India is densely populated and has high solar insolation, an ideal combination for using solar power in India. India is already a leader in wind power generation. In the solar energy sector, some large projects have been proposed, and a 35,000 km2 area of the Thar Desert has been set aside for solar power projects, sufficient to generate 700 GW to 2,100 GW. Also India's Ministry of New and Renewable Energy has released the JNNSM Phase 2 Draft Policy, by which the Government aims to install 10GW of Solar Power and of this 10 GW target, 4 GW would fall under the central scheme and the remaining 6 GW under various State specific schemes.
In July 2009, India unveiled a US$19 billion plan to produce 20 GW of solar power by 2020. Under the plan, the use of solar-powered equipment and applications would be made compulsory in all government buildings, as well as hospitals and hotels. On 18 November 2009, it was reported that India was ready to launch its National Solar Mission under the National Action Plan on Climate Change, with plans to generate 1,000 MW of power by 2013. From August 2011 to July 2012, India went from 2.5 MW of grid connected photovoltaics to over 1,000 MW.
According to a 2011 report by BRIDGE TO INDIA and GTM Research, India is facing a perfect storm of factors that will drive solar photovoltaic (PV) adoption at a "furious pace over the next five years and beyond". The falling prices of PV panels, mostly from China but also from the U.S., has coincided with the growing cost of grid power in India. Government support and ample solar resources have also helped to increase solar adoption, but perhaps the biggest factor has been need. India, "as a growing economy with a surging middle class, is now facing a severe electricity deficit that often runs between 10 and 13 percent of daily need".
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