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Equality between economic progress and environmental sustainability is essential for a developing country like India. In the present time, the economy of India is growing rapidly in a vibrant mode and an efficient way, which in turn demands huge uninterrupted energy supplies. The country's energy needs are met mostly by the usage of fossil fuels and nearly 70% of electricity is generated from coal based power plants. In India, nearly 840 million people depend on traditional biomass to satisfy their energy necessities. Approximately 74 million rural people do not have access to modern lighting systems and around 81 million households do not have access to electricity, which is a major challenge to India's energy security. In order to achieve stable sustainable energy in the long-run, significant progress in renewable energy sectors is needed. Favorably, due to India's geographic location, the country is blessed with abundant renewable energy resources, which has not yet been exploited completely. So the central and state governments of the country have framed various policies and are providing subsidies to encourage the utilization of solar photovoltaic systems. In this paper, a comprehensive review of the potential, current developmental status and prospects of solar energy of India is briefed. The various applications of solar energy such as water heaters, desalination units, pasteurizers, food drying units, water purifier, space heating systems, air-conditioning units, cookers, water pumps, aerators, solar-wind hybrid systems and grid connected photovoltaic systems are explained. The study also mentions the current renewable energy policies, the barriers blocking the progress of the solar manufacturing units and some possible future recommendations that might speed up renewable energy developments in India. [ABSTRACT FROM AUTHOR]

A decade before conversion of solar energy into electricity was quite expensive compare with other renewable energy or conventional fossil fired generated power. For making solar energy as a main stream source of power generation Indian government has taken several initiatives in last 5–6 years. Presently, the deployment of the solar power project in India is governed by both central and state government under the various schemes. These schemes are mainly includes, Feed-in-Tariff (FiT), Renewable Purchase Obligation (RPO), long term Power Purchase Agreements (PPAs), Renewable Energy Certificates (REC), Accelerated Depreciation (AD) benefit and reverse bidding/auctions etc. As an effect of this competitive market environment, the tariff of solar power has come down from INR 17 or US $ 0.27 1 1 In year 2010, US $ 1=INR 45. (year 2010) to less than INR 6 or US $ 0.092 2 2 In year 2015, US $ 1=INR 65. (year 2015). This decremented solar tariff may achieve grid parity soon but also has raised the question of sustainability of the solar power project as well. Additionally, this multi-policy environment of both central and state government has created lots of confusion among the solar power project developers to select scheme and make their investment viable as per other power generation business. This paper summarizes various schemes under the current policy framework in terms of viability of the solar power projects in India. It also includes issues related with the sustainability of the solar power project taken under the competitive bidding process with remarkable lowered tariff than benchmarked tariff (ceiling price)in India (i.e. INR 7 or US $ 0.107). This study will help project developers and other stakeholders to understand the issues related with viability of the project in current multi-policy environment for better planning before investing in the field of solar Power business. [ABSTRACT FROM AUTHOR]