Smart charging solutions including vehicle-to-grid (V2G) charging could save EV drivers thousands of years and boost grid capacity but hurdles need to be overcome.

Owners of large EVs such as SUVs could save as much as £1,475 annually by utilising optimised flexible charging solutions

A new study by EY and Eurelectric on the benefits of smart vehicle charging solutions, such as time-of-use tariffs and selling surplus energy back to the grid, found that EV drivers in the UK could save more than £10,000 over seven years based on a large electric model.

The analysis found that owners of compact EVs could save more than £700 annually by charging their vehicles at off-peak times through time-of-use tariffs agreed by electricity suppliers, and selling energy back to the grid through bidirectional V2G and vehicle-to-home (V2H) charging.

Meanwhile, owners of family EVs, including medium-sized cars such as saloons, could save more than £1,000 per year, while the owners of large EVs such as SUVs could save as much as £1,475 annually by utilising optimised flexible charging solutions.

The study also indicates significant potential for energy storage, revealing that based on projections around EV uptake and battery size, EVs in the UK could supply the equivalent of up to 24 terawatt hours (TWh) of the nation’s battery capacity by 2030 back to the grid. This is equal to 7.5% of the UK’s overall electricity demand in 2023, according to government figures, and could mitigate energy usage at peak charging times. However, this is contingent on all EVs having the capability to send energy back to the grid, and consumers having the knowhow to optimally utilise V2G technologies.

EY said the study provides a compelling case around how V2G and smart charging solutions could enable consumers and electricity transmission and distribution grids to collaborate, helping to reduce EV running costs and optimise grid capacity.

But it warned that the UK has hurdles to overcome to unlock full potential of bidirectional charging, adding that V2G infrastructure remains relatively sparse and expensive, and will need to be ramped up if a smooth and successful EV transition is to materialise.

EY also said the UK is still navigating challenges associated with the double taxation of energy storage, which currently remains a significant barrier for the progress and deployment of V2G and bidirectional charging. Other European countries, including Spain and Sweden, have already eliminated this tax, but it currently remains a hurdle for the UK.

The study also highlights the need for the value proposition of EVs to be carefully considered, beyond just financial costs. For example, robust business models that demonstrate the financial viability of V2G are essential, and for consumers, solutions need to be simple to use, with clear and accessible benefits.

Lee Downham, energy and resources lead at EY in the UK, said: “With the UK’s EV market share still not quite keeping pace with regulatory requirements, this study highlights the critical role that smart charging could play in helping more households make the switch to an EV. Furthermore, with storage of clean energy increasingly a limiting factor in the UK achieving its net zero ambitions, technologies like this could provide essential access to the significant capacity that EVs provide to the grid.”