Assessing the extent of evidence available relating to the impact of solar energy for households (HHs) in developing countries, surveys are reviewed focusing on the impact of pico‐photovoltaic (e.g., solar lanterns) or solar home systems (SHS) on rural HHs and directly related economic activities of their occupiers. Ninety‐eight documents have been analyzed. Areas of enquiry have included the impact of small individual solar photovoltaic systems on different facets of the life of HHs' occupiers: their education, health, finance, livelihoods, and social relations.

This study presents three cost-optimal calculations. The overall aim is to provide a deeper analysis and to provide additional guidance on how to properly implement the cost-optimality methodology in Member States. Without proper guidance and lessons from exemplary case studies using realistic input data (reflecting the likely future development), there is a risk that the cost-optimal methodology may be implemented at suboptimal levels.