Willingness to pay for vehicle-to-grid (V2G) electric vehicles and their contract terms

Abstract

Vehicle-to-grid (V2G) electric vehicles can return power stored in their batteries back to the power grid and be programmed to do so at times when the grid needs reserve power. Since providing this service can lead to payments to owners, it effectively reduces the life-cycle cost of owning an electric vehicle. Using data from a national stated preference survey, this paper presents a study of the potential consumer demand for V2G electric vehicles. In a choice experiment, 3029 respondents compared their preferred gasoline vehicle with two V2G electric vehicles. The V2G vehicles were described by a set of electric vehicle attributes and V2G contract requirements such as “required plug-in time” and “guaranteed minimum driving range”. The contract requirements specify a contract between drivers and a power aggregator for providing reserve power to the grid. Our findings suggest that the V2G concept is most likely to help EVs on the market if power aggregators operate either on pay-as-you-go basis (more pay for more service provided) or provide consumers with advanced cash payment (upfront discounts on the price of EVs), rather than imposing fixed requirements on participants.