Investment in vehicle-to-grid and distributed energy resources: Distributor versus prosumer perspectives and the impact of rate structures.

Photovoltaic panels, electric vehicles, and vehicle-to-grid technologies are becoming more common and hold significant promises to improve the grid and foster the energy transition. However, significant questions remain unanswered with respect to who should invest in this equipment and what tariff should be used. This paper examines whether the distribution company or prosumer should invest in and manage Distributed Energy Resources (DER), the ideal combination of DER to utilize, and the appropriate tariff to implement. Central to this analysis is the assessment of different stakeholder objectives, particularly from the investor's perspective, where net present value is used as the primary criterion for evaluating the different investment scenarios. Additionally, the impact of these scenarios on the annual system cost is calculated. A mathematical scenario analysis model is developed to simulate the operation of DER and energy management systems. This model utilizes the Vermont electricity grid's real-world consumption, generation data, and cost structures. The results underscore the significance of incorporating vehicle-to-grid technology to enhance the profitability of DER investments. This inclusion of specific data sources and stakeholder criteria aims to provide insight into the complex dynamics of smart-home deployment. • EVs for V2G is the best investment scenario for the distributor. • Investment in solar PV and V2G returns the highest NPV for prosumers. • Offering a special rate for EV usage reduces both distributor and prosumer costs. • Selling back to the grid is necessary to make prosumer's investments profitable. • Sensitivity analyses are carried out on the load and size of the PV and Battery. [ABSTRACT FROM AUTHOR]