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New analysis suggests that electric vehicle (EV) drivers using innovative Vehicle-to-Grid (V2G) technology could slash their annual charging costs by as much as 70% while potentially earning an additional £320 per year by 2030. V2G technology allows EV owners to sell surplus energy back to the grid during peak demand, offering a significant financial benefit.
The study, published by leading analyst firm Cornwall Insight, highlights that drivers with V2G-enabled services could reduce their electricity costs to an astonishing 2.4p/kWh—compared to the average 9.8p/kWh paid by those without access to this tech.
Commissioned by the non-profit organisation Smart Energy GB, the report further emphasises that EV users equipped with smart meters can capitalise on time-of-use tariffs, giving them the opportunity to pay significantly lower off-peak rates. Sometimes, these rates can be up to six times cheaper than peak-time prices.
Though still in its early stages, V2G technology is poised to become a staple of domestic EV charging in the near future. The report, titled Turn on, Plug in, Check out, outlines how V2G will allow EV drivers to purchase electricity during periods of low demand and sell it back during high-demand times, maximising savings and efficiency.
"More and more customers are making the switch to EVs," said Jacob Briggs, a senior consultant at Cornwall Insight. "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."
The cost of charging electric vehicles (EVs) is projected to decrease steadily through 2040, driven by the expansion of renewable energy sources and the growing adoption of smart technologies. These advancements will enable EVs to tap into periods of surplus clean power when wholesale electricity prices are at their lowest.
However, even as electricity costs drop for all EV drivers, the report suggests that those utilising Vehicle-to-Grid (V2G) services will still have an added financial advantage. By selling excess power back to the grid, these motorists could continue to earn an estimated £250 per year in payments, capitalising on the fluctuating energy market.
Briggs claimed V2G tech has the potential to be a "game changer" for EV charging. "V2G makes EVs not only the sustainable choice but also strengthens their case as a cost-effective transportation option," he said.
Cornwall Insight further projected that if all-electric vehicles (EVs) incorporated in its system modelling were to adopt smart charging to sidestep peak demand periods, it could eliminate around 7GW of peak-time electricity demand by 2030. To put this into perspective, that's more than the total capacity of the Drax Power Station, which currently supplies power to over four million homes. This shift could significantly reduce strain on the grid while enhancing energy efficiency across the system.
"This report clearly demonstrates that, as smart meter-enabled technology becomes more commonplace, the financial and environmental benefits will only continue to grow," said Sara Higham, director of corporate affairs at Smart Energy GB. "As well as enabling innovative reward schemes through smart 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 installation."
This update follows significant efforts to speed up the adoption of emerging Vehicle-to-Grid (V2G) technologies across the UK.
For instance, in the summer, businesses with at least two electric vehicles (EVs) from brands like Genesis, Hyundai, Kia, or MG were invited to participate in a V2G workplace charging trial led by engineering solutions company Hanger19 and EV leasing company Drive Electric.
In February, Octopus Energy launched the Power Pack tariff, which it touted as the UK's first mass-market V2G offering. This tariff guarantees free charging for EV owners who plug in their vehicles for approximately six hours daily and stay within a monthly usage limit of 333kWh.
Likewise, OVO Energy has conducted a series of large-scale trials to showcase the potential of V2G technology and evaluate customer engagement with the service.
Cornwall Insight's report is timely, arriving amid growing interest in EVs. Recent research by CA Auto Finance, a subsidiary of CA Auto Bank, reveals that over half of UK drivers are now likely to make their next car an electric one, with that figure climbing to 75% among drivers aged 18 to 24.
In addition, many car manufacturers are well on their way to meeting the 2024 Zero Emission Vehicle (ZEV) Mandate, as EVs reached a record market share of over 22% for new cars sold in August.
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