Is there a near-term market for vehicle-to-grid electric vehicles?

•We used a CV design to estimate WTP for V2G enabled EVs.•We compared WTP estimates with projected vehicle cost under different battery cost scenarios.•In all scenarios, WTP estimates are smaller than projected costs.•Range anxiety, stringent V2G contract, and battery cost explain the outcome.

We assess the near-term market for vehicle-to-grid electric vehicles (V2G–EVs) using an internet-based contingent-valuation survey. V2G–EVs are a special breed of electric vehicles used to return power to the grid for ancillary service support or during periods of peak electricity demand. Whether or not these vehicles are economically viable is of interest to policy makers and utility companies. We estimate a demand function for V2G–EVs, consider the importance of different vehicle attributes on demand, and then assess their likelihood of near-term success on the market. To assess the potential market, we compared consumer’s willingness to pay for V2G–EVs with the estimated cost of V2G–EVs under different scenarios of battery cost projection. We found, in all scenarios, WTP estimates are lower than projected costs. Range anxiety, stringent V2G contract, and high battery costs are the primary reasons for the outcome.