The present paper puts an emphasis on the current energy market scenario and different types of barriers associated with the advancement of solar energy in a developing countries like India. Solar energy, best suited for urban environment, can be housed in a limited space and is characterized as a pollution free, environmentally friendly, as well as noise-free source of electricity. Among the available renewable energies, solar energy is considered to be an integral one, owing to its reduction in cost at an exponential rate day-by-day. The present study deals with the potential of solar energy market in the Indian sub-continent along with several other problems that it needs to overcome in order to be established as an independent system. © 2016, Politechnika Lubelska. All rights reserved.