The evolution of luminescent materials has witnessed rapid advancement in research and development. Solid inorganic light-emitting materials or phosphors are the optoelectronic material of the 21st century because of their power-efficient potential over various illumination sources, eco-friendliness and resourceful display perspectives. The inorganic phosphors have been extensively explored to meet the demand of low voltage stimulated lighting sources owing to increased global energy consumption. Due to environmental friendliness, advantages long lifetime, lower energy consumption, reliability and high luminous efficiency, modern white light-emitting diodes (WLEDs) have replaced less effective incandescent and mercury-enclosing conventional fluorescent lighting sources. This review highlights the developments in preparation, luminescence and potential perceptions of rare-earth activated phosphors for solid-state lighting technologies. The role of RE ions as an activator as well as a sensitizer in doped materials and possible transitions within their energy levels are reviewed in detail. The paper reviews the substantial influence of host lattices such as aluminate, oxide , phosphate, silicate, sulfide, etc on the optical transitions of doped RE ions. Studies on the advancement into the design of novel phosphors are very crucial as they will provide an opportunity to boom prospects in the course of promising applications. The sustainable energy facilities include clean technologies providing a cheaper lighting source which can produce significant indirect economic benefits via limiting the deforestation and use of scrubbing technology to mitigate air pollution.