Carmakers could earn bonus ZEV mandate credits for selling V2G-capable EVs

The UK government is considering introducing bonus ZEV mandate credits for manufacturers that fit V2G tech to their new EVs

In a push to make electric vehicles an even more integral part of the energy ecosystem, with the potential benefit of increasing the UK’s energy independence, the government is reportedly considering changes to the ZEV mandate which would see car manufacturers rewarded with extra credits towards compliance when they sell EVs with vehicle-to-grid (V2G) capability.

Bonus V2G credits floated as ZEV mandate consultation ends

The idea, originally reported by The Guardian, came to light after the two month consultation on the ZEV mandate closed earlier this month. Under the current rules, manufacturers earn one credit for every fully electric car they register, and the share of zero emission sales they must hit to avoid fines rises each year, eventually reaching 100% of new car sales by 2035.

V2G technology can allow an electric car to charge overnight when electricity is at its cheapest and least demanded, then discharge that energy from its batteries back into the grid when energy demand is high. This has several potential benefits. Owners can earn money by selling energy back to the grid, further cutting the cost of EV motoring. Meanwhile, in a well-managed national system, the technology can also ease strain on the grid and make better use of renewable energy generation.

In practice however, V2G uptake has remained very limited in the UK so far. While an increasing number of EVs support the technology in theory, the actual home energy tariffs that support the technology remain rare. Octopus Energy’s Power Pack was the first V2G tariff to be introduced in the UK, but it remains limited to just one new model, the BYD Dolphin, and must be combined with a V2G-capable Zaptec Pro home charger.

Therefore, it remains to be seen whether such an incentive would actually increase V2G usage in the UK, or just result in car makers making sure their cars go out the showroom doors V2G-ready to get that extra ZEV mandate credit. Another criticism of the proposal is that by giving manufacturers one extra credit for V2G compatibility, it would in theory allow them to sell one more petrol or diesel powered car alongside. This could slow down the UK’s electrification progress.