EVs May Slash Energy Bills for All, New Model Reveals
Government rebates that boost the number of EVs feeding energy back into the grid would lower power prices for all Australians, according to new modelling by the Electric Vehicle Council.
Vehicle-to-grid (V2G) technology, known as bidirectional EV charging, allows energy stored in EVs, which are ‘giant batteries on wheels’, to be sent to the energy grid.
The modelling shows that over five years, a $3,000 government rebate towards a V2G charger would create more than $4,500 in downward pressure on electricity bills across Australia.
That means for every dollar spent supporting V2G, $1.50 comes back through lower wholesale prices and a reduced need for additional capital expenditure on power infrastructure.
Additionally, an EV owner who participates in V2G could earn around $1,000 per year for exporting power from their car to the grid when demand is high.
The EVC proposes the federal government include V2G chargers in its $2.3 billion home battery program to provide more value for money to the taxpayer.
The EVC estimates that 600,000 EVs doing V2G could match the output of NSW’s Eraring power station operating at full capacity. With the federal government’s initiative, more Australians can get onto V2G quicker and we can shut down coal fired power stations sooner.
Electric Vehicle Council CEO Julie Delvecchio said V2G has huge potential to make electricity cheaper for everyone and help stabilise the energy grid.
“Just as Australia became a rapid global leader in rooftop solar, we have the opportunity now to lead the charge in vehicle-to-grid uptake,” Ms Delvecchio said.
“EVs can store up to five times more energy than a typical home battery. That’s a huge untapped resource sitting in driveways and with the right technology, we can use it to save money and support the grid, and make the whole system more reliable for everyone. V2G enables EV owners to feed stored power back into the grid during periods of high demand, when electricity is most expensive and vulnerable to disruptions like blackouts.
“V2G allows EV owners to drive down power bills not just for themselves but for all Australians. EV owners could earn $1,000 annually by sending energy from their electric vehicle to the grid. Over five years, they can contribute more than $4,500 in broader community benefits that help reduce energy bills for everyone.
“Unlocking this energy from EVs brings huge financial benefits that are in the national interest. We need to encourage more people to use V2G chargers, which cost about the same as the average home battery at around $10,000.
“We’d like to see the Federal Government roll out a $3,000 rebate for V2G chargers so that more Australians can use this technology to generate lower power prices for themselves and others.
“Australia is home to more than 350,000 EVs, and a high proportion live in the middle and outer suburbs. With some EVs now around $30,000, the upfront cost is making it more affordable for more Australians to make the switch to cheaper-to-run cars. V2G unlocks the full benefit of EV uptake in a way that helps everyone – EV owner or not.
“A lesson we learnt from rooftop solar is that support from the government during the early years of adoption is essential to build momentum. Over time V2G chargers will become increasingly affordable and more Australians will embrace this technology. But to get the ball rolling a rebate would be enormously constructive.
“V2G offers more than lower energy bills, it can also improve the resilience of the energy system especially during severe weather events. While V2G is an emerging technology in Australia, a small group of early adopters have exported power to help stabilise the grid.”
EVC ask: