With the opportunities brought by China’s promotion of achieving the “dual carbon” targets, the technology of China’s photovoltaic industry is accelerating improvement, and the scale is steadily expanding. Distributed photovoltaic projects have the advantages of flexible configuration, nearby utilization, low investment, and saving land resources, with huge market space and development potential. Although the photovoltaic industry has enormous growth potential and good market prospects, it also faces many risks and challenges such as consumption problems and unstable income. Therefore, studying the economic viability of distributed photovoltaic projects is of great significance for making project investment decisions and promoting the sustainable development of the industry. This paper conducts the economic analysis of distributed photovoltaic power generation projects, calculates profitability analysis indicators such as financial internal rate of return (IRR) of project investment, financial net present value of project investment, and payback period of project investment. It also conducts preliminary sensitivity analysis on uncertain factors such as construction investment, operating revenue, and operating cost. It conducts in-depth sensitivity analysis on consumption, grid electricity price, and self-use electricity price, and proposes countermeasures to improve the economic efficiency of distributed photovoltaic power generation projects. The research results may provide reference and guidance for similar project investment decisions in more challenging investment environments in the future.