Uganda's electricity sector for long has been depending on hydro as a base power source. Diesel is currently the second source of electricity which supplements the hydro power. The use of diesel has some implications; first, the price of fuel is high and therefore the energy produced is also expensive. Secondly, diesel power would not be a better option because of its immediate and long term effect on environment due to carbon emission and other pollutants that are often injected into atmosphere from diesel. This paper therefore examines the possibility of using solar PV systems as alternative to diesel as a source of electricity. The paper has also established that the tendency of depending on non-renewable sources of electricity can be minimized and at the same time reducing the cost of energy in the future. (C) 2011 Elsevier Ltd. All rights reserved.