Based on the survey of household photovoltaic demonstration project in Xinyu City of Jiangxi Province, stable investment recovery period and internal rate of return (IRR) are applied as the economic evaluation index, the energy recovery period and annual savings of standard coal as the environmental benefit evaluation index, the generation power, revenue composition and economic benefits under different circumstances, environmental benefits of 5 kW household photovoltaic system were analyzed. The results show that the yearly power generation of 5 kW household photovoltaic system is 4056.7 kWh, only 79% of the theoretical value. The system has a good economic benefit with the subsidies from the state and Jiangxi Province. The stable investment recovery period is less than 8 years, and the internal rate of return is 11.2%. Lack of subsidies from the state or Jiangxi would have a large impact on the economic benefits of investments. The photovoltaic system also has a good environmental benefit, saving 1.46 tons of standard coal each year, and the energy payback period is 5.22 years. The development of household photovoltaic needs support of national policy and appropriate promotion model.