The paper has been designed based on the experimental survey and questionnaires to 797 farmers, 25 technicians in 41 villages, and 8 towns of Yuxi region, Yunnan, China—to analyze the universal problems in biogas utilization process, including (a) low biogas utilization rate, critical dysfunctional phenomenon; (b) poor comprehensive utilization of biogas, bio-slurry, and residue; and (c) imperfect post-installation service system. Combined with the investigated findings, the article has analyzed the main causes and influencing factors which lead to the different problems. In the end, having based on the adequate interpretation about the studying conclusion, recommendations and countermeasures for the future sustainable development of China's rural household biogas proper measures can be put forward onto consideration table, which includes (a) encourage joint household biogas construction; (b) carry out comprehensive utilization demonstration actively; (c) establish a relatively complete post-installation service system by encouraging technicians to get involved in the maintenance and management initiations. The establishment of incentive systems and co-operative approaches can help to achieve the ultimate target of appropriately “biogas-designed” that are sustainably developed and constructed in China.

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