Solar Begins Engineering Solid-State Fusion Thermal Energy Modules.

VANCOUVER, British Columbia -- Solar Energy Limited (OTCBB: SLRE) ("Solar") today announced that its wholly owned subsidiary, D2Fusion Inc. ("D2Fusion"), has commenced engineering and development activities at its laboratories in Los Alamos, New Mexico and Foster City, California.

Operations are focused on the engineering and development of practical solid-state fusion thermal energy modules. The teams are lead by Dr. Thomas Claytor, at the Los Alamos facility, (also of Los Alamos National Laboratory) and Dr. Thomas Passell, at the Foster City facility, (formerly of the Nuclear Power Division of the Electric Power Research Institute of Palo Alto). Both locations are engaged in the design and testing of fusion energy devices derived from work sometimes referred to as LENR (Low Energy Nuclear Reactions) or CANR (Chemically Assisted Nuclear Reactions). These reactions utilize deuterium, a common isotope of hydrogen, which when loaded into solid-state materials produces heat and helium without significant energetic radiation such as neutrons, gammas, and x-rays. Certain reactions produced by members of the Los Alamos team have also shown the production of minute amounts of tritium.

D2Fusion is in the business of developing and delivering low-cost, clean, waste-free, practical nuclear energy applications for use in a wide range of environments from homes to industry. D2Fusion is headed by President and CEO Mr. Russ George and is headquartered in Foster City, California. On October 21, 2005, Mr. George presented details of D2Fusion's science and work at an invited lecture at the Cavendish Laboratory at Cambridge University in the UK at the invitation of Dr. Brian Josephson, Nobel Laureate for his pioneering work in solid-state and condensed matter physics.

The science and news surrounding solid-state fusion and D2Fusion can be viewed on the company's website at www.d2fusion.com.

Solar is a public company; its common shares trade on the OTCBB under the ticker symbol "SLRE".

A number of statements contained in this press release may be considered to be forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. These forward-looking statements involve a number of risks and uncertainties, including timely development, and market acceptance of products and technologies, competitive market conditions, successful integration of acquisitions and the ability to secure additional sources of financing. The actual results Solar may achieve could differ materially from any forward-looking statements due to such risks and uncertainties. Solar encourages the public to read the information provided here in conjunction with its most recent filings on Form 10KSB and Form 10QSB. Solar's public filings may be viewed at www.sec.gov.