The typical operation mode of distributed photovoltaic(PV) generation invested by the power grid corporation is analyzed. Based on the latest energy and electric policy, the business operation modes and the corresponding income sources are summarized. The cost/benefit predicting and calculating method for three typical operation modes are proposed, i.e. “local utilization and surplus injected into power grid” mode, “all injected into power grid” mode and “trade in the market” mode. Taking the conditions and parameters of Guizhou province as an example, a quantitative analysis is carried out. The initial investment, annual income, static payback time of distributed PV at various typical modes are calculated. The parametric sensitivity of distributed PV system construction cost per kW, local distributed PV annual utilization hours, distributed PV subsidy, distributed PV local utilization ratio and users’ electricity tariff are analyzed.