Electricity is a distant dream for many families in developing countries. Photovoltaic (PV) technology is emerging as an effective tool to fulfill the demand of people in developing countries, especially in rural and isolated areas. However, there are some technical and non-technical barriers, such as institutional, social and cultural issues, which hinder the widespread use of PV systems in rural areas. Solar Home System (SHS) uses a PV module to provide power for lights and small appliances with dissemination potential for sustainable rural livelihood in developing countries. Installing SHS units in rural villages is the most important step, but to ensure lasting success, the program needs to secure upfront approval from the majority of the villagers, including village leaders. An implementation model similar to Infrastructure Development Company Ltd. (IDCOL) in Bangladesh is a good example for other developing countries. The future dissemination potential of SHSs depends on technological advancement and price reduction in installation.