In most countries, energy transitions are well supported by the public; however, the implementation of renewable energy policies at the local level is often beset with resistance. Previous research has mainly focused on factors influencing community acceptance and strategies to improve social acceptance. Meanwhile, there has been limited analysis of the institutional gaps that lead to local resistance and the dynamic effects of institutional factors on renewable energy implementation at the local level. This paper thus investigates Taiwan's regulations for renewable energy development, presenting a detailed case study from a local context. It examines the factors contributing to local resistance to the implementation of national renewable energy policy targets and explores the dynamics of these resistance actions. Furthermore, through the lens of multi-level governance, the study reveals the institutional gaps and interactions that influence the execution of national policy at the local level. Six major institutional gaps in Taiwan's renewable energy governance were identified, including the lack of energy governance authorizations for local governments, a lack of superordinate site selection criteria and evaluation mechanisms for development zones, lack of governance systems that can address multiple issues, lack of scientific and academic information, lack of information disclosure and public participation mechanisms, and the burden of carbon reduction responsibilities and costs on local communities with few or no benefits. Compounded together, these six institutional gaps lead to the buildup of negative experiences interacting with the government and the renewable energy industry and feelings of worry, panic, distrust, and injustice among the local populace. These ultimately trigger resistance attitudes and the adoption of protest actions, hindering solar farm developments from reaching national policy targets. This study highlights the critical role of multi-level governance in facilitating the energy transition, emphasizing that the successful development of renewable energy requires a robust institutional framework. Such a framework is essential for addressing the complex governance challenges that arise during this transition, particularly aspects supporting local engagement. The six institutional gaps identified from the Taiwan case can serve as policy references for countries or cities intending to promote ground-mounted solar power.