The energy challenge we face in the new century is extraordinary in its urgency, stakes, scope and opportunity. Energy has long been at the intersection of the economy, environment and national security and its availability and price have always been important factors in economic performance. Since energy has been produced over the past two centuries mainly by burning fossil fuels, dirty by products soon threatened our air and water and this has spawned the modern environmental movement. The urgency of this issue demands a leadership that is willing to accept the low-carbon energy challenge and sustain Indian economic growth in the 21st century. In this context, Renewable Energy Sources (RES) are an important element of India’s power policy aimed to meet the power needs of remote areas in an environmentally friendly way.
Certain forms of renewable energy sources (such as wind energy, hydro and biomass) have taken off, but solar power is still in infancy. Given the high solar incidence in India and the need to electrify vast remote off-grid areas, India is set to become a huge market for solar energy. However, it is observed that till date only~ 30 MW capacity Solar Photo Voltaic Power has been installed against the 50,000 MW(20 MW/sq.km) capacity. The reasons for this low exploitation are many, attributing into high capital cost and policy/regulatory framework. Therefore, the author has made an attempt in the present paper to investigate the key issues in solar sector and come out with a turnaround strategy for making this domain ‘lucrative’ with CDM incentive.