Technology that enables electric vehicle (EV) users to sell their electricity back to the grid when demand is high could reduce EV drivers’ wholesale electricity charging costs by 70% annually and earn them an average of £320 per year by 2030.
‘Vehicle to Grid’ (V2G) technology allows drivers to both buy and sell electricity to and from the grid. They can maximise savings by buying power during low-demand periods and selling it when prices are high.
The data from a new report by Cornwall Insight, commissioned by Smart Energy GB – Turn on, Plug in, Check out – reveals that EV drivers who adopt a V2G service could lower their wholesale electricity costs to just 2.4p/kWh, compared to the 9.8p/kWh paid by those without smart charging.
Although V2G technology is still in its early stages, it is poised to become a common feature of domestic charging setups. Looking further ahead to 2040, while electricity costs are forecast to come down, V2G could still generate £250 in gross annual revenue. Costs are expected to reduce to 1.8p/kWh, offering over 60% savings compared to the 5.2p/kWh for non-smart meter charging.
Figure 1: Average annual net EV wholesale electricity cost for non-smart and V2G categories, per household in p/kWh
Source: Cornwall Insight
- Due to the relatively early-stage nature of V2G, we do not include any households within the V2G category in our modelling for the 2025 snapshot year.
The cost of charging your car is expected to reduce for all EV drivers between 2025 to 2030 and 2030 to 2040 as technologies that use higher cost fuels are displaced by new renewables, cutting the cost of electricity.
Jacob Briggs, Senior Consultant, Cornwall Insight said:
“More and more customers are making the switch to EVs. To make the transition as smooth and efficient as possible, embracing smart meter enabled charging is crucial. This not only saves EV drivers money on electricity bills, but also helps take the strain off the grid as EV adoption grows. Helping to accommodate more renewable electricity generation and lower electricity costs and carbon consumption for everyone.
“Vehicle to Grid (V2G) technology has the potential to be a game changer for EV charging, allowing drivers to charge during off-peak hours for lower rates, and even sell energy back to the grid, significantly reducing their overall costs. V2G makes EVs not only the sustainable choice, but also strengthens their case as a cost-effective transportation option.”
Sara Higham, Director of Corporate Affairs at Smart Energy GB, said:
“This report clearly demonstrates 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, vehicle to grid charging (V2G) and flexible tariffs, smart meters also ensure that households get accurate bills and greater visibility of their energy usage. Drivers who want to maximise the benefits of their electric vehicle should contact their energy supplier now to request a smart meter installatio
