Features
19 Feb 24

First mass market V2G energy tariff launched in UK

Fleets and EV drivers could save €1000 per vehicle per year in charging costs, after one of the UK’s energy majors launched the country’s first mass market vehicle-to-grid (V2G) tariff for domestic electricity supply.

V2G (also known as bi-directional charging) enables an electric vehicle to charge its batteries from the national grid as well as push power back into the grid.

Balance energy supply and demand

In an ideal scenario, an EV will recharge its batteries during off-peak hours and return the power to the grid at periods of high demand.

This helps to balance energy demand and supports renewable energy by enabling the storage of wind and solar power when there is an excess of supply.

Limited V2G vehicles

V2G currently only works with CHAdeMO charging technology in the UK, so the Nissan Nissan LEAF and e-NV200 van, and Mitsubishi Outlander PHEV are the only three vehicles capable of bidirectional charging. However, a number of other OEMs are developing V2G capabilities.

Octopus claims its Octopus Power Pack tariff will save the average EV driver more than £850 per year (EUR 1,000), compared to charging on a standard domestic tariff, so long as they can plug their vehicles in for about six hours per day (170 hours per month) and charge less than 333kWh per month.

Drivers can set a minimum state-of-charge so that when supplying the grid, the batteries never go below this level.

Support a green grid

Alex Schoch, Head of Flexibility at Octopus Energy, said V2G is going to be a major lever for a flexible, green grid, and called on manufacturers to build vehicles that are compatible with V2G technology.

"Once we reach 10 million electric cars on the road, we’ll have enough storage to power the entirety of Great Britain during peak times. All our drivers have to do is plug in regularly and their charging is completely free,” he said.

EVs can supercharge ESG commitments 

Adam Hall, Director at Drax Electric Vehicles, urged fleets to view EVs as electric assets that can not only transform how organisations use energy but also supercharge sustainability agendas through V2G technology.

He said EVs will create extra demand for power that will impact the price of electricity, but this price volatility will create an opportunity for businesses to profit through optimising bi-directional V2G charging. 

“Historically, fleet vehicles have generated revenue only while operational. What V2G offers, in principle, is the opportunity for fleets to generate revenue in their downtime, too,” said Hall. “V2G technology will soon become more affordable, and organisations with EV fleets will be in a key position to benefit.”

Image: shutterstock_1051405301

Authored by: Jonathan Manning