Case Study of Vehicle‐to‐Grid Incentive Design Under Multiple Scenarios: A Policy‐Making Perspective

ABSTRACT The commercialization of vehicle‐to‐grid (V2G) technology is critically hindered by the absence of a cost‐effective and user‐acceptable incentive mechanism, which limits electric vehicles (EVs) users' willingness to participate in grid dispatch. To address this issue, this paper thoroughly designs the optimal V2G incentive from a policy‐making perspective, based on real‐world data from Zhejiang Province, China. The methodology involves: 1) defining the lower and upper limits of V2G incentive from user and utility perspectives; 2) categorizing V2G application scenarios (industrial parks, residential communities, public parking lots) and designing each business schemes; 3) constructing optimization models and performing Monte Carlo simulations; 4) conducting a social experiment in Zhejiang Province, China, to modeling user participation willingness based on real data. The quantitative results indicate that the optimal V2G incentives are 0.71 CNY/kWh for industrial parks, 0.77 CNY/kWh for residential communities and 0.32 CNY/kWh for public parking lots. A unified policy incentive is derived as 0.75 CNY/kWh through welfare weighting. Sensitivity analysis reveals that while the power source mix and V2G technology cost have limited impacts, advancements in power battery technology, higher time‐of‐use tariff differentials and increased subsidies can enhance overall welfare. Furthermore, improved power supply reliability and larger EVs numbers can reduce the optimal V2G incentive, projecting a decline to 0.30 CNY/kWh by 2029.