- V2G could earn EV drivers an average of £320 per year by 2030
- Those who adopt the V2G service could lower electricity price to 2.4p/kWh
- The cost of charging your car is expected to reduce for all EV drivers between 2025 to 2030 and 2030 to 2040
Technology that enables electric vehicle (EV) drivers to sell their electricity back to the National Grid when demand is high could reduce EV drivers’ wholesale costs by 70% annually, new research from Cornwall Insight has found.
‘Vehicle-to-Grid’ (V2G) technology could earn EV drivers an average of £320 per year by 2030 and would allow them to both buy and sell electricity to and from the grid, according to the research.
EV drivers can then maximise savings by buying power during low-demand periods and selling it when prices are high.
The report from Cornwall Insight was commissioned by Smart Energy GB found that EV drivers who adopt the V2G service could lower wholesale electricity pricing to just 2.4p/kWh compared to 9.8p/kWh paid by those who don’t use smart charging.
Jacob Briggs, senior consultant, Cornwall Insight, said: “Although V2G technology is still in its early stages, it is poised to become a common feature of domestic charging setups.”
Briggs described V2G as a potential “game changer” for EV charging, saying that it will allow drivers to charge during off-peak hours for lower rates, and even sell energy back to the grid, significantly reducing their overall costs.
Additionally, Briggs predicted that V2G technology could generate £250 in gross annual income by 2040, with electricity costs expected to fall to 1.8p/kWh, offering over 60% savings compared to the 5.2p/kWh for non-smart meter charging.
According to its latest data from Cornwall Insight, the cost of charging your car is expected to reduce for all EV drivers between 2025 to 2030 and 2030 to 2040, as technologies are replaced by new renewable energy options.
Briggs added it is crucial to embrace smart meter charging as this will make the transition to EVs as “smooth and efficient as possible”.
“This not only saves EV drivers money on electricity bills, but also helps take the strain off the grid as EV adoption grows,” Briggs said.
“Helping to accommodate more renewable electricity generation and lower electricity costs and carbon consumption for everyone.”
Sara Highman, director of corporate affairs, Smart Energy GB, said: “This report clearly shows that, as smart meter-enabled technology becomes more commonplace, the financial and environmental benefits will only continue to grow.
“As well as enabling innovative reward schemes through smart charging, V2G charging and flexible tariffs, smart meters also ensure that households get accurate bills and greater visibility of their energy usage.”
