UK weighs car credits for grid-connected EVs

British electric vehicles may soon function as temporary power stations for the national grid under a new government proposal. The plan involves offering carmakers financial incentives to install vehicle to grid technology in new models. This technology enables cars to send stored electricity back to the power network during periods of high demand.

The government is reviewing its zero-emission vehicle mandate as part of this consultation, which closed on Friday. Under the draft rules, manufacturers could earn a credit for every car equipped with bidirectional charging hardware. Each credit would allow a company to sell one additional petrol vehicle without facing fines for missing emission targets. This mechanism directly links EV hardware to the number of internal combustion engine cars that can be sold.

The primary goal is to help balance the grid as the UK shifts from fossil fuels to renewable energy sources. Wind and solar generation fluctuate, creating gaps when the sun does not shine or the wind stops blowing. Millions of connected EVs could fill these gaps by exporting power. This would reduce the need to operate expensive gas power plants to meet peak demand.

Ben Nelmes, chief executive of the think tank New AutoMotive, described the technology as exciting for grid stability and bill reduction. However, he argued that rewards should be based on actual usage rather than mere installation. He noted that the proposed credits are worth around £4,000 each, while the hardware costs only a few hundred pounds. Nelmes stated that few drivers own the expensive chargers required to utilize the system effectively, meaning manufacturers would profit over consumers.

Vicky Edmonds, chief executive of the Electric Vehicle Association England, expressed concern that the industry is moving too quickly. She pointed out that only a small fraction of current EV drivers use vehicle to grid or storage technologies. Edmonds said consumers are still focused on the immediate costs of car ownership and charging. She described it as premature to grant credits for a technology that has not been tested at scale in real-world driving conditions.

The scheme could allow carmakers to sell more polluting models in the coming years. Environmental groups estimate that changes to the ZEV mandate could result in an additional 147 million tonnes of carbon emissions by 2050. This projection assumes that credits for V2G cars would offset the sale of non-electric vehicles, delaying the full transition to zero-emission fleets.

Some drivers already participate in similar programs through companies like Octopus Energy, Renault, and BMW. Octopus Energy claims its service saves drivers £620 annually by allowing them to sell power back to the grid. The National Energy System Operator predicts that V2G cars could provide 1.2 gigawatts of power by 2030. That amount is equivalent to a single power station. By 2050, the capacity could grow to 41 gigawatts, meeting more than a quarter of peak energy demand.