While Gujarat has an installed capacity of about 604 MW as on 31st March 2012, most of this capacity has come up under the state Feed in Tariff (FIT) route and the developers have signed the PPAs with the state utility. Gujarat, Rajasthan, Jharkhand and Uttarpradesh are the states who have taken highest targets of RPO of the order of 0.5% of solar electricity during 2011-2012. Other states have taken targets generally of the order of 0.25%. Considering the total electricity demand of Gujarat as 75576 MU, the present installed capacity leads to a surplus capacity of about 0.22% additional RPOs than what Gujarat has currently targeted. Although the distribution licensees can carry forward the surplus RPOs and use it in their fulfilment of their next targets. There is almost 4000 MW additional capacity which investors want to install in Gujarat, however the state government has to decide on as what to do with the situation in which they are surplus to their existing RPO targets. Currently there is no provision through which the surplus targets of one state can be transferred to another state. There is an urgent need by the government to come up with a regulation when a RPO surplus state can sell their RPOs to a RPO deficit state.