What is vehicle-to-grid charging? A company car and fleet guide

Whether you’re a company car driver or a fleet manager, cutting the daily costs of driving is always near the top of your agenda. 

Modern 100% electric vehicles such as the Nissan LEAF and the e-NV200 van offer a wealth of benefits that cut the cost of electric motoring compared to petrol and diesel – including zero road tax, zero congestion charges, reduced servicing costs, Government tax subsidies and purchase incentives.^[1]  

Nissan has now taken the cost-savings of electric driving a step further, with vehicle-to-grid (V2G) technology that lets you be part of a wider energy-efficient ecosystem, while also helping you to cut your energy costs. 

Put simply, V2G feeds surplus energy from your electric vehicle’s battery back into your building or the grid during periods of high demand, before charging your car back up again when rates are lower off-peak. This could lead to net cost savings, through reduced electric vehicle charging costs.

Currently, Nissan is the only mass-production manufacturer in the UK to provide this two-way charging feature on fully electric vehicles such as the 100% electric Nissan LEAF and e-NV200 van.^[2] Nissan has forecast that vehicle-to-grid charging could generate benefits of between £700 and £1,250 per vehicle per year. The technology could reduce up to 60 tonnes of CO2 per year per electric vehicle, while saving the economy up to £885m per year.^[3] 

Here is your guide to vehicle-to-grid technology, and how it can help you.

Learn more about Vehicle to Grid technology at nissan.co.uk

How can vehicle-to-grid help company car drivers charging at home?

Vehicle-to-grid charging will be ideal for company car drivers who charge at home. Unlike a standard one-way home charger, V2G chargers use two-way technology that can both import and export charge to and from your vehicle.

Energy providers and programme operators – including Octopus Energy, OVO Energy and CrowdCharge (Drive Electric) – are working on various trial programmes to learn about the true financial and environmental benefits of V2G for Nissan LEAF drivers charging at home. 

The idea is to keep V2G as easy as possible. Simply plug your Nissan LEAF in on your return home from work every day, and your energy provider will determine how much charge is left in the car, and the current demand on the grid whilst taking into consideration your own energy and charging needs.

If electricity demand and prices are high – say, in the evenings when people are returning home from work – power will be discharged from your vehicle’s battery to power homes and businesses or returned to the grid. Then, when demand is much lower (typically overnight, or when renewable sources are more in use), your provider will charge your electric car at cheaper rates. 

So, what does this mean for individual company car drivers? Well, the current combination of electric vehicle and home charging grants, benefit-in-kind (BIK) tax incentives and reduced vehicle excise duty (VED) road tax and servicing costs already potentially saves you around £12,000 over three years compared to petrol and diesel variants.^[5] 

A V2G programme, with significant cost savings of selling energy back to the grid to cut your home energy and home charging bills, will increase the financial benefits of owning an electric vehicle for company car drivers – as well as helping to reduce our collective CO2 emissions and our impact on the planet.

How can vehicle-to-grid charging help fleet managers?

Electric vehicles, such as the 100% electric Nissan LEAF and e-NV200 van, are already a popular choice with fleet managers, thanks to their reduced servicing and maintenance costs versus petrol and diesel models. The additional benefits of reduced tax, zero-emissions while driving and government grants make electric vehicles the perfect way to cut costs and enhance your company’s eco credentials. Now, with vehicle-to-grid technology, the deal has only gotten sweeter.

Nissan is working closely with E.ON as part of a large-scale V2G commercialisation programme for Nissan electric vehicle fleets – co-funded by the Department for Business Energy and Industrial Strategy (BEIS) and the Office for Zero Emission Vehicles (OZEV) in partnership with Innovate UK. The project will look to demonstrate how storing and sharing electricity in fleet vehicles’ batteries can generate additional revenue for participating companies, as well as supporting the power grid.

A recently published white paper supports the case that V2G technology could unlock substantial overall savings of between £412-£883m over the next decade.^[3] The study found that V2G-enabled fleets have the potential to cut overall power system CO2 emissions to as low as 243g of CO2/km, while the cost savings per 100%-electric fleet vehicle could be up to £12,000 per year. 

There’s also a CO2 reduction of 60 tonnes per year for electricity system operation through more efficient provision of grid services.^[3] That doesn’t just make better sense for businesses and the broader economy; it’s also better for the planet compared to petrol and diesel.

How can I start using vehicle-to-grid technology?

A number of organisations are active in vehicle-to-grid commercialisation programmes exclusively with Nissan – some of which have completed their recruitment phase. At time of publication, the E.ON programme is still open for recruitment for back-to-base company car fleets, while the Octopus Powerloop project is available for those looking to get a Nissan LEAF through personal contract hire.

Octopus Electric Vehicles is researching the domestic financial, environmental and government-influencing benefits of V2G technology. The project is currently being run in London, the South-East and East of England. Terms and conditions apply. Find out more: https://www.octopusev.com/powerloop

E.ON is offering vehicle-to-grid to back to base fleet users the equivalent of up to 10,000 electric vehicle driving miles per charger per year, carbon footprint reduction and up to 50% of the cost of V2G chargers, maintenance and installation covered. Terms and conditions apply visit: https://www.eonenergy.com/v2g.html

OVO Energy’s V2G programme with Kaluza is now closed for recruitment, but information on the activity and its findings can be found at: https://www.cenex.co.uk/projects-case-studies/sciurus/

The Electric Nation programme run by CrowdCharge is the only V2G project working with multiple energy suppliers to represent “the street of the future” and are also incorporating home solar generation to further harness the benefits of V2G. Recruitment is now closed but you can follow the project at: https://electricnation.org.uk/

Learn more about Vehicle to Grid technology at nissan.co.uk

^[1] This is subject to individual circumstances. Nissan Motor (GB) Ltd does not offer tax advice and recommends that all drivers check the HMRC website for guidance or seek independent tax advice.

^[2] Vehicle-to-grid (V2G) charging feature standard on all Nissan LEAF grades. Standard on e-NV200 van Acenta & Tekna grades, optional on Visia.

^[3] For more information, visit https://www.eonenergy.com/content/dam/eon-energy-com/Files/vehicle-to-grid/The%20Drive%20Towards%20A%20Low-Carbon%20Grid%20Whitepaper.pdf

^[4] For more information visit: https://www.octopusev.com/powerloop

^[5] Total savings on Nissan LEAF 40kWh N-Connecta vs typical UK best-selling hatchback with 1.5-litre turbo petrol engine (automatic transmission for 10,000 miles over three years = £515 road tax + £9,623 BIK + £2,067 fuel - £529 charger installation + £240 servicing = £11,916. Please seek independent tax advice in relation to BIK.

^[6] Powerloop is funded by the Department for Business, Energy and Industrial Strategy (BEIS) and the Office for Zero Emission Vehicles (OZEV), with Innovate UK acting as delivery partner.