firstly, this paper analyzes the necessity of market transaction of distributed generation, and summarizes the current situation of distributed generation transaction in the world. Then it discusses and analyzes the relevant policies of the Chinese government for distributed generation transaction, including photovoltaic subsidy policies, support policies for virtual power plants to participate in power trading, and support policies for distributed generation transaction pilot projects. According to China’s current electricity market rules and distributed generation transaction support policies, a distributed generation transaction platform system suitable for Chinese electricity market is designed based on blockchain technology. This paper compares and analyzes the two modes of virtual power plant and peer-to-peer transaction from the aspects of DG investor’s revenue and trading model. Finally, for the development of distributed generation trading in China, we draw conclusions and suggestions, and put forward the problems to be solved in the next step.