This article assesses the commercial applicability of solar hydrogen systems (SHS) to the hydrogen small user market, which currently pays the highest prices for their hydrogen supplies. Year 2000 small user hydrogen demand was projected to be on the order of 110–190 billion standard cubic feet (scf), or between 0.03–0.06 quadrillion Btu (quads). Of this number, the allied chemical industries will account for 71–142 billion scf of hydrogen. Potential SHS domestic market penetration is further restricted to regions with sufficiently high insolation, and the report concludes by discussing economic trends both favorable and unfavorable to SHS market penetration.