The growing industrialization and associated use of energy have led the world to face energy crisis which is gaining serious concern day by day. In principle, solar energy can supply all the present and future energy needs of the world on a continuous basis. This makes it one of the most promising of the non-conventional energy sources. India has made marked gains in the construction of both hydro-electric and thermal power generating plants. Installed generating capacity has increased manifold since demand has increased at an even faster rate. Thus the burden of power generation is still on fossil fuels. Solar energy can play an important role in meeting energy demands in future years. Thus greater stress should be given on technical development for collection and storage of solar energy. If this solar energy is converted to electricity this can meet the growing demands. Thus Indian Industries will get a great benefit. Solar systems are powered by energy from the sun. Two generic types of solar-electric systems are solar photovoltaics and solar thermal electric. The direct utilization based on thermal and photovoltaic are of prime importance because it involves both storage and conversion into chemical as well as electrical form of energy. Solar thermal technologies convert radiant energy from the sun of thermal energy. For low-temperature applications (typically below about 200ºF [95ºC]) such as domestic water heating, concentration of the sunlight is not required. To achieve the high temperatures required for generation of electrical power, the solar energy must be concentrated. All solar thermal electric technologies include a collector, which redirects and concentrates the insolation on a receiver. In the receiver, the solar energy is absorbed, heating a fluid that powers a heat engine to generate electricity. In some systems, a heat exchanger may be used for power generation. Three principal solar thermal concentrator concepts are currently under development for power generation: parabolic trough, central receiver, and parabolic dish. The parabolic trough is the most advanced of the concentrator systems. This technology is used in the largest grid connected solar-thermal power plants in the world. A parabolic trough collector has a linear parabolic-shaped reflector that focuses the sun's radiation on a linear receiver located at the focus of the parabola. The collector tracks the sun along one axis from east to west during the day to ensure that the sun is continuously focused on the receiver. Because of its parabolic shape, a trough can focus the sun at 30 to 100 times its normal intensity (concentration ratio) on a receiver pipe located along the focal line of the trough, achieving operating temperatures over 400 degrees Celcius. A collector field consists of a large field of single-axis tracking parabolic trough collectors. The solar field is modular in nature and is composed of many parallel rows of solar collectors aligned on a north-south horizontal axis. A working (heat transfer) fluid is heated as it circulates through the receivers and returns to a series of heat exchangers at a central location where the fluid is used to generate high-pressure superheated steam. The steam is then fed to a conventional steam turbine/generator to produce electricity. After the working fluid passes through the heat exchangers, the cooled fluid is recirculated through the solar field. The plant is usually designed to operate at full rated power using solar energy alone, given sufficient solar energy. Flat Plate Collectors are the most common type of solar water heating systems for residential and commercial applications. Flat plate collector systems are used comfort heating of a home or commercial building in the winter and for domestic hot water production throughout the year. Flat plate collectors usually heat water to temperatures ranging from 150º to 200º F (66º to 93º C). The efficiency of flat plate collectors varies from manufacturer to manufacturer, and system to system, but usually ranges from as low as 20% to as high as 80%. Solar thermal power is one of the most promising ways to provide renewable energy, giving the fact that it can compete in the middle/long term with conventional power plants. As a result of international cooperation and government grants, many demonstration projects have been carried out or are still in progress. India supports development of both solar thermal and solar photovoltaics (PV) power generation. To demonstrate and commercialize solar thermal technology in India, MNES is promoting megawatt scale projects such as the proposed 35MW solar thermal plant in Rajasthan and is encouraging private sector projects by providing financial assistance from the Ministry. Involvement in the project of various players in the energy sector, such as local industries, the private construction and operations contractors, Rajasthan State Power Corporation Limited (RSPCL), Rajasthan State Electricity Board (RSEB), Rajasthan Energy Development Agency (REDA), Central Electricity Authority (CEA), MNES and others, will help to increase the capacity and capability of local 5technical expertise and further sustain the development of solar power in India in the longer term.