With the increasing consumption of solar energy in India, the state government of Andhra Pradesh has also decided to avoid the power crisis by utilizing solar power in the state. Andhra Pradesh has released the detailed list of qualified bidders for 500 MW solar projects, 63 bids qualified the selection criteria, totalling up to 1291 MW. To boost the Solar energy sector, the government plans to facilitate installation of about 5,000 MW of solar power generation by 2019. Andhra Pradesh State has announced a new solar power policy. It is intended to encourage PV developers to set up projects in the state for sale through a Renewable Energy Certificate (REC) mechanism. Andhra Pradesh by establishing the REC mechanism aims at attracting investments in solar power plants as well as in the setup of manufacturing facilities. Another target is to promote off-grid solar applications to meet the power needs on a stand-alone basis. The potential of Andhra Pradesh in solar energy and facilitating role of the Government of AP is now being acknowledged. Encouraged by new initiatives and Support Mechanism for Encouraging Solar Plant such as single window clearance, Allotment of Govt. Land, Exemption from Electricity Duty, Open Access for Third Party Sale, etc. , solar power producers have registered with Policy. With the support of the Central Government is keen to transform AP as a solar power generation hub, providing all necessary support through this new solar policy.