The UK government is reviewing potential incentives for automobile manufacturers to equip electric vehicles with vehicle-to-grid (V2G) technology as part of its zero-emission vehicle (ZEV) mandate review. The technology enables drivers to charge their vehicles during periods of low electricity prices overnight and subsequently return stored power to the electrical grid during high-demand periods, or supply power directly to their homes through vehicle-to-home (V2H) capabilities.
Under the proposed system, manufacturers could earn credits for selling vehicles equipped with bidirectional charging technology. These credits would allow them to offset their ZEV obligations and sell additional petrol-powered vehicles without facing penalties for missing emissions targets. Industry observers note that the technology could help stabilize the grid during periods when renewable energy generation from wind and solar sources falls below electricity demand, reducing reliance on conventional gas power plants to fill supply gaps.
Environmental advocates and electric vehicle industry representatives have raised concerns about the proposal. Critics argue that manufacturers would receive substantial financial rewards—estimated at approximately £4,000 per vehicle in credits—for technology that costs only a few hundred pounds to install, while most drivers lack access to the expensive charging infrastructure required to use V2G capabilities. There is additional concern that the credit system could inadvertently incentivize increased sales of conventional combustion vehicles during the transition period.
Currently, V2G adoption remains limited among drivers, though some companies including Octopus Energy in the UK and manufacturers in other European countries have begun offering services that allow vehicle owners to earn revenue by supplying power back to the grid. According to the National Energy System Operator, widespread V2G adoption could theoretically provide approximately 1.2 gigawatts of on-demand power by 2030, with potential expansion to 41 gigawatts by 2050—enough to satisfy over one-quarter of peak electricity demand.
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