This research investigates how rural electrification could be achieved in India using different energy sources and what effects this could have for climate change mitigation. It uses the Regional Energy Model (REM) to develop scenarios for rural electrification for the period 2005–2030 and to assess the effects on greenhouse gas emissions, primary energy use and costs. It compares the business-as-usual scenario (BAU) with different electrification scenarios based on electricity from renewable energy, diesel and the grid. The results indicate that diesel systems tend to have the highest emissions, followed by grid systems. Rural electrification with renewable energy-based enduses could save up to 99 per cent of total carbon dioxide emissions and 35 per cent of primary energy use in 2030 compared to BAU. The research elaborates whether renewable energy is a viable option for rural electrification and climate change mitigation in rural India and concludes with policy recommendations.