China is attempting something no other nation has successfully achieved at scale: turning millions of parked electric cars into a giant shared battery that can stabilize the power grid. Through a national push into vehicle-to-grid (V2G) technology, authorities plan to convert idle EVs into mobile energy storage units capable of sending electricity back into the system when demand spikes. On paper, the opportunity is extraordinary. In practice, the hurdles remain substantial.
The scale of China’s ambition is without precedent. The country already hosts the largest electric vehicle market in the world, with more than 40 million EVs on the road. It also leads global battery production and EV manufacturing, from BYD to CATL. Building on that momentum, Beijing is installing specialized two-way charging stations that allow power to flow both to and from parked vehicles. Over 30 V2G pilot stations have been constructed across nine major cities, including Beijing and Shanghai, with government targets to reach 5,000 stations by 2027 out of the nation’s projected charging-point network of 28 million stations.
If adoption reaches the levels officials are forecasting, the results could reshape China’s energy system. Analysts suggest that by 2030, a fleet of around 100 million EVs could enable up to one billion kilowatts of flexible capacity. At that magnitude, electric cars would operate as an immense decentralized battery, capable of absorbing electricity when supply is plentiful and releasing it during peak periods. The potential contribution to national energy security and grid stability is immense.
The core concept of V2G is rooted in an obvious reality: cars spend most of their time idle. Research from the U.S. Department of Energy indicates that vehicles sit unused roughly 95 percent of the time. That idle capacity represents lost value in an era when electricity prices fluctuate and storage is increasingly valuable. With V2G, drivers could charge their vehicles using low-cost energy at night, then sell a share of it back during the day at higher prices. In theory, this transforms consumers into power suppliers and positions EVs as dynamic grid assets instead of passive machines.
There are also broader environmental implications. China still relies heavily on coal, which accounts for more than half of its electricity generation. By adding flexible storage capacity derived from EV batteries, the country could smooth the variability of renewable sources such as wind and solar, which produce uneven output depending on weather conditions and time of day. A more flexible grid would help reduce curtailment, the practice of wasting renewable power because it cannot be stored or transmitted.
Yet despite the promise, V2G has been slow to scale globally. More than 150 pilot projects across Japan, South Korea, Europe, the United States, and Australia have remained small and fragmented for more than a decade. While the technology functions, trials have rarely evolved into commercially viable deployments due to financial uncertainty, hardware barriers, and consumer hesitation. Many of the same challenges are emerging in China.
One of the largest obstacles is cost. Bidirectional chargers remain expensive, priced at two to three times the cost of a standard one-way unit. At current estimates of roughly $2,100 to $2,800 per station, scaling to thousands of sites requires substantial investment long before returns materialize. So far, most V2G initiatives in China rely on subsidies or promotional pricing, rather than sustainable revenue models. Without stable pricing schemes and predictable earnings for drivers, widespread participation is difficult.
Another challenge is hardware compatibility. Only a modest share of new EVs in China currently support bidirectional charging. Leading domestic brands such as BYD, Nio, and GAC Aion are gradually adding support, but the majority of vehicles remain incompatible. Upgrading the nation’s EV fleet will take years, even under optimistic conditions. Until more compatible vehicles reach the market, V2G cannot reach meaningful scale.
Consumer hesitation presents yet another barrier. EV batteries are expensive to replace, and drivers worry that the additional cycling will accelerate battery degradation. These concerns often outweigh potential earnings. As a result, even willing participants may be hesitant to fully discharge their vehicles for grid purposes, especially if they rely on the vehicle for daily use. Addressing this perception challenge will require clearer data, stronger warranties, and compelling financial incentives.
Electricity pricing adds further complexity. China’s market remains dominated by state-regulated rates, which limits price fluctuation throughout the day. Without meaningful price variation between peak and off-peak periods, consumers lack financial motivation to sell electricity back to the grid. In contrast, markets like California operate under dynamic pricing systems where rates shift regularly based on demand. Such structures make V2G more naturally profitable.
Despite these obstacles, pilot programs in China have demonstrated the upside when conditions align. Verified tests indicate that drivers can earn the equivalent of around $200 a month in charging credits by charging during off-peak periods and selling during peak windows. One EV owner in Shenzhen earned almost 1,400 yuan in credits over just two days by participating in a promotional test program, enough to cover his charging costs for an entire year. However, these rates are artificially high due to subsidies, and unlikely to reflect typical long-term earnings.
Policy momentum is nonetheless accelerating. In the past year, China has published formal technical standards for V2G systems and signaled interest in developing more flexible, market-based energy pricing. Local governments are experimenting with their own tariff models to encourage participation and improve profitability. Meanwhile, large energy companies and automakers are collaborating on V2G pilots to refine business models.
Internationally, momentum is also building. The European Union has mandated bidirectional charging capabilities for all stationary charging infrastructure beginning in 2027. The Netherlands is testing V2G in taxi fleets, and Australia and Japan are trialing small-scale deployments. Still, progress remains modest compared to China’s ambitions.
Industry analysts remain divided on whether China can commercialize V2G in the near term. Many believe the necessary ecosystem changes will take years: new pricing structures, new consumer incentives, new vehicle standards, and new charging infrastructure. The challenges are interconnected. Hardware improvements depend on demand; demand depends on pricing; pricing depends on regulation. The system has multiple pressure points that must align.
Yet optimism persists. China’s EV boom itself was once viewed as unrealistic, requiring years of subsidies, pilot programs, and infrastructure investment before market forces aligned. The same arc may repeat with V2G. Progress may be uneven, but the direction of travel is clear.
At its core, China's V2G push is an attempt to rethink what an electric car represents. Rather than being merely a transportation tool, the EV becomes an economic unit, an energy storage device, and a contributor to national grid stability. If China succeeds, the benefits will reach far beyond its borders, reshaping how the world views electric mobility and distributed energy systems.
Whether the technology reaches maturity by the end of the decade will hinge on the country’s ability to reform electricity pricing, scale infrastructure, broaden vehicle compatibility, and convince drivers that the rewards outweigh the risks. It may take three or four more years before the technology begins scaling meaningfully. But the underlying strategy aligns with China’s established strengths in manufacturing scale, policy coordination, and long-term planning.
For now, China is building the foundation for a system that could redefine both the automotive and energy sectors. The world will watch closely as one of the most ambitious energy experiments in history unfolds.
