In the programme of total electrification. centralized Supply Of power generated by conventional methods using exhaustible resources is proving to be uneconomic and, more importantly, unmanageable so far as supple to rural areas, particularly remote places. Lire concerned. Oil the Other hand, the decentralized approach based on supply of power produced with renewable energy resources available locally is, for various reasons, gradually being recognized as a viable alternative for such remote places. The present paper attempts to examine, from a broad-based socio-economic and environmental point of view, the feasibility of decentralized solar photovoltaic (SPV) system as a source of power compared to that from conventional Sources in a remotely located island. The study, based on Li sample survey. conducted in Lin island called 'Sagar Dweep' in West Bengal. India. shoves that within a short spell of time of four bears, there hake been noticeable improvements and significant impact on education. trade and commerce. entertainment. health ete as a result of supply of power from SPV power plants. Productivity level of some agricultural activities as well as women's participation in different economic activities (at night) other than household work have shown definite signs of betterment. The SPV system is also Superior to other conventional systems on consideration of its environmental effects, Thus, on the whole there seems to be a strong case for the locally installed SPV system in spite of its current unfavourable position in respect of the direct cost of production.