Vehicle-to-Grid (V2G) Technology: Revolutionizing Energy in 2025

A typical EV on the road in 2025 carries a 60-100 kWh battery - more than enough to power an average home for 1-3 days. Vehicle-to-Grid (V2G) and Vehicle-to-Home (V2H) technologies turn parked EVs into flexible energy assets: backing up houses during outages, supporting the grid during peaks, and earning revenue in capacity markets. The V2G technology market is estimated at $5.87B in 2025 and projected to reach $49.75B by 2034, as grid operators pursue flexibility without building only stationary storage. At Energy Solutions, we've analyzed V2G pilots in Europe, North America and Japan. This guide explains how V2G works, what equipment you need, and where it creates measurable value.

Market Size & Growth Projections

The rapid scaling of bidirectional charging is closely tied to grid flexibility needs and policy frameworks. Recent market estimates place the V2G technology market at $5.87B in 2025, with forecasts reaching $49.75B by 2034 (and higher estimates in some press releases depending on scope and methodology).

Efficiency & Economic Benefits

V2G is increasingly framed as a cost-optimization tool: it can reduce the need for incremental peakers and large stationary batteries by leveraging already-installed EV capacity.

• System cost impact: Studies cited in European coverage suggest V2G could reduce annual energy system costs by about EUR 22B/year in Europe.
• Consumer bill savings: Additional analyses indicate potential savings ranging from 4% to 52% of annual electricity bills depending on tariffs, driving patterns, and program design.

Sources (copyable):
https://balkangreenenergynews.com/v2g-technology-can-reduce-energy-system-costs-by-eur-22-billion-per-year/
https://www.ey.com/en_nl/newsroom/2025/03/smart-charging-and-v2g-critical-for-cost-savings-grid-stability-and-renewables-integration
https://mobilityhouse-energy.com/int_en/knowledge-center/article/v2g-new-studies-2025-europe

Main Challenges: Standardization, Costs & Battery Life

Real-world deployment is still constrained by:

• Standardization & interoperability gaps: Vehicle, charger, and grid software compatibility is not yet universal.
• Higher infrastructure cost: Bidirectional chargers and installation requirements can be materially higher than one-way smart charging.
• Battery degradation concerns: Customers and OEMs remain cautious about added cycling and warranty terms.
• Incentives & market access: Without clear tariffs and aggregator participation rules, customer ROI is uncertain.

Sources (copyable):
https://www.rootsanalysis.com/vehicle-to-grid-v2g-market
https://www.sciencedirect.com/science/article/abs/pii/S2352152X24045134
https://mobilityhouse-energy.com/int_en/knowledge-center/article/v2g-new-studies-2025-europe

How V2G & V2H Actually Work

V2G is bidirectional charging: energy flows from the grid to the vehicle when you charge, and back from the vehicle to the grid (or your home) when dispatched.

• V2H (Vehicle-to-Home): EV powers your home during outages or to avoid peak prices.
• V2B (Vehicle-to-Building): Similar concept for commercial buildings.
• V2G (Vehicle-to-Grid): Aggregated EVs provide grid services like capacity and frequency support.

Hardware & Standards: CHAdeMO, CCS, ISO 15118

As of 2025, bidirectional support is still fragmented:

• CHAdeMO: Longest history with V2G; used by Nissan LEAF and some Japanese models.
• CCS with ISO 15118-20: Emerging standard in Europe and North America for AC & DC bidirectional.
• Proprietary systems: Ford, Hyundai/Kia and others offer V2H/V2L with brand-specific hardware.

Revenue Potential: V2G vs Smart Charging

Smart charging (one-way) already offers savings by shifting charging to off-peak hours. V2G can add extra value, but how much?

Battery Wear & Cycle Life Impact

Extra cycling from V2G can accelerate degradation - but the impact depends on how often and how deeply you cycle:

• Shallow, partial cycles (10-20% depth): Lower impact on lifetime.
• Frequent deep cycles (>60% depth): Shorten life more dramatically.

For many drivers, daily V2G operation might add the equivalent of 50-150 full cycles per year. For modern LFP or NMC packs rated at 2,000-4,000 cycles, this can be manageable if compensated by revenue, but OEM warranty policies are still evolving.

Best-Fit Use Cases: Homes, Fleets, Campuses

• Homes with backup needs: V2H can replace or supplement stationary batteries - especially where outages are infrequent but long.
• Workplace & depot fleets: Predictable schedules and parking windows simplify aggregation.
• University & corporate campuses: Employee EVs plus site batteries form mini-VPPs.