The use of solar home systems is widely recommended as a more viable alternative to grid extension in rural areas of developing countries. However, despite a large body of literature on the impacts of grid electrification, very few studies have compared the relative socio-economic impacts of these two technical approaches. This paper reports on such a study conducted in Namibia where the government has promoted both options in its rural electrification programme. It was found that the principal benefit of both forms of electrification lay in access to high-quality lighting as well as the use of television. Despite the supply limitations of the relatively small solar systems in place, it is concluded that, under the circumstances found in Namibia, both technologies provide a similar level of benefit. Given that grid plectrification costs are considerably greater than the costs of providing solar home systems, there is merit in encouraging approaches that treat the subsidisation of these two technologies more evenly.