China is undergoing a market-oriented reform in energy and the residential sector will be involved in the near future. The analysis of energy poverty is crucial in breaking the illusion of the dilemma between enhancing energy efficiency and controlling poverty. Based on Chinese residential energy consumption survey, we firstly estimated the energy poverty in China by the “10% indicator” and “LIHC indicators”, and then proposed a “minimum end-use” method to classify the energy-poor households into lifeline and consumption energy poverty. Results show that energy poverty exists in China at the proportion of 18.9%, and 46% of the energy-poor houses are in short of modern energy consumption and are sensitive to tariffs, with a level of electricity consumption lower than the basic demand. The energy poverty rate is highest in central China, while the lifeline energy poor are relatively concentrated in the western region. In terms of public policy, we suggest focusing on heterogeneity by considering different groups of households when implementing energy efficiency measures , and targeting more on the consumption energy poor in poverty alleviation . We also suggest paying particular attention to targeting households with low income by supporting practices such as coupons for energy consumption and appliance purchasing.