This paper assesses the technical and economic performance of PV technology integrated into residential buildings in the Gulf Cooperation Council (GCC) countries. It highlights the value of PV electricity for the GCC society from the perspective of consumers, utilities and environment. Through a systematic modelling analysis it is shown that the efficiency of PV system drops by 4-6% due to high range of module temperature and also a change in power output due to high ambient temperatures. Consequently, the outputs of horizontal and vertical PV modules are found to be less than estimates based on standard test conditions. Economically, this study shows that building integrated photovoltaic (BIPV) systems are not viable in GCC countries and cannot compete with conventional electricity sources on a unit cost basis. From a society point of view, however, the integration of PV technology into buildings would have several benefits for the GCC countries, including: first, savings in capital cost due to central power plants and transmission and distribution processes; second, an increase in the exported oil and natural gas used for electricity generation; and third, a reduction in the CO2 emissions from conventional power plants. When these considerations are taken into account then BIPV should become a feasible technology in GCC countries. (C) 2012 Elsevier Ltd. All rights reserved.