Photovoltaic (PV) power generation is a significant way to deal with the energy crisis and protect the environment both in China and overseas. On the basis of analysis of the four factors that impact the development of China's PV power generation, including solar-energy resources in China, PV industry conditions, research and development of solar-cell technology, and related PV policies, the prospects and development potential of PV power generation in China are discussed. Using actual data on China's PV power generation, the cost of PV modules and the potential decrease in the initial investment required to establish PV systems are analyzed, and the declining trends in the generation cost and purchase price of PV power in China are estimated. The economic feasibility of PV power generation is studied by comparing the trends of generation costs for PV and thermal power. Finally, the energy conservation and emission reduction benefits of PV power generation are analyzed. DOI: 10.1061/(ASCE)EY.1943-7897.0000062. (C) 2012 American Society of Civil Engineers.