ----
Deferred  tax  asset:
NOL  carrryforward       $317,212      $268,076
Valuation  allowance     (317,212)     (268,076)
                         --------      --------
Total                    $      0       $     0

     f.  Organization  Costs

The  Company  incurred $2,500 of organization costs in 1994.  These costs, which
were paid by shareholders of the Company, were exchanged for 1,250,000 shares of
common  stock.  Organization costs are being amortized on a straight line method
over  a  60 month period.  These costs will be recovered only if, the Company is
able  to generate a positive cash flow from operations.  Hydro incurred costs of
$3,116  for  their  organization.  All organizational costs were fully amortized
during  1999  to  conform  with  recently  issued  accounting  standards.

                                       10
<PAGE>

                               SOLAR  ENERGY  LIMITED
                          (formerly Salvage World, Inc.)
                          (a Development Stage Company)
                 Notes to the Consolidated Financial Statements
                  December 31, 1997 and 1998 and March 31, 1999

NOTE  1  -  Summary  of  Significant  Accounting  Policies  (Continued)

     g.  Use  of  estimates

The  preparation  of  financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect  reported  amounts  of  assets  and liabilities, disclosure of contingent
assets  and liabilities at the date of the financial statements and revenues and
expenses  during  the  reporting  period.  In these financial statements, assets
involve  extensive  reliance  on  management's  estimates.  Actual results could
differ  from  those  estimates.

     h.  Principles  of  Consolidation

The  Consolidated  Financial  Statements  include  the  accounts of Solar Energy
Limited  and  its  wholly owned subsidiaries Hydro-Air Technologies, Inc.  (1999
and  1998)  and  Renewable  Energy  Corporation  (1999  only).  All intercompany
accounts  and  transactions  have  been  eliminated  in  the  consolidation.

NOTE  2  -  Going  Concern

 The  accompanying  financial  statements  have  been prepared assuming that the
Company  will  continue  as  a  going  concern.  The  Company  has had recurring
operating  losses  for the past several years and is dependent upon financing to
continue  operations.  The  financial  statements do not include any adjustments
that might result from the outcome of this uncertainty.  It is management's plan
to  raise sufficient funds to develop the next phase of the HARPS Technology and
then  begin  to  manufacture  and  market  the  HARPS  Power  system.

NOTE  3  -  Development  Stage  Company

The  Company  is  a development stage company as defined in Financial Accounting
Standards  Board  Statement No. 7.  It is concentrating substantially all of its
efforts  in  raising  capital and developing its business operations in order to
generate  significant  revenues.

NOTE  4  -  Stockholders'  Equity  Transactions

Pursuant  to  the  plan  or reorganization and merger agreement dated August 20,
1996,  the  Company  merged  Taurus  Enterprises,  Inc.  (a public company) with
Salvage  World,  Inc.  (a private company).  The shareholders of Taurus returned
their  stock  and received stock in the new combined entity named Salvage World,
Inc.  The  Company  changed  the  par  value  of its common stock from $.0001 to
$.001.

                                       11
<PAGE>

                              SOLAR  ENERGY  LIMITED
                          (formerly Salvage World, Inc.)
                          (a Development Stage Company)
                 Notes to the Consolidated Financial Statements
                  December 31, 1997 and 1998 and March 31, 1999

NOTE  4  -  Stockholders'  Equity  Transactions  (continued)

Pursuant  to  the  merger  agreement dated December 17, 1997, the Company merged
with Solar Energy Limited and the shareholders of Salvage received shares in the
new combined Solar entity.  The  Company then changed the par back to $.0001 and
the new authorized capital became 50,000,000.  The Board then authorized a 1 for
20  reverse  stock  split.  These  financial  statements have been retroactively
restated  to  reflect  the  split.

The  Company  has issued 700,400 shares of stock to acquire 100% of the stock of
Hydro-Air  Technologies.  The  acquisition  agreement  between  the  Company and
Hydro-Air Technologies provides an initial issuance of stock at the beginning of
phase one, and additional issuances throughout the development process to arrive
at no less than 4,000,000 shares or 40% of the outstanding stock.  Because Hydro
had  a  negative equity position goodwill was recorded and no value was assigned
to  the  stock  issued.

The Company issued 7,800,000 shares of common stock at $.10 and 2,000,000 shares
of  common  stock at $.01 in an exempt 504 offering which raised $800,000 during
1998.

The  Company  also  issued  125,000 shares of common stock for $125,000 in a 505
exempt  offering.

NOTE  5  -  Property  &  Equipment

Property  and  equipment  consists  of the following at March 31, 1999 and 1998:

                                              1999                 1998
                                             ------               ------
Office  Equipment  &  Furniture             $26,496              $11,020
Tools                                         1,539                1,539
Auto                                          6,522                6,522
                                            -------               ------
                                             34,557               19,081
     Accumulated  Depreciation               (9,260)             (2,428)
     Net  Property  &  Equipment            $25,297              $16,653


Depreciation  expense  for the years ended March 31, 1999 and 1998 is $6,516 and
$2,102,  respectively.

NOTE  6  -  Patent  Costs

The Company has incurred legal costs in connection with the Patent process which
the  Company  has  rights  to,  and has therefore capitalized those costs and is
amortizing  them  over a five year period.  Amortization expense attributable to
patents  during  1999  and  1998  was  $7,312  and  $778,  respectively.

                                       12
<PAGE>

                              SOLAR ENERGY LIMITED
                          (formerly Salvage World, Inc.)
                          (a Development Stage Company)
                 Notes to the Consolidated Financial Statements
                  December 31, 1997 and 1998 and March 31, 1999

NOTE  7  -  Goodwill

The  Company  recorded Goodwill in connection with the acquisition of Hydro, due
to  the negative equity position of Hydro.  A total of $83,346 was recorded upon
acquisition  and  is  being  amortized over a 5 year period.  The realization of
this  asset  is  contingent  upon  Hydro's ability to generate revenues from the
HARPS  process.

The  Company  also  recorded Goodwill in connection with the acquisition of RECO
due  to  the negative equity position of RECO.  A total of $439,900 was recorded
upon acquisition and is being amortized over a ten year period.  The realization
of  this  asset  is contingent upon RECO's ability to generate revenues from the
Solar  Energy  process.
NOTE  8  -  Notes  Payable  -  Related  Party

FCIC a shareholder of the Company advanced $300,000 to Hydro Air during 1997 and
$200,000 to the Company during 1998 for phase one expense requirements. $500,000
has  been  paid  back,  leaving  a  $0  balance  due  at  December  31,  1998.

Cesare  Bette, a shareholder, loaned the Company $100,000 during 1998 as a short
term  working  capital  loan.  The  advance  was  repaid  in  February  1999.

Baycove  Investments,  Ltd.,  a  shareholder,  loaned  the  Company $308,387 and
$110,252 during 1999 and 1998, respectively.  The loans are non-interest bearing
and  due  upon demand.  The balance of these loans at March 31, 1999 and 1998 is
$418,639  and  $110,252,  respectively

Reed Jensen, a shareholder, loaned the Company $20,000 during 1999.  The loan is
non-interest  bearing and due upon demand.  The Company made payments of $10,000
on  the  loan  and  the  balance  due  at  March  31,  1999  is  $10,000.

NOTE  9  -  Notes  Receivable/Acquisition  of  RECO

Pursuant  to  a  purchase  agreement  between  the  Company and Renewable Energy
Corporation  (RECO)  the  Company  advanced  $50,000 during 1998 as an unsecured
loan.  Upon  the  closing  at January 31, 1999, $30,000 of the loan converted to
equity  of  RECO  and  the Company became 100% owners of the common stock.   The
remaining  $20,000  of  the unsecured loan was advanced for startup costs and is
considered as a cost of the investment in RECO.  According to the agreement, the
Company  issued  350,000  shares  to  the  shareholders  of RECO.  This business
combination  was  accounted  for  using  the  purchase  method.

NOTE  9  -  Notes  Receivable/Acquisition  of  RECO  (continued)

In  addition,  the  agreement  specifies  a commitment by the Company to provide
working  capital  loans  of  $5,700,000  to  it' subsidiaries throughout various
phases  of  development.

                                       13
<PAGE>

                              SOLAR ENERGY LIMITED
                          (formerly Salvage World, Inc.)
                          (a Development Stage Company)
                 Notes to the Consolidated Financial Statements
                  December 31, 1997 and 1998 and March 31, 1999

NOTE  10  -  Commitments

The  founder  of  the HARPS technology has granted Hydro an exclusive license to
develop, manufacture and market the same.  For the license Hydro is committed to
a  1%  royalty  on  gross sales of the units and 1/2% royalty on the sale of the
electrical  power  generated  by  any  power  plants  owned  by  Hydro.

The  Company  is  committed to an operating lease for office space in Los Almos,
New  Mexico  that  expires in August 2000.  Future minimum lease payments are as
follows  at  March  31,  1999.

     2000      $          18,400
               -          ------
     Total     $          18,400
               =          ======

NOTE  11  -  Fair  Value  of  Financial  Instruments

Unless  otherwise  indicated,  the  fair  values  of  all  reported  assets  and
liabilities  which  represent  financial instruments (none of which are held for
trading  purposes)  approximate  the  carrying  values  of  such  amounts.

Based  on  borrowing  rates  currently  available  to the Company for loans with
similar  terms,  the