The potential and utilization of renewable energy technologies (RETs), and energy analysis in Lesotho with emphasis on the contribution of solar energy technologies (SETs) is presented. The heavy reliance of the country on imported fossil fuel coupled with the growing demand for electricity and declining wood fuel supplies call for alternative sources of energy. Taking the average global solar radiation that ranges from 15 to 20MJ/m2 and cognizant of the short falls of other renewable energy sources in Lesotho, this paper focuses on the application of solar energy and associated developmental issues. The paper provides a statistical analysis of the energy demand and identifies areas of further growth for SETs. Various application areas of solar energy and their contribution to development in Lesotho together with future prospects for use of solar energy are also discussed. An analysis of the relative merits of using photovoltaic (PV) devices over other renewable energy sources in Lesotho is presented. It is argued that with proper economic support and utilization of efficient RETs, developing countries like Lesotho can meet their basic energy demands and alleviate the problems of energy shortages.