Homeowners could soon see their energy bills slashed by thousands of dollars a year if they use electric cars to power the lights.
The Australian Renewable Energy Agency (ARENA) announced last month that it would invest $3.2 million in a trial that would transform electric vehicles (EVs) into “batteries on wheels” that plug into the grid.
This vehicle-to-grid technology, also known as V2G, will essentially allow electric cars to act as a substitute for costly solar energy batteries, feeding energy back into the grid and supplementing your home’s power supply once the sun goes down.
Headed up by electricity provider Amber Electric, the $7.7 million test will see 100 smart chargers and 50 vehicle-to-grid chargers installed in residential homes for over 1000 customers across NSW, Victoria, Queensland, South Australia and the ACT in mid-2025.
The announcement comes only months after a report from the agency found that transforming EVs into storage batteries for renewable energy and feeding it back into the grid could net homeowners as much as $12,000 a year in NSW.
Bii-directional chargers needed to support the grid connections currently cost homeowners around $10,000 to install, meaning the system could potentially pay for itself within 12 months.
If successful, this would make EV batteries one of the lowest-cost energy solutions on the market.
The study, prepared by consultancy Energeia, also found that using V2G technology was unlikely to significantly impact a driver’s experience or degrade EV batteries.
Amber co-CEO Dan Adams said the “groundbreaking” tech has the potential to revolutionise the Aussie energy sector.
“This technology represents a transformative leap for energy storage in Australia, and the energy system as a whole,” said Adams.
“By integrating electric vehicles with the grid and the wholesale energy market, we can reduce costs for consumers whilst accelerating the transition to renewable energy.”
“Our customers will be able to directly compete with big coal and gas generators just by smart charging and discharging their EV battery. This innovation not only strengthens our energy infrastructure but also aligns with a commitment to a sustainable future.”
The new future of renewable energy
While the concept is nothing new in the global renewables sector, the trial will be the largest test of the technology in Aussie homes and could offer homeowners from every corner of the country more options when it comes to saving on power.
Currently, South Australia is the only state that allows the use of V2G in homes after a trial by SA Power Networks for Nissan and Mitsubishi cars in 2022.
ARENA chief executive Darren Miller said the trial could also provide useful insights into future policies and a larger rollout of vehicle-to-grid technology that could help stabilise the national network.
“With accelerating uptake of electric vehicles in Australia, this project will develop and demonstrate new ways for consumers to unlock value from their consumer energy resources and facilitate greater use of renewable energy,” added Miller.
