Virtual power plants can aggregate a large number of distributed energy sources to participate in the regulation market, and improve its regulation performance then enhance its economic benefits in the regulation market through optimal control technology. Therefore, the method to evaluate the contribution of each generator in virtual power plant set to the regulation and allocate the regulation compensation according to each generator’s contribution becomes an inevitable problem of the virtual power plant. In view of the above problems, this paper first analyses the influencing factors of the regulation performance and the calculation model of the distributed generator or virtual power plant. Secondly, this paper establishes a regulation contribution assessment model for generators in virtual power plants. Finally, based on the proposed regulation contribution assessment model, this paper proposes a virtual power plant regulation compensation allocation method. The case study shows that the proposed method can effectively stimulate the generators set to improve the regulation performance.