Strong and stable policies are needed if the benefits of a sustainably powered community are to materialize. Many of these policies are targeted at removing the barriers that prevent investment in renewable energy and energy savings. 

The barriers faced by local governments include:

1. Conventional energy sources continue to get favorable financing from national governments.

Large subsidies for nuclear and fossil fuel energy create a disadvantage for sustainable sources by creating a non-level playing field. Reducing subsidies would improve market competitiveness for new renewable energy and energy efficiency technologies while yielding the added benefits of improving market efficiency and of considerably decreasing the burden on public spending.

2. High up-front capital costs.

Sustainable energy investments usually require higher amounts of financing for a given amount of capacity. Policies that reduce these costs, such as loans, rebates, grants and tax incentives, are a step forward in removing this significant barrier.

3. Lack of access to credit.

Local governments and citizens may not be able to access credit to purchase or invest in renewable energy.

4. Lack of skills, experience and information.

Many local governments lack experience with renewable energy and decentralized energy system planning. As such, many resist change in this positive direction because of this lack of understanding. Access to information, training, and exchanges can be highly beneficial in overcoming this barrier, as can the encouragement of building a skilled workforce that can plan and implement policies, and that can install, operate and maintain these sustainable energy systems.

5. Misperception of technology performance as risky or unreliable

Proven, cost-effective technologies may be wrongly perceived as risky by local government decision makers as well as by the public if there is little experience with them in a new application or region.

6. Many legal obstacles.

There are many outdated laws: building codes, zoning laws, standards, permitting processes, etc. that can prevent, discourage or add expense to a renewable energy project. Luckily, many municipalities have it in their power to remove such barriers.

7. Have not yet transitioned to a smart energy system.

Grid forecasting, smart grid features, and energy storage are not yet widespread, discouraging local governments from aiming for higher renewable energy targets and ambitious policies while they wait for the grid to be ready.

8. Unstable policy environment.

An unstable policy environment undermines good policy. Investors and citizens are then unsure of how to proceed. Long term planning is key to minimizing investment risk. 

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