As a contribution to the development program of rural areas in Palestine, this paper presents three energy supply alternatives for a remote village represented in PV system, diesel generator and electric grid. Design of these systems and the associated costs of their utilization are illustrated.

A computer-aided dynamic economic evaluation method with five indicators is used to compare the economic-effectiveness of these energy systems. The results show that, utilizing of PV systems for rural electrification in Palestine is economically more feasible than using diesel generators or extension of the high voltage electric grid. The obtained results represents also a helpful reference for energy planers in Palestine and justify the consideration of PV systems more seriously.