A great deal of attention has been paid to the needs of the rural poor in their pursuit of economic, social and political development. In this light the merits of rural electrification are often debated with mixed conclusions and conjectures. The positive role renewable energy plays in the drama of human development is enjoying greater receptivity by both policy makers and villagers. However, institutional barriers still inhibit increased adoption of renewable energy technologies. This article argues that the question of how renewable energy services can be delivered to and paid for by the rural and peri-urban populations is answered not so much by the technology selected as by the institutional and organizational structures erected. By addressing financial infrastructure, capacity building, and village empowerment sustainable rural electrification programs are possible.