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EXCLUSIVE: Vehicle to grid technology that allows users to sell power back to the grid during periods of high demand could cut annual charging costs by 70 per cent, new analysis claims
‘Vehicle to Grid' (V2G) technology that enables electric vehicle (EV) drivers to sell power back to the grid at times of high demand could cut charging costs by 70 per cent a year, allowing motorists to earn an average of £320 a year by 2030, a new analysis has claimed.
Published today, the report from influential analyst firm Cornwall Insight found that EV drivers who adopt a service allowing them to trade electricity with the grid could see the wholesale power prices they face fall to just 2.4p/kWh compared to 9.8p/kWh for those without access to V2G services.
The report - which was commissioned by campaigning smart technology non-profit Smart Energy GB - also details how EV users with smart meters are able to take advantage of time-of-use tariffs that give them access to off-peak rates that can be up to six-times lower than peak-time costs.
Although V2G tech is still nascent, the report - titled Turn on, Plug in, Check out - claims the tech is on the cusp of becoming a common feature of domestic charging services and would enable drivers to maximise savings by buying power during low-demand periods and selling it back to the grid when prices are high.
"More and more customers are making the switch to EVs," said Jacob Briggs, a senior consultant at Cornwall Insight. "To make the transition as smooth and efficient as possible, embracing smart meter enabled charging is crucial.
"This not only saves EV drivers money on electricity bills, but also helps take the strain off the grid as EV adoption grows. Helping to accommodate more renewable electricity generation and lower electricity costs and carbon consumption for everyone."
The cost of car charging is expected to fall for all EV drivers through to 2040 as more renewables come online and smart technologies allow EVs to better take advantage of periods when there is a surplus supply of clean power and wholesale prices are low.
However, the report argues that even if electricity costs for EV drivers come down as forecast, those motorists using V2G services could still generate £250 a year in payments for selling power to the grid.
Briggs claimed V2G tech has the potential to be a "game changer" for EV charging. "V2G makes EVs not only the sustainable choice, but also strengthens their case as a cost-effective transportation option," he said.
Cornwall Insight also claimed that if all the EVs in its system modelling used smart charging to avoid peak times, around 7GW of peak-time electricity demand from EVs could be avoided in 2030 - more than the capacity of Drax Power Station that powers more than four million homes.
"This report clearly demonstrates that, as smart meter-enabled technology becomes more commonplace, the financial and environmental benefits will only continue to grow," said Sara Higham, director of corporate affairs at Smart Energy GB. "As well as enabling innovative reward schemes through smart charging, V2G and flexible tariffs, smart meters also ensure that households get accurate bills and greater visibility of their energy usage.
"Drivers who want to maximise the benefits of their electric vehicle should contact their energy supplier now to request a smart meter installation."
The update comes off the back of wide ranging reaching efforts to accelerate the roll out of nascent V2G technologies in the UK.
For example, businesses with at least two electric cars made by Genesis, Hyundai, Kia or MG were invited to take part in a trial of V2G workplace charging technologies in the summer by Engineering solutions company Hanger19 and EV leasing company Drive Electric.
And in February Octopus Energy launched a Power Pack tariff, which the firm hailed as the UK's first mass market V2G tariff guaranteeing free charging for drivers who plug in their car for roughly six hours a day and stay below a usage limit of 333kWh per month.
Similarly, OVO Energy has undertaken a series of large scale trials to demonstrate the effectiveness of V2G technologies and test how customers engage with the service.
Cornwall Insight's report comes at a time when more than half of UK drivers are likely to choose an EV as their next car - rising to 75 per cent among those aged 18 to 24 - according to new research published by CA Auto Bank's UK vehicle financing subsidiary CA Auto Finance.
A number of manufacturers are also on track to meet this year's Zero Emission Vehicle (ZEV) Mandate target after EVs' market share for new cars in August topped 22 per cent for the first time.
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