Study Was Conducted In A Remote Village Of Bajaur Agency Where No Electricity Was Available And About Two Years Back A Non-government Organization Provided Solar System To Each Household. The Research Aimed To Investigate The Socioeconomic And Environmental Changes Occurred After The Installation Of The Solar Home System. This Could Affect The Different Capitals Of Livelihood. Using A Recall Method, Household Survey Was Conducted For Collected Primary Data Through Questionnaire And Focus Group Discussion. The Data Was Analyzed Through Simple Bivariate Regression Model As Well As Through Descriptive Statistics. The Results Revealed That The Solar System Has Provided Direct And Indirect Benefit To The Surveyed Households. The Study Hours Of The Students Were Getting Improved. The Consumption Of Kerosene Oil And Lpg Which Used For Lighting Have Completely Overcome, Resulted In Less Indoor Pollution And More Saving Due To Cut Off Of The Expenditure On These Resources. The Impact On Business Activities Was Negligible, However It Added A Little Bit To The Income Because Of The Extended Working Hours At Evening. Information And Communication Appliances Along With Other Electrical Equipment Were Found Which Were Not Available Before The Installation. There Was Significant Improvement In Social Activities Which Were Earlier Limited To Day Time. It Can Be Concluded That The Solar System Has Improved The Livelihood Capitals Of The Rural Households And It Is A Viable System And Should Be Extended To Such Other Remote Communities. Supervisor:-DR Usman Mustafa