UK Draft Rules Assign £4,000 Value to Bidirectional EV Tech
A closed government consultation proposes letting carmakers trade credits for installing V2G hardware, a move critics say prioritizes manufacturer profits over actual driver usage.
By Ella Cox ·
British carmakers could receive a financial credit worth approximately £4,000 for each electric vehicle equipped with vehicle-to-grid technology, according to a government consultation that closed on Friday. This proposal forms part of a wider review of the zero-emission vehicle mandate, which aims to adjust sales targets for new cars.
The mechanism would allow manufacturers to earn a credit for selling cars with bidirectional charging capabilities. These credits would then offset the cost of selling additional petrol models, reducing the risk of fines if firms miss their zero-emission targets. Ministers view the technology as a way to stabilize the electrical grid during periods of high demand when wind and solar generation are low.
Critics argue the plan rewards installation rather than usage. Ben Nelmes, chief executive of the thinktank New AutoMotive, stated that carmakers should only be rewarded if the technology is actually used, not just fitted. He noted that the proposed credits would hand manufacturers thousands of pounds per car for kit that costs a few hundred pounds. Nelmes warned that few drivers own the expensive chargers required to utilize the system, meaning shareholders may benefit more than billpayers.
The Electric Vehicle Association England also raised concerns about the timing. Vicky Edmonds, the group's chief executive, said it is too early to grant manufacturers credits for a technology not yet tested at scale. She emphasized that millions of drivers are still focused on immediate costs and daily needs, rather than advanced grid services. The association represents drivers who are currently a small fraction of the total using these storage technologies.
The government intends to cut electric vehicle sales targets under the current mandate. Environmental groups anticipate that these changes could result in an additional 147 million tonnes of carbon emissions by 2050. The proposed V2G credits would provide manufacturers with a buffer to sell more polluting models in the near term while the transition progresses.
National Energy System Operator forecasts that V2G vehicles could supply 1.2 gigawatts of power on demand by 2030. By 2050, this capacity could reach 41 gigawatts, a volume sufficient to meet more than a quarter of peak energy demand in Great Britain. The data suggests a substantial potential role for these vehicles in balancing the grid, though current adoption remains low.
Some drivers already sell electricity back to the grid through companies such as Octopus Energy in the UK. The firm claims its service could save drivers £620 a year. Smart charging tariffs also exist to encourage charging during periods of low cost, but these do not require the specific hardware proposed in the new credit scheme.
Source: The Guardian
