Despite the high growth in renewable energy technologies in recent years, the overall share of renewable power is still low. to overcome the existing challenges and promote expansion of renewable energy production, governmental policies and incentives have a high influence on the behavior of project developers and investors and on public acceptance to renewable systems. This approach addresses the limitation of the Jordanian policy towards small renewable energy projects: residential and small businesses to make a better understanding for incentives offered. Two case studies were chosen to represent different land uses in Jordan first case study is a small house that represent the residential sector the second case study is a small business(factory) that represent the industrial sector. The Cost-Benefits analysis calculates net present value, internal rate of return and payback period for discounted cash flow were the avoided electricity cost considered as a positive cash flow. It starts with a self-financed phase as if the investor would pay the cost directly without any mediator, the second phase is applying the governmental incentives which is paying the interests on the loan related to REP, to understand the advantages comparing to the first phase, the third phase is applying the 30% tax credit (foreign policy) as if the Jordanian government would adopt. In both case studies the tax credit results showed much better results comparing to the governmental policy which mean that local policy toward small REP is not enough to compete with foreign policy and need more study, enhancement and development to make the renewable energy projects more desirable to public and investors.