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Due to the abundant solar energy resources,and photovoltaic generation can regulate the peak load,solar photovoltaic power generation has become the solutions for alternative energy.Two modes of industrial development are common,one is large-scale terrestrial photovoltaic power system,and the other is distributed photovoltaic power system.Because ofthe characteristics of users load,residential systems are used widely in Europe and Japan.At present,definition of the residential systems is not clear,andthis paper puts forward with the application scope of residential system.It states foreign policy for residential systems,and the types of the incentive policy are various,including laws and regulations,economic incentive mechanism,market incentive mechanism and R&D (research and development) incentive mechanism.Through analyzing the Californias case in US,this paper considers the incentive function for residential systems,and researches the development trend.On basis of Chinas actual conditions,proposing the suggestions on development of domestic residential systems.