Our cars spend most of their time sitting unused. If you own an electric vehicle (EV), you might leave it plugged in at home or work after driving it. But there’s another option. With a bidirectional charger, you can sell power back to the grid when demand is high.
Fewer than ten people across Australia are doing this, as the technology – known as vehicle-to-grid (V2G) – is still very new. It only works with a single car model (Nissan Leaf) and one charger (Wallbox Quasar 1). We’ve estimated the number of users based on sales of this charger. The chargers are costly, and there are complex regulations to navigate.
That may soon change. Last year, the Climate Change Minister, Chris Bowen, announced new Australian standards and communications protocols for bidirectional chargers to help mainstream technology. With more affordable EVs and bidirectional chargers on the horizon, V2G could become a practical way to support the power grid, releasing energy when needed and stabilising fluctuations.
This week, Australia’s renewable energy agency released a V2G roadmap, noting that widespread adoption could “materially reduce electricity costs for consumers and accelerate national emissions reduction”.
Setting Up V2G Isn’t Easy
Our interviews with five early adopters from New South Wales and South Australia revealed that setting up V2G has been long and complex. They had to rely on trial and error without a clear guide.
Some turned to professional networks or social media groups for advice. They invested significant time and effort in finding electricians, installers, and charger manufacturers to get their systems running. Strata approvals were needed, and they also had to negotiate with power retailers and distributors.
Maximising Savings
Typically, our interviewees charged their EVs at home during the day using rooftop solar. When electricity prices peaked in the evenings, they used an app to sell power back to the grid, reducing their charging costs while earning money from energy exports.
For example, one V2G user received an alert from their energy retailer that power prices had surged to over $20 per kilowatt hour – far above the usual 25–45 cents. They immediately set their car and home battery to export power to the grid. Over two hours, they sold 28 kilowatt hours of electricity, making more than $560. As they put it, “I look forward to more such events.”
Many interviewees closely monitored energy prices, solar output, and EV battery levels to optimise power exports. To prevent excessive depletion, they set a minimum charge limit – typically 30% – ensuring their vehicle had enough energy for driving.
Is There a Downside?
A common concern about V2G is that it might accelerate battery degradation.
While this is a valid concern, there’s no clear evidence that V2G significantly shortens battery life. One study suggests V2G increases degradation by just 0.3% per year, while another indicates it could extend battery life in some situations.
In a survey of more than 1,300 motoring organisation members last year, battery warranty concerns outweighed worries about battery lifespan. Most EV manufacturers, apart from Nissan, omit V2G in their battery warranties, making owners nervous that using the technology might void their coverage.
Awareness of V2G is growing. The same survey indicated that close to 40% of respondents. We were very or somewhat familiar with V2G, up from 17% in 2022. Among EV owners, almost 90% knew about the concept.
Moving Beyond Early Adopters
For V2G to become mainstream, it needs to be simpler, cheaper, and easier to set up. Reliable and accessible information will be key to driving adoption. Expanding government incentives to cover bidirectional chargers would help reduce upfront costs and make the technology more accessible.
Even within the EV supply chain, knowledge of V2G remains limited. Car dealerships will need to know which models support the technology, while electricians may require specialised training to install and maintain these chargers.
As EV prices continue to drop due to increased competition, V2G capabilities could help boost sales.
As more motorists switch to EVs, interest in V2G will likely rise. While V2G can enhance the appeal of EVs, other bidirectional capabilities – such as Vehicle-to-Home (V2H), which allows an EV to power a house during blackouts or reduce electricity costs, and Vehicle-to-Load (V2L), which enables an EV to power tools and appliances – will also play a role in shaping the future of energy management.