Vehicle-to-grid (V2G) and vehicle-to-home (V2H) concepts treat EV batteries as flexible distributed storage. Instead of drawing solely from the grid, homes and networks can tap parked EVs to shave peaks, provide backup power, and support renewable integration. At Energy Solutions, analysts combine tariff data, battery cost curves, and pilot results to frame where V2G/V2H is economically meaningful and where the value proposition remains marginal.
V2G and V2H deployments can be grouped into several archetypes: simple backup systems for homes, tariff arbitrage and self-consumption boosters, and fully integrated grid services where fleets or aggregators bid flexibility into markets. Tariff design---especially TOU spreads and demand charges---largely determines the depth of the savings pool.
Bidirectional chargers, compatible vehicles, and regulatory clarity are prerequisites. In many jurisdictions, V2G remains confined to pilots because interconnection rules, metering standards, and EV warranties are still evolving. Meanwhile, V2H backup for homes---particularly when paired with rooftop solar---has begun to see commercial deployments in selected markets.
| Use Case | Primary Value Driver | Typical Hardware | Indicative Annual Savings/Revenue |
|---|---|---|---|
| Residential V2H backup + TOU shifting | Avoiding peak prices, backup during outages | 11---15 kW bidirectional home charger | USD 150---400/year on tariffs + resiliency value |
| Small fleet V2G with demand-charge reduction | Reducing peak demand charges for depots | Depot bidirectional chargers, EMS | USD 30---90/kW-year of flexible capacity |
| Aggregated V2G for grid services | Frequency regulation, capacity markets | Aggregated EVs via aggregators/DSOs | USD 70---150/kW-year (gross market value) |
Source: Energy Solutions Intelligence (2025); stylised value ranges before platform fees and taxes.
The economic signal for V2G/V2H is a balance between tariff differentials, grid-service revenues, and the cost of additional battery degradation. The table below summarises indicative economics for selected residential archetypes.
| Archetype | Tariff Type | Annual Energy Arbitrage Savings | Backup/Outage Value* | Estimated Added Battery Wear (10 years) |
|---|---|---|---|---|
| Urban TOU, modest solar | Evening peak TOU | USD 120---220/year | USD 30---80/year equivalent | ---2---4% of pack lifetime |
| Suburban with large solar array | Net billing / TOU | USD 180---350/year | USD 40---100/year equivalent | ---3---6% of pack lifetime |
*Backup value is an illustrative willingness-to-pay metric for outage mitigation.
Source: Energy Solutions modelling; excludes EV purchase CAPEX.
V2G rarely operates in isolation. In many cases, EV flexibility is stacked with rooftop solar, stationary batteries, and tariff optimisation. As seen in the solar-plus-storage economics analysis, stacking multiple value streams increases overall project IRR but introduces additional complexity in forecasting, control, and measurement and verification (M&V).
Source: Energy Solutions Intelligence (2025); stylised residential archetype.
A suburban pilot equipped households with bidirectional chargers, rooftop PV, and a simple home energy management system.
A city fleet of light-duty EVs participated in a demand-response and capacity programme through an aggregator.
Regional pathways for V2G are shaped by EV penetration, tariff design, and regulatory attention to flexibility. The US and parts of Europe are moving toward formal recognition of distributed resources, while Asian markets often focus on behind-the-meter resilience and pilot-scale flexibility.
Source: Energy Solutions scenarios; technical capability, not necessarily active V2G participation.
Despite strong theoretical value, several risks and constraints currently limit V2G/V2H scaling:
Programmes that explicitly model battery health and incorporate conservative cycling strategies, transparent remuneration, and simple user experience are better placed to move beyond pilot status.
By 2030, bidirectional-capable EVs are expected to represent a meaningful minority of the global fleet. However, only a subset of these vehicles will be enrolled in V2G/V2H programmes. The most likely near-term growth areas are V2H for resilience and fleet V2G for depots with predictable schedules.
As tariff design, grid codes, and OEM warranties converge, V2G and V2H may become standard features in broader flexibility portfolios, alongside stationary storage, smart thermostats, and demand response. Tools such as the Solar ROI & LCOE Tool and Demand Response Planner will be central in structuring offers and communicating value to EV owners and fleets.
Under moderate cycling strategies focused on evening peaks and occasional backup events, additional degradation is often estimated at 2---6% of pack lifetime over a decade. Aggressive daily cycling or poorly managed control strategies can materially increase this figure.
A compatible EV, a certified bidirectional charger, and appropriate metering and protection equipment are required. In some markets, additional interconnection approvals or relay schemes are needed to satisfy grid codes and islanding requirements.
Lenders often treat V2G revenues cautiously. Bankability improves when revenues come from long-term, rule-based programmes rather than short-term pilots, and when cycling profiles and warranty positions are clearly documented.
Analysts frequently use tariff and flexibility planners---such as demand response and bill analyzers---combined with EV battery cost models to quantify expected benefits, cycling, and long-term risk.