AbstractHere, we present the results of evaluation of solar energy potential and photovoltaic (PV) module performance from actual data measured over a period of more than 2 years in the Gobi Desert of Mongolia. To allow estimation of solar energy potentials and durability of PV systems in the Gobi Desert area, a data acquisition system, including crystalline silicon (c‐Si), polycrystalline silicon (p‐Si) modules, and two sets of precision pyranometers, thermometers, and anemometer, was installed at Sainshand City in October 2002. This system measures 23 parameters, including solar irradiation and meteorological parameters, every 10 min. High output gain was observed due to operation at extremely low ambient temperatures and the module performance ratios (PRs) were high (>1·0) in winter. In summary, the present study showed that a PV module with a high temperature coefficient, such as crystalline silicon, is advantageous for use in the Gobi Desert area. Copyright © 2006 John Wiley & Sons, Ltd.