The world is facing depletion of fossil fuel sources thus urged for alternative and renewable energy sources. The conventional energy production raised a concern regarding greenhouse gases (GHG) emission that has led experts to find ways in reducing it. Energy production from renewable energy sources needs efficient support mechanisms to be successful. Many EU (European Union) countries namely Germany, Sweden, Finland and Denmark have been successful in deploying renewable energy sources by enacting judicial policy support mechanisms. Malaysia too has utilized several policies for promoting renewable energy but its success is yet very low. This paper is aimed to analyze renewable energy policies of Malaysia as to compare with selected EU countries successful policies. RETScreen software is used to analyze policies cases for Solar PV and Biomass sources. A comparative analysis is done for Malaysia with Germany and Sweden to obtain the estimation of net present value, internal rate of return and payback period. The finding provides indication why Malaysia renewable energy policy is not efficient as the two EU countries. The paper also discovers that the proposed policy for Malaysia has shown to a better option for future policies embedment.