Vehicle-to-grid (V2G) technology is emerging as a potential game changer in energy consumption, with experts predicting that it could significantly lower electricity costs for households by 2026. According to Dan Adams, co-chief executive of Amber Electric, the long-awaited promise of V2G is finally becoming a reality. “I’ve been working in this area for 18 years and vehicle-to-grid technology has always been this mythical thing on the horizon,” he stated. “It’s exciting to now be at a moment that it is here and it’s going to be widely available soon.”
V2G technology enables electric vehicles (EVs) to connect to the electricity grid, effectively transforming them into powerful batteries that not only transport drivers but also provide energy back to the grid. Recently, two major energy retailers, Origin Energy and AGL, announced trials for this innovative technology. Origin’s trial will involve BYD Atto 3 SUVs and will begin in 2026, selecting fifty participants to evaluate the system. AGL’s competing trial, also slated for 2026, will provide discounted bi-directional chargers to fifty customers while recruiting another fifty to use their own compatible equipment.
The trials aim to address several barriers to V2G adoption, including concerns about battery life and compatibility. Tim Washington, chief executive of Jet Charge, highlighted that many consumers worry about battery degradation from V2G usage. “People get very worried about battery degradation through V2G but it’s an extremely gentle form of energy draw compared to putting your foot on the accelerator,” Washington explained. He pointed out that while accelerating can draw between 80 to 300 kilowatts, home-based trials would discharge at a much lower rate of seven to eleven kilowatts.
Despite the excitement surrounding V2G, the limited number of compatible chargers and vehicles has posed challenges. New Australian bi-directional charger standards are expected to be released in late 2024, which may facilitate broader adoption. Currently, select brands like Nissan, Renault, Kia, Ford, Audi, Volkswagen, and Polestar have models ready for V2G. However, major manufacturers such as Tesla have yet to confirm their support for the technology. Washington noted that if the trials demonstrate success, competitive pressure may prompt these manufacturers to quickly adopt bi-directional charging capabilities.
Interestingly, Adams indicated that many electric vehicles already on the road are technically compatible with V2G technology, even if their manufacturers do not advertise this feature. Amber Electric is conducting an $8.4 million trial in collaboration with the Australian Renewable Energy Agency. Early findings suggest that vehicles not marketed as V2G-compatible can still function with bi-directional chargers. “Almost every EV on the road today is actually technically capable of vehicle-to-grid, which is a huge unlock because that was not well understood at all,” Adams stated.
Participants in the ongoing tests have the potential to earn between $2,000 and $3,000 annually by selling excess electricity back to the grid during peak demand periods. Adams emphasized the significant financial implications: “We’re taking $25,000 that you’ll be able to make out of your car over a ten-year life, and that fundamentally changes the economics of owning an EV.”
The commercial viability of V2G offerings will be crucial to their success, according to Alina Dini, head of energy and infrastructure at the Electric Vehicle Council. The trials will assess various commercial arrangements, such as offering free charging or bill credits for regular connections to the grid. Some participants may even profit from the energy they sell back, while others, like those involved in Amber’s trial, will focus on maximizing their returns.
Dini believes that the ability to use cars as household batteries will enhance their appeal. “It is definitely the reason why some people will choose to buy an electric car,” she noted. “There will be some customers that might choose an EV over a home battery because the EV, when it has vehicle-to-grid, can do both.”
As vehicle-to-grid technology continues to develop, the landscape of electric vehicle ownership and energy consumption might be on the brink of a significant transformation, offering potential savings and convenience for consumers.
