Abstract: Clean heating supply project is a major livelihood and popular project and is also an important way to ensure greater achievements in air pollution control. However, to promote clean heating projects, it is necessary to adapt to local conditions and economic access, fully learning local resource distributions, economic strengths, infrastructure conditions and environmental capacities. This paper investigated the development and policy status of clean heating supply in Northwest China, including heating supply status, electricity price policy, market transactions, government subsidy policy, and etc. Then the basic model of scheme design and benefit calculation of policy and market was established. Accordingly, the problems and challenges in the development of clean heating supply in Northwest China were analyzed, and some measures and suggestions were given to support the future development of clean heating supply projects in Northwest China.