Calcium hydroxide (lime) treatment and solid-state anaerobic digestion (SSAD) of corn stover (CS) were carried out simultaneously with different lime doses (0, 2, 3.5, and 5%) and feedstock to seed sludge (F/S) ratios (6, 8, and 10). It was found that the addition of 3.5% lime improved CH4 yield from 118 mL/g VS to 182 mL/g VS (54% increase) during SSAD of CS when F/S ratio was at 6. The improved CH4 production is consistent with increased relative abundance of several microbes that might play important roles in biomass degradation and CH4 generation. At higher F/S ratios (8 and 10), SSADs with different lime doses (0–5%) were all upset with accumulation of volatile fatty acids. Addition of 3.5% lime can obtain a net benefit of $18.4/tonne TS which are 44% of the gross benefit of power production ($41.5/tonne TS) via SSAD of CS and combined heat and power system.