A mobile energy storage solution: how certain Australians are returning electricity from their vehicles to the power grid.
If you own an electric vehicle, it is common to charge it at home or at your workplace after use. However, there is an additional option available. With a bidirectional charger, you have the capability to return electricity to the grid during periods of high demand.
Currently, fewer than ten individuals in Australia are utilising this technology, known as vehicle-to-grid (V2G), as it is still in its infancy. At present, it is compatible with only one car model, the Nissan Leaf, and one specific charger, the Wallbox Quasar 1. Our estimates regarding the number of users are based on the sales figures of this particular charger. The high cost of these chargers, coupled with a complex array of regulations, presents significant barriers to wider adoption.
However, this situation may soon evolve. In the previous year, the Minister for Climate Change, Chris Bowen, introduced new Australian standards and communication protocols for bidirectional chargers, aiming to integrate them into the mainstream market. The availability of more affordable electric vehicles and bidirectional chargers is expected to enhance their attractiveness.
Should it gain traction, vehicle-to-grid (V2G) technology has the potential to be highly beneficial for the power grid, serving as a means to supply electricity as needed and to enhance grid stability in the face of fluctuations.
Should it gain traction, vehicle-to-grid (V2G) technology has the potential to be highly beneficial for the power grid, serving as a means to supply electricity as needed and to enhance grid stability in the face of fluctuations.
Should it gain traction, vehicle-to-grid (V2G) technology has the potential to be highly beneficial for the power grid, serving as a means to supply electricity as needed and to enhance grid stability in the face of fluctuations.
What are the financial savings?
In general, our interviewees reported that they charged their vehicles at home during the day using energy generated from their rooftop solar panels. In the evenings, when electricity prices surged, they utilised an application to sell excess power back to the grid. This strategy enhanced their savings on charging the car battery while also increasing their revenue from the grid.
For example, one user of vehicle-to-grid technology received a notification from their energy provider indicating that electricity prices had risen to over $20 per kilowatt hour, significantly higher than the usual rates of 25 to 45 cents. They promptly configured their car and home battery to sell power back to the grid. Within two hours, they successfully sold 28 kilowatt hours of electricity and earned more than $560. As they expressed, “I look forward to more such events.”
Is it easy to set up?
Delays frequently occurred, particularly when obtaining approval from the energy distributor. Several interviewees indicated that these delays could extend from several months to even years.
The majority of interviewees possessed backgrounds in technical disciplines, including engineering or technology. While some noted a considerable learning curve, others who utilised new software provided by their retailer experienced a more seamless “set and forget” approach.
What motivated them to proceed? The interviewees cited various reasons, including maximising the value of costly assets such as solar panels and electric vehicles, as well as the potential to completely eliminate their electricity expenses.
A majority of the interviewees, specifically four out of five, indicated that they achieved a modest annual profit of approximately A$1,000 rather than incurring a bill. Numerous participants expressed a desire to lessen their reliance on the grid and minimise their environmental footprint.
What are the negatives?
This is a common concern. But to date, there’s no consensus showing V2G shortens the battery life of EVs significantly. One recent study shows it increases degradation by 0.3% a year. But another showed V2G might actually extend battery life in some scenarios.
The awareness of Vehicle-to-Grid (V2G) technology is on the rise. The survey indicated that nearly 40% of participants expressed being very or somewhat familiar with V2G, a significant increase from the 17% who indicated familiarity in 2022. Among electric vehicle (EV) owners, close to 90% reported having knowledge of the concept.
As the number of motorists transitioning to electric vehicles (EVs) rises, the interest in vehicle-to-grid (V2G) technology is expected to grow. Although V2G enhances the attractiveness of EVs, alternative applications such as Vehicle-to-Home (which allows a vehicle to supply power to a home during outages or to reduce energy costs) and Vehicle-to-Load (which enables the use of an EV to operate power tools or appliances) are also noteworthy.
These technologies provide consumers with additional benefits, maximising the utility of their vehicles while they are parked in driveways and garages.
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