The growing industrialization and associated use of energy have led the world to face energy crisis which is gaining serious concern day by day. The development of a new energy basis for continued economic growth has therefore become an urgent necessity. With the help of solar power technology, we can tap sun energy in many ways. Solar cells, otherwise known as photovoltaic or photoelectric cells are the most popular devices that help to convert sunlight into electricity. In combination with modules, they are used to manufacture solar panels. Solar energy is also used in the functioning of solar water heaters, melting steel, creating hydrogen fuel and making electricity through solar furnaces. The reflective surfaces used in these solar furnaces helps in concentrating all of sun energy into a strategic point which in turn generates a large amount of heat and there by electricity. The majority of photovoltaic modules are used for grid connected power generation. For more than three decades, solar power generated electricity has been dismissed as too costly. But the cost of solar generated electricity is consistently coming down, while the cost of conventional electricity is increasing. Advances in solar cell technology, conversion efficiency and system installation have allowed photovoltaic system (PV) to achieve cost structures that are competitive with other peaking power sources. PV has the unique advantage among renewable resources of being able to produce power anywhere: deserts, cities or suburbs. Though the installation cost of PV is more, but it can be selectively deployed on the grid wherever and whenever needed to reduce distribution capacity constraints and transmission congestion while producing pollution-free power. Both capital costs and operating and maintenance costs are driven by the choice of technology and the area of the solar system. The time is right for the world to adopt the clean and renewable energy source as the major electricity producer. With most part of India enjoying close to 300 sunny days a year, even if 0.5% of land area is brought under solar power, it can meet the entire energy requirement of India in 2030. The Indian government has announced its Solar Mission under the National Action Plan on Climate Change in November 2009 with the goal to generate 1,000 MW of solar power by 2013 and 20,000 MW by 2020. World solar photovoltaic (PV) market installations reached a record high of 7.3 GW in 2009, representing growth of 20% over the previous year, according to the annual PV market report issued by Solarbuzz. The PV industry generated $38.5 billion in global revenues in 2009, while successfully rising over US$13.5 billion in equity and debt, up 8% on the prior year. Indian Government has taken several steps, both on the supply side and the demand side, to offer key incentives to aid the development of solar PV industry. Currently India has 10-12 solar PV cells manufacturers producing about 100 MW of solar PV cells and about 20 manufacturers engaged in module manufacturing with installed capacity of 120 MW. Moreover, currently India has more than 200 manufacturers of solar water heaters and 40 solar cooker manufacturers, and also 5-6 manufacturers are involved in producing solar drying, cooking, process heat, and air conditioning applications. India already is witnessing a huge surge in applications for solar power, varying from street lighting to water heating. Decentralized Distributed Generation (DDG) for meeting rural demand, back-up power for telecommunications, roof based captive systems for individual industries and grid interactive solar power plants are some prominent sectors offering significant market potential for solar PV in India. There is a bright future and good scope for new entrepreneurs in this sector in the coming years.

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