Renewable energy sources such as solar energy were advocated even before the energy crisis in 1973. Subsequent development in solar energy has been remarkable. Indeed it has been one of the most studied and researched topics in recent years. Much of the technology in the utilization of solar energy has been associated with housing and industrial applications, and, to a smaller extent, with commercial use. The nature of the utilization has been related to the philosophy of independence or autonomy in that each housing or industrial unit is made self-sufficient by the installation of solar energy equipment. The general aim of the development of solar energy has been to substitute existing energy sources by solar energy especially among the developed countries in the temperate regions. In developing countries, the application of solar technology has been more acceptable in rural areas where conventional infrastructure is under- developed. A different direction is necessary for the development of solar energy in urban areas. Buildings are inter-related, and have been dependent on the conventional infrastructure. The consumption of energy is many times more than that in the rural areas. A new approach to urban development must be generated, and studies should be made on the feasibility and viability of using solar energy for urban settlements.