Jordan has scarce petroleum resources and hence depends to a large extent on imported crude oil, and natural gas to cover its energy needs and to generate electricity in order to cope with the growing demand. The escalating fuel prices associated with the global economic crisis have negative impacts on the economy of Jordan. However, the availability of renewable energy resources (mainly solar, and wind) supported by well-designed and ambitious incentive schemes that runs in parallel with an energy efficiency program, can contribute positively in solving the current problems. This may result in a dramatic reduction in energy bill cost for both short and long terms. Moreover, it shall result in a better and cleaner environment. In this paper an incentive policy is proposed by the Electricity Regulatory Commission (ERC) based on supporting the installation of PV generating units. ERC plays a major role in this effort which aids decision makers to adopt the proper policies in the electricity sector. It is anticipated that the implementation of this proposed policy will result in a win-win situation for both consumers and government, and will lead to increasing the energy security level in general, and electricity security in particular, within Jordan. (C) 2012 Elsevier Ltd. All rights reserved.