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State of Michigan has relatively little solar resources but substantial installation capacity. Three governmental promotional policies are currently in position or have high potential to be adopted by the state government. This study analyzes three policy options: property tax exemption, Feed-in Tariffs, and Green Power Purchase. This study uses the optimization model to analyze governmental expenditure cost-efficiency of three major incentive schemes in Michigan. Realistic variables are incorporated into the model, including degression rates, discount rates, cumulative installation capacity, and economy of scale. This study constructs a handy framework where the cost-efficiency of governmental promotion policies could be measured and compared, with the purpose to assist state and local governments in making renewable energy policies with limited information.