Abstract: China’s photovoltaic industry has experienced a rapid development in recent years. Under the requirements on connecting new energy power into the grid at fair price, how to improve economic performance of photovoltaic power generation has drawn attention from the industrial community. Economic performance of photovoltaic power generation is influenced by a series of factors,such as initial investment, power generation and operational and maintaining costs. This article takes into account the principles and methods for levelized cost of electricity (LCOE) of PV power stations and analyzes the factors affecting the power generation of PV power stations. To maximize economic performance of PV power stations, the article points out that it is necessary to make a comparative study of the key designing points in the light of the project characteristics, such as selection of the key equipment like PV components and inverters and setup of the capacity ratio, thus acquiring the best design plan. Taking a certain 100 MW mountainous PV power project for instance, the results from analysis and comparation shows that the conversion efficiency and economic performance of the N-type PV components are better than those of the P-type while LCOE of string inverter is better than that of centralized inverter. LCOE of PV power stations sees the trend for first declining and then rising with a higher capacity ratio.