The problems that have developed with advancement are not unique. There have been similar situations in places such as Spain and Germany as well where the contract costs of FIT has increased doubts especially under the financial crisis recently (Stokes 490-500). Therefore there is a need to view the challenges existing from a different perspective which can help policy makers to transition towards creating a sustainable carbon free electricity industry.
üFirstly, it becomes important for the policy makers to make the programs on renewable energy to be adaptive and their prices should be changed in accordance to the rules at the time of implementation. Policies of renewable energy are discussed in accordance to stability of policy which is important for spurring investment. However, political ramifications are common when focusing on stability especially asymmetric information is on which the government is operating. Therefore, it is required for policy makers to make adaptive policies with the help from several opportunity periods wherein learning and iterating are prime goals (Ontario Smart Grid Forum).
üThe nature of FIT policies furthermore should be such that they assist the projects to have longer lead time developing and approvals are passed in accordance to the same. Therefore policy makers have to make sure the stability of their policy is evident even for the investors in order to keep their trust.
üHowever if static policy is developed then it may lead towards opposing and undermining the support gained for the policy. Therefore, the policy makers have to make themselves open for adapting management while implementing projects in order to adjust the flexible policy with time with availability of new data. If there is increase in prices and stability of a program is sure then it leads towards policy getting abandoned completely because of political support erosion. This tension requires to be navigated.