Abstract: Levelized cost of energy（LCOE）is the general economic indicator for evaluation of power generation technology in the world. Based on the traditional LCOE evaluation model, the cost of photovoltaic power generation is refined. The cost of the taxation with calculating depreciation credit and the loss are taken into consideration. The income of the Clean Development Mechanism（CDM）is also considered. A more accurate and more comprehensive LCOE model is presented. Moreover, combined with other investment indicators, a photovoltaic power generation benefit model corresponding to the current development status is proposed. Taking a 3 MW distributed photovoltaic power plant project in Nanjing as an example, the sensitivity analysis of factors that would affect benefit of photovoltaic power generation is carried out to further explore the feasibility of photovoltaic power to grid parity.