Electrical automobiles (EVs) are more and more being seen not simply as a mode of transport, however as potential monetary belongings, due to the burgeoning Automobile-to-Grid (V2G) expertise. This modern system permits EVs to behave as “cellular energy banks,” discharging electrical energy again into the grid throughout peak demand, thereby supporting grid stability and providing monetary advantages to automobile house owners. Nonetheless, widespread adoption hinges on addressing key considerations, notably relating to battery longevity.
A current survey by The Paper Institute from Could 26-28, 2025, explored a pilot V2G charging and battery swap station mission. Researchers engaged with automotive firms, battery producers, and EV house owners to know the present panorama and future potential of V2G. The findings spotlight that educating the general public about V2G and making certain proprietor advantages whereas assuaging battery life considerations are paramount for its profitable implementation.
Financial beneficial properties via peak-valley electrical energy pricing
Some of the compelling incentives for EV house owners to embrace V2G is the chance to revenue from peak-valley electrical energy value variations. Nio, a outstanding EV producer, is taking part in a V2G pilot mission in Shanghai, which incorporates residential and park charging piles and bidirectional battery swap stations.
On Could 26, 2025, a Nio automobile was noticed discharging electrical energy on the V2G pilot web site. Established in early 2024, this web site options six V2G-enabled Nio charging piles. Xiang Chen, Nio’s Head of V2G, defined that web site operators incentivise house owners to discharge saved vitality throughout peak electrical energy value hours, benefiting each the grid by lowering peak load and the workplace park by reducing electrical energy prices.
Xia Yu, a 36-year-old automotive engineer and Nio proprietor, has been actively utilizing V2G since late 2022. He costs his EV at dwelling throughout off-peak hours after which discharges it on the workplace park’s V2G station throughout peak hours. Xia Yu calculates that he earns roughly 500 yuan (70 USD) per 30 days by leveraging the worth distinction, having discharged a cumulative 15,610 kWh.
Equally, Wang Wenjun, a 32-year-old Avatr EV proprietor, lately upgraded his non-public charging pile to a bidirectional meter, turning into the primary consumer in Shanghai to finish the State Grid’s bidirectional meter connection. On Could 14, 2025, his EV provided 0.43 kWh to the grid for testing. He anticipates that future earnings from V2G will additional cut back his automobile working prices.
Addressing battery life considerations
Whereas the monetary advantages are clear, EV house owners’ major concern stays the potential affect of frequent charging and discharging on battery lifespan. Xia Yu famous that whereas he recommends V2G to others, older generations battle to understand the idea, and plenty of friends fear about battery degradation.
A number of methods are being explored to mitigate these considerations:
- Battery-as-a-Service (BaaS) and battery swapping: Nio’s battery swap mannequin, the place batteries are leased and include a lifetime guarantee, considerably alleviates proprietor considerations about battery high quality and degradation, encouraging V2G participation. Nio has already established three bidirectional battery swap stations in Shanghai this yr. These stations can immediately regulate charging and discharging energy and incentivise house owners to carry out reverse discharging via reward factors.
- Enhanced understanding of battery expertise: Xia Yu, regardless of benefiting from Nio’s swap mannequin, has thought-about eventualities for non-swappable EVs. He estimates that his V2G utilization, discharging 15,610 kWh, equates to roughly 300 battery cycles over 5 to 6 years. Wang Wenjun emphasised that battery kind is essential, stating that ternary lithium batteries can usually final the automobile’s lifetime. A consultant from an automotive battery firm famous that whereas battery security and lifespan are important, over-guaranteeing battery life is perhaps counterproductive, as batteries must be utilised to their full potential. Ternary lithium batteries have a cycle lifetime of 1,100 to 1,500 occasions, whereas lithium iron phosphate batteries can exceed 3,500 cycles, with potential for even longer lifespans via system enhancements.
- Automobile alternative frequency: The rising frequency of auto alternative additionally reduces battery life considerations. Wang Wenjun noticed that automobiles are actually typically changed each three to 4 years, just like cell phones. Mr. Track, an EV proprietor with two electrical automobiles, participates in V2G and isn’t overly involved about battery life, given his anticipated three to four-year alternative cycle. He famous that house owners who maintain their automobiles for 8-10 years usually tend to fear about battery longevity.
From pilot to widespread adoption: a user-centric strategy
Public consciousness of V2G’s reverse discharge operate remains to be creating. The surveyed EV house owners, who already strongly perceive associated fields, have been extra receptive to V2G. As an illustration, Xia Yu, an automotive engineer, had prior expertise with solar energy within the US, and Wang Wenjun, a non-public residence designer, often works with photo voltaic installations and has even used his EV to briefly energy his rural dwelling.
Insurance policies should stability proprietor advantages with battery longevity considerations to encourage broader participation, utilizing market mechanisms to drive engagement. In the long run, V2G goals to unlock the worth of EVs as “cellular vitality storage.” Xiang Chen expressed optimism that Shanghai’s future insurance policies and mechanisms will pave the best way for a quicker and extra optimum industrial breakthrough for V2G, permitting each cost and discharge to contribute to vitality worth distribution. He concluded, “At that time, electrical automobiles will doubtless develop into a monetary product.”
Supply: The Paper, QQ
