India is on the threshold of becoming the next largest market for Solar installations.

India is among the highest solar irradiation-receiving regions. The Solar Radiation falling over India is about 5000 trillion kWh / year, which is equivalent to 600 GW. There are about 300 clear sunny days in a year in most parts of the country. The average radiation over India is about 5.50 kWh / sq. meter over a horizontal surface. Power generation potential using SPV is about 20 MW/ sq. km.

The National Solar Mission plans to achieve rapid growth by promoting utility-scale solar PV power plants to reduce the cost of solar PV technology. The uptake of utility-scale installations is expected to accelerate, particularly in regions of higher solar irradiance. The falling installation costs, adequate government support and proper financing will drive the global utility-scale solar PV market.

As part of the National Action Plan, it aims at 20 GW of solar power by 2022 from different solar technologies. The main objective is to make solar power cost-competitive in comparison with fossil fuels. The growth in the installed capacity in India is driven by financial incentives provided by the government. These are expected to drive the Indian utility-scale PV market growth from 35 MW in 2010 to a cumulative capacity of 627.2 MW by 2015.