The prolific generation of industrial solid waste (ISW) in China, coupled with its complex composition, presents significant challenges due to exceeding environmental capacity. Identifying an appropriate approach to maximize the use of ISW, particularly low-value industrial solid waste (LISW), is crucial for addressing environmental issues. This study explores the potential of converting LISW into refuse-derived fuel (RDF), an energy-rich precursor, as a promising method for disposal and reutilization. The advantages of RDF lie primarily in two key areas: management and technology. Regulatory aspects cover principles governing RDF feedstock preparation, storage and transportation requirements, and pollutant emission regulations. Technical considerations include pretreatment techniques, additive selection, and analyzing RDF as a substitute for fossil fuels. To assess the effectiveness of RDF technology in harnessing the remaining energy from LISW, this paper provides an overview of relevant national laws and regulations concerning incineration plants, guiding the utilization of RDF in such facilities. Additionally, using Shanghai as a case study, we evaluate the ISW situation, domestic waste incineration plants, and cement kiln plants to identify potential scenarios for RDF application in future energy systems. Our findings suggest that LISW holds significant potential as a power plant fuel, particularly when blended with higher calorific value materials to produce RDF particles with exceptional combustion performance, density, and storage characteristics.