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 March 31, 2003





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)**(505) 672-2000**Registrants telephone number, including area code








As of May 24, 2003, there were 3,703,321 shares of Common Stock issued and outstanding.





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





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**PART I: FINANCIAL INFORMATION**





ITEM 1. FINANCIAL STATEMENTS.





The financial statements for the three months ended March 31, 2003, 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**


March 31,


December 31,2003


2002(Unaudited)ASSETSCurrent AssetsCash and Cash Equivalents

$
46,555

$
30,516Other Current Assets


595


595Total Current Assets


47,150


31,111Property and Equipment, Net


19,895


22,084Other AssetsPatent Costs


73,829


78,629Goodwill


68,243


68,243Deposits


4,837


4,837Total Other Assets


146,909


151,709Total Assets

$
213,954

$
204,904LIABILITIES AND STOCKHOLDERS EQUITYCurrent LiabilitiesAccounts Payable

$
83,534

$
83,643Accrued Liabilities


261,385


241,503Notes Payable - Related Party


728,035


647,015Total Current Liabilities


1,072,954


972,161Minority Interest


88,821


107,150Stockholders' EquityCommon Stock, authorized 50,000,000 sharesof $.0001 par value, issued and outstanding3,703,321 shares


371


371Additional Paid in Capital


2,590,615


2,590,615Deficit Accumulated During the Development Stage


(3,538,807
)

(3,465,393
)Total Stockholders Equity


(947,821
)

(874,407
)Total Liabilities and Stockholders Equity

$
213,954

$
204,904




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


(Unaudited)
   Three Months EndingMarch 31,2003


2002NET SALES

$
-

$
-COST OF SALESGROSS PROFIT


-


-OPERATING EXPENSESGeneral and Administrative


36,935


38,475Research and Development


44,261


30,656Total Operating Expenses


81,196


69,131Operating Loss


(81,196
)

(69,131
)OTHER INCOME (EXPENSE)Minority Interest


18,329


-Interest Income (Expense)


(10,547
)

6Total Other Income (Expense)


7,782


6NET INCOME (LOSS)

$
(73,414
)
$
(69,125
)NET INCOME (LOSS) PER SHARE

$
(0.02
)
$
(0.02
)WEIGHTED AVERAGE COMMON SHARES


3,703,321


3,647,208




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SOLAR ENERGY LIMITED


(a Development Stage Company)


CONSOLIDATED STATEMENTS OF CASH FLOW




Three Months EndingMarch 31,2003


2002(Unaudited)CASH FLOWS FROM OPERATING ACTIVITIESNet Income (Loss)

$
(73,414
)
$
(69,124
)Adjustments to Reconcile Net Loss to Net CashProvided by Operations:Depreciation and Amortization


6,990


6,969Minority Interest


(18,329
)

-Change in Assets and LiabilitiesIncrease (Decrease) in:Accounts Payable


(109
)

(4,376
)Accrued Expenses


19,881


6,609(Increase) Decrease in:Accounts Receivable


-


11,994Prepaid Expenses


-


(390
)Net Cash Provided (Used) by Operating Activities


(64,981
)

(48,318
)Cash Flows From Investing ActivitiesPurchase of Property and Equipment





732Cash Paid for Patent Costs


-


(1,927
)Net Cash Provided (Used) by Investing Activities


-


(1,195
)Cash Flows from Financing ActivitiesProceeds from Debt Financing


81,020


45,243Net Cash Provided (Used) by Financing Activities


81,020


45,243Net Increase (Decrease) in Cash and Cash Equivalents


16,039


(4,270
)Cash and Cash Equivalents - Beginning


30,516


23,741Cash and Cash Equivalents - Ending

$
46,555

$
19,471Cash Paid For:Interest

$
-

$
-Income Taxes

$
-

$
-




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**SOLAR ENERGY LIMITED**


NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS


March 31, 2003








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 three months ended March 31, 2003 are not necessarily indicative of the results that may be expected for the year ending December 31, 2003.








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.





1. 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, 2002 that was filed in the first quarter of 2003. In that Form 10-KSB we explained that we have been primarily focused on three projects, two of which had previously been transferred to Sun Power Corporation, an unrelated entity, in exchange for future consideration. However, as of December 31, 2002, these transactions were reversed due to lack of funding. All assets and technologies transferred were returned to Solar Energy as to that date due to lack of funding by Sun Power. From that date forward, the company has focused all of its efforts on furthering the Solarec project only, leaving other potential projects on hold.







(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, 2002 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.





1. 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 three months ending March 31, 2003 were more than the same period in the prior year because we have, through shareholder loans, provided funds to further the development of the Solarec project. In the prior year this project was funded through Sun Power Corporation. At the current time, all funds being raised for the Solar Energy group are being directed to the development of Solarec, and other projects are on hold.



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**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 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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CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906


OF THE SARBANES-OXLEY ACT OF 2002


CERTIFICATION OF CHIEF OPERATING OFFICER


In connection with the Quarterly Report of Solar Energy Limited, a Delaware corporation (the "Company"), on Form 10-QSB for the period ending March  31, 2003 as filed with the Securities and Exchange Commission (the "Report"), I, David F. Jones, Chief Operating Officer of the Company, certify, pursuant to 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350), that to my knowledge:


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


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


/s/ David F. Jones  David F. Jones


Chief Operating Officer


May 28, 2003






Page - 8







**Officer Certification**

**Pursuant to Section 302**






Page - 9






CERTIFICATIONS Pursuant to Section 302





I, David F. Jones , certify that:




1. I have reviewed this quarterly report on Form 10-QSB of Solar Energy Limited;




2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;




3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;




4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the registrant and have:




a) designed such disclosure controls and procedures to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;




b) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this quarterly report (the "Evaluation Date"); and




c) presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;




5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):




a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and




b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and




6. The registrant's other certifying officers and I have indicated in this quarterly report whether there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.




Date: May 28, 2003


/s/David F. Jones  David F. Jones


President / Director




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