This report sets out the main findings of discussions carried out by the Developing Countries Group of the European Photovoltaic Technology Platform with regard to identifying and defining an effective financial mechanism to bolster renewables in microgrids as a part of a least-cost strategy for rural electrification at village-scale in developing countries. The report concludes that, under a "Renewable Energy Regulated Purchase Tariff," optimally-designed microgrids powered by renewable energy can provide energy for small communities at positive net present cost even in the case of high initial investment cost associated with renewable energy technology.