This paper considers the economics of using photovoltaic (PV) technology for developing remote areas. "East Owienat" in Upper Egypt is the chosen region: there, the feasibility of using PV systems for the pumping of ground water in comparison with using diesel units, taking into consideration the different parameters affecting the costs,and the present value of both systems, is considered. The study proved that PV-battery systems can be used efficiently for water pumping at East Owienat: the cost of the water unit pumped by PV systems is much less than that pumped using diesel systems, and the water cost is more sensitive to PV cells' prices than their life-time periods.