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Abstract: This paper studies the feasibility of utilizing photovoltaic systems in a standard residential apartment in Amman city in Jordan. Data on solar radiation, sunshine duration and the ambient temperature has been recorded in Amman city. An apartment in Amman was chosen as a case study to conduct energy and economic calculations. The electrical power needs and cost were calculated for the apartment. The component design and cost of PV system required to supply required energy was calculated and the payback period for the suggested stand-alone PV system in this paper was estimated in a constant inflation rate in electricity price similar to that of interest rate. The calculated payback period was high in a stand-alone system, to decrease payback period a grid-connected PV system is suggested. Considering an annual increase of 3% in electricity price, 15% of payback period was decreased in a stand-alone PV system and 21% in a grid-connected PV system. The output results of this study show that installation of PV system in a residential flat in Jordan may not be economically rewarding owing to the high cost of PV system compared to the cost of grid electricity. A feed-in tariff law of solar electricity may help to reduce PV system cost like the case of Germany. Additional conclusions are PV systems may be economically rewarding in Jordan if applied in locations far from electrical grid or in remote large scale PV power installations to overcome economical limitations of PV technology. [Copyright &y& Elsevier]