The performance of small-scale stand-alone photovoltaic systems is tested under the climatic conditions of Addis Ababa, Ethiopia. With climatic data obtained at a station in the Rift Valley, the photovoltaic system performance is estimated for those climatic conditions. The economics of small-scale stand-alone photovoltaic system applications under Ethiopian conditions are analysed. The potential of photovoltaics for the rural electrification of Ethiopia is discussed.