The state of Rajasthan is endowed with the highest radiation levels in India and implemented the Solar Policy to harness great untapped resources and meet its Renewable Portfolio Standard requirements. The state targets the installation of 1 to 1.2 GW of solar capacity by 2022, seeks to enhance energy security, create jobs in the solar manufacturing and become a main exporter of renewable power to third party and neighboring states. To reach such targets, the solar policy includes a combination of support tools: First, power producers are exempted from electricity duty on the energy they consume and can apply for incentives under the Industry Scheme. Producers of solar thermal energy are granted access to the water quantity required for generation by local authorities and solar power will be guaranteed grid access under both the Indian Solar Mission and the Rajasthan Solar policy. The solar policy seeks to widespread the installation of solar water heating systems on all industrial buildings where hot water is required, large residential buildings, government and private hospitals, hotels and swimming pools. Solar steam systems in residential institutions and hospitals will also be supported. Second, the solar policy creates the RE infrastructure Development Fund to finance transmission network extension, road construction and ease the integration of RE generation. Such Fund will be financed by the collection of a development charge of INR. 10 Lacs per MW installed transfered to the Rajasthan Renewable Energy Corporation. The policy also provides for the regulation framework to develop solar parks larger than 1, 000 MW capacity. Such Parks will include Solar Power Plants, Manufacturing Zones, R & D and Training Centres. Third, the Solar Policy creates the Solar Research Center of excellence. The solar policy will fulfill Rajasthan s engagements in the National Solar Mission -install 66 MW of solar capacity- and install additional capacity following a competitive bidding process. Central government will tender 50 MW of solar PV and 50 MW of solar thermal and best bidders will be guaranteed a fixed price by Discoms of Rajasthan. Moreover, the policy will promote the installation of solar PV and solar thermal plans for direct sale to Discoms of Rajasthan with a maximum capacity of 200 MW by 2013 and an additional 400 MW by 2017. Eligible projects will also be selected through auctions. The state will promote off grid and decentralised solar applications and hybrid systems in replacement of diesel based generators. The solar policy also facilitates the installation of solar power producers targeting solar power trade with third party or other states. In fact, Rajasthan aims to become a major issuer of solar Renewable Energy Certificates within the Indian Renewable Portfolio Obligation.