The role of renewable energy in sustainable development has been gaining significant importance in recent years. In India, the contribution of renewable energy towards sustainable development can be found at three levels: At the regional level, renewable energy delivers clean energy to rural populations in promoting their livelihoods; at the national level, it diversifies country’s energy mix to strengthen energy security; and at the international level, it helps the country to keep its commitment on climate change mitigation. Despite the initiatives undertaken to promote renewable energy for the past three decades, the deployment level and the benefits accrued as a result to the rural population is limited. Therefore, it is necessary to address the barriers for renewable energy to understand the role renewable energy can play in promoting sustainable development in rural India This study analyzes the barriers for renewable energy use in rural India by examining the viability of a socio-technical approach that includes different aspects associated with the development, deployment and adoption of renewable energy. The barriers are analyzed under following categories: Policy, technology, finance, institutions, capacity building and awareness. Finally, relevant measures are suggested to overcome these barriers. The conclusions in this study show that India needs a comprehensive legislative and policy framework to provide a stable environment for renewable energy in rural development. Further, towards technology development, deployment and dissemination, a bottom-up approach is needed to involve the participation of more rural bodies and other key stakeholders such as government agencies, research organizations, financial institutions and non-governmental organizations (NGOs). Innovative finance mechanisms such as microfinance, community finance, international clean energy and climate change investments, and performance-based subsidies need to be expanded and delivered efficiently to overcome the cost barriers. There is also a need to centralize information through online portals and increase funding for capacity development initiatives to accelerate knowledge dissemination and skills transfer to various stakeholders engaged in renewable energy development in rural India.