Concentrated Solar Power (CSP), as one form of renewable power generation to supply stable and dispatchable electricity to the grid, has been developing rapidly in Europe, the United States and other countries and regions. With constant improvement across the industrial chain and technology advancement, the CSP industry is expected to progress into a new stage of large-scale development. In 2012, to promote the development of China's domestic CSP industry, the National Energy Administration (NEA) commissioned the National Solar Thermal Energy Alliance, in collaboration with the National Renewable Energy Center and other organizations to carry out a policy study on the CSP industry development. By analyzing the status quo of China's CSP technology development, manufacturing capacities, as well as various technical and policy issues, the researchers finds out that the high cost of solar thermal power generation is the biggest obstacle that has hampered the commercialization of CSP technologies in China. Given there has been no commercial CSP plant built in China and that international experiences cannot be applied without customization, the researchers, with reference to the internationally recognized project financial modeling methodology, have analyzed the capital costs and operating costs of a prototypical 50 MW parabolic trough power plant with base location in China, as well as the indicative potential of cost reduction by 2020. Assuming that the existing 1 yuan/(kW•h) Feed-in Tariff (FiT) appropriate for solar PV development also applies to the CSP development, various short-term incentive policies for the CSP development have been recommended in a practical manner. In addition, different ways for determining the appropriate level of CSP specific FiTs, as well as the fixed FiT in particular, have been thoroughly discussed in this paper.