Smart grids are alterations of the traditional power grids where the monitoring and control of the electricity system are faster and easier than before due to their automated self-healing and sensing processes. However, their primary target is two-way communication, which is only feasible if the decentralized generation of power will exist alongside the national grid. In that light, this report first gives a comprehensive description of smart grids and their history. Afterward, it examines the two major groups of challenges to the penetration of the technology; that is technical and regulatory, policy, and economic challenges. Case studies from the U.S., Canada, Korea, California, and Sweden are used to illustrate the discovered trends and challenges to renewable energy sources connected to grids and demonstrate possible solutions. The research design employed in the study is diagnostic since the problem, its history, and solutions are all reviewed in the report. The study's recommendation is policy interventions to solve both the regulatory and technical challenges to the proliferation of gridded renewables.