Over 70% of the total population in the country still live in rural areas. Nearly 90% of the total energy consumed by these rural people consists of non-commercial fuels, such as, firewood, cow dung and agricultural waste. The Central & State Governments for development of rural sector have launched several programmes. An essential ingredient of these development programmes and activities has been the supply of energy in the rural areas. While the rural areas provide most of the natural resources for the country's development, the share they get back from these local resources has been minimal. In such a situation, renewable energy sources must be tapped on a large scale to supplement and substitute the commercial energy through evolving a rational plan, which could provide optimal mix of energy from all sources.