This report Economics of Urban Distributed PV in China is a research analysis paper published by GIZ in the framework of the Sino-German Energy Transition Project. The project supports the exchange between Chinese government think tanks and German research institutions to strengthen the Sino-German scientific exchange on the energy transition and share German energy transition experiences with a Chinese audience. The project aims to promote a low-carbon-oriented energy policy and help to build a more effective, low-carbon energy system in China through international cooperation and mutual benefit policy research and modeling. The project is supported by the German Federal Ministry for Economic Affairs and Energy (BMWi) in the framework of the Sino-German Energy Partnership, the central platform for energy policy dialogue between Germany and China on national level. From the Chinese side, the National Energy Administration (NEA) supports the overall steering. The Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH leads the project implementation in cooperation with the German Energy Agency (dena) and Agora Energiewende.