Abstract Studying the economic performance is of great significance to the policy improvement and investment decisions making of concentrated solar power (CSP) industry. This study developed a cost-benefit model to analyze the economic benefits of CSP industry, under the current technological level and policy system of China. The results showed that: Firstly, the huge initial costs resulted in that the investment of CSP industry had to bear a long capital recovery period, which might add the investment risks; meanwhile it was still economically feasible because of better expected benefits. Secondly, for CSP industry, the internal rate of return mainly varied from 8% to 12%, and the average levelized cost of energy was $0.148/kWh; the economic performance of CSP industry was attractive from the multiple dimensions analysis, and the benchmark feed-in-tariffs could provide effective support for the CSP industry development of China. Thirdly, adopting solar tower CSP technology was better choice to improve the economic benefits of CSP industry, compared with parabolic trough and linear Fresnel CSP technologies. Lastly, the direct normal irradiation, initial costs, annual electricity production and loans ratio had important impacts on the economic benefits of CSP industry, and should be paid more attention in investment decisions. Graphical abstract The policy system determines the costs and benefits of CSP industry by the economic parameters, and then affects the economic performance of CSP industry. The analysis on the economic benefits can provide scientific basis references for the industrial policy improvement and investment decisions. Image Highlights • Develop a cost-benefit model to analyze the economic performance of CSP industry. • Capital recovery period, usually more than 11 years, adds investment risks of CSP. • In spite of high initial costs, investment in CSP industry is economically feasible. • IRR of CSP industry mainly varied from 8% to 12%, with average LCOE of $0.148/kWh. [ABSTRACT FROM AUTHOR]