At present

China's subsidy policy on the natural gas distributed energy resource is comparatively deficient that only a small number of provinces and cities have issued the relevant policies which still exist some disadvantages

in which case a subsidy guiding standard is urgently needed. A mechanism of subsidy by stages for the natural gas distributed energy resource is proposed based on a specific project classification method and actual laws for the project development stages. A definition method is also put forward for the development stages of energy programs. Then a subsidy measurement model for the natural gas distributed energy resource is established based on the internal rate of return method

which makes a quantitative analysis on the relationship between the amount of subsidies and the internal rate of return on projects. Finally

a subsidy calculation example in Shanghai is made to provide a reference for the subsidy policy making of natural gas distributed energy resource in provinces and cities.