With the current emphasis on marketization in renewable energy utilization development of indigenous technology at the local and regional levels is being neglected. Solar pond is one such technology, which seems to be both relevant and promising for India. The solar pond is a natural energy collector and also a renewable source of energy. The first recorded use of solar ponds was made about 2500 years ago when Roman baths were heated by sun. Salt gradient pond research started in Israel in 1958,the design given by Tabor and Bloch. Solar pond research in India was initiated at the Central Salt and Marine Research Institute (CSMRI), Bhavnagar in 1971 by constructing a 1210 square meter pond. A 100 square meter pond at the field research unit of TERI, Pondicherry and a 240 square meter solar pond at The Indian Institute of Science (IIS), Bangalore, were constructed and operated around the same time. Gujarat Development Agency (GDA), Gujarat Diary Development Corporation Ltd (GDDC) and Tata Energy Research Institute (TERI) jointly executed a solar pond of area 6000 square meters. Solar ponds are environmentally friendly, since they produce energy with out creating air or water pollution or emitting harmful gases. They can also be used in winter season. However, unless sealed properly a salt gradient pond can produce pollution of land and ground water, which can be particularly harmful in agricultural area. Salt gradient solar pond can actually have a short-term beneficial effect that is utilization of unwanted salt. An essential requirement of the solar pond is its requirement of large areas of land. Hence inexpensive land, salt and water resources are essential for economic viability. However, the use of solar pond is an effective solution for the energy crisis we are facing at present.