Great efforts are being made all over the world towards the promotion of clean energy for environmental protection and scheduling energy consumption pattern to meet its increasing demand. The grid is to be modified or upgraded to promote clean energy, control the energy consumption pattern and bring security to grid. Solar PV systems have become common-place in many cities and regions, and is a core technology in purpose-built low-energy homes, but evidence is emerging that in many cases electricity output may be significantly lower than expected. There are many challenges and issues in the implementation of smart grid. This paper presents challenges and issues in smart grid concept with solutions.