The development of renewable energy in China faces the dual challenges of a rapidly expanding subsidy fund gap and a high rate of “wind and light abandonment”. Based on field research, this book discusses and analyzes how the existing fixed feed-in tariff (FIT) system creates the resource allocation logic of “local treats and central payment” at the institutional level, and creates various frictions and contradictions with the rigid power market system, thus creating the abovementioned development dilemma. On the basis of further analysis and summarization of the current economic situation and international experience in renewable energy development, this book proposes ideas for solving the problem, and based on the commodity and environmental attributes of wind power and photovoltaic power generation, puts forward corresponding policy recommendations on how to adjust and transition the current renewable energy subsidy policy.