Lack of access to modern lighting services hinders development and helps ensure the poverty trap is inescapable. Among the poorest of the poor, lighting is often the most expensive item among their energy uses.
If you look at the world light map below, it becomes clear what a distinct North / South bias there is in the amount of light enjoyed by the economically developed northern hemisphere when compared to the developing south.

The composite satellite photo highlights the fact that two billion people are without electricity and another two billion have inadequate or unreliable power. This means that two thirds of the Earth's population does not have the energy advantages that the fortunate one-third currently enjoys, nor the same quality of life that such advantages offer.
Just by looking at this composite satellite photo, it becomes obvious that one of the best uses of a village level electrification project is to provide lighting for poor, rural communities so that they too can enjoy the benefits of artificial light to illuminate their evenings.
Fuel based lighting consumes a huge amount of house hold income.
Fuel-based lighting can account for up to 50% of all energy expenses and up to 30% of total household income. Fuel based lighting consumes a large share of scarce income but provides little in return. The low quality of the lighting provided by fuel-based devices poorly supports productive or income-generating activity. It also reduces educational performance, as children lack the opportunity to study without eye strain in the evenings. Further, indoor pollution from fuel burning leads to health problems.
Access to modern lighting products can break this cycle. Modern lighting technologies have lower ownership costs than fuel-based lighting, do not generate indoor pollution, and can support small scale income generating activities, fostering an improving cycle of development and poverty reduction.
Displacing Fuel based lighting

Kerosene lamps currently used all over the developing world are very expensive to fuel and smoky to use, endangering children and adult health alike. Some communities use localized lamps like the Nepal Ghee lamps which burn clarified butter, but this is an important food source for the people and forces them to make a terrible choice.

Photo care of United Nations Development Programme - Afghanistan
Displacing fuel based lighting systems with the rechargeable LED lanterns means that each household can have access to lighting.
If the household has a fuel based lighting system, the rechargeable LED lanterns will be much safer and clean burning. The household will also save money using the rechargeable LED's by not spending so much of their disposable income on other, fuel-based lighting systems.
LED's provide more light
LED Lights provide superior lighting than kerosene or other fuel based lighting.
A great example is the single solar powered LED lantern shown in the photo providing better lighting than 3 kerosene powered lanterns.
Rural Lighting can help improve education levels

Photo care of United Nations Development Programme - Afghanistan
Village scale lighting schemes are essential to aid education efforts. Kids can go to school all day, but cannot do home work if they do not have light to work with in the evenings.
Most school children in subsistence agriculture communities have work to do during the day light hours, fetching water, finding firewood, looking after animals or their younger siblings. Hence the opportunity to read is usually only during periods of darkness and the availability of light therefore plays a critical role in the education process.
A great example of the effect of lighting comes from The Light the World Foundation that has provided over 100 homes in a village in Afghanistan with WLED (White Light Emitting Diode) lamps. This initiative has proved that light that has transformed the fortunes of the villagers of Karez Kalan in the Mazar-e-Sharif region.