New vehicle-to-grid (V2G) standards introduced by the federal government in late 2023 will enable electric vehicle (EV) owners in Australia to power their homes using their vehicles and export electricity to the grid during periods of peak demand.

These standards are intended to provide consumers with more control over their energy usage, reduce electricity bills, and contribute to grid stability.

With EV sales in Australia projected to reach two million by 2030, energy exported through V2G could be sufficient to power approximately 14 million air conditioning units rated at 7 kW each.

V2G technology may also assist in managing the increasing variability of an electricity system that is transitioning towards decentralisation and the replacement of fossil-fuelled generation with solar and wind energy sources.

However, implementing V2G on a large scale presents several challenges. It requires the development of a new energy ecosystem involving automotive original equipment manufacturers (OEMs), charging hardware providers, utilities, software developers, and regulators to address system-wide complexity and adjust energy market operations.

Consumers are a key component of this system and are important to the viability of both V2G and future vehicle-to-everything (V2X) models. An EV charging service that does not address user needs is unlikely to be effective.

At present, the concept of using an EV battery to supply electricity to a home or to export electricity back to the grid remains relatively unfamiliar to the broader public. While awareness is increasing in the automotive and utility sectors, and despite growth in the residential battery market in Australia, further consumer education is required.

Clarification of both the function and the purpose of this technology is necessary. Although there is general support for the energy transition among Australian consumers, the primary concerns continue to be affordability and reliability.

While there is support for cleaner energy, many are not willing to incur higher costs or accept reduced reliability during the transition.

In the United Kingdom, OVO Energy conducted a large-scale V2G trial and concluded that financial incentives were the main reason for participant involvement. Given the current economic context in Australia, including increased living costs and energy prices, financial benefits are likely to be a key factor in consumer participation.

For a V2G programme to be effective, it must align with consumer priorities by providing incentives that encourage participation and demonstrate measurable value. Two areas of focus are required: presenting rewards in a clear and accessible manner, and implementing education initiatives.

Consistent and clear communication of rewards and benefits is necessary due to the complexity of the technology. Trust and understanding are important for any future adoption of V2G in Australia.

It is necessary to address concerns and misunderstandings regarding V2G technology and the software it relies upon. Confidence in the technology is required for consumers to participate effectively.

For example, a 'charge path' feature in the EV charging application could allow users to view the vehicle's charging schedule, helping to build confidence in the software's optimisation process.

In one trial, providing users with information about how the software worked and the consequences of manual overrides led to a 141% increase in flexible charging hours, with improved cost efficiency. Systems designed for ease of use may contribute to higher adoption rates and facilitate the transition to V2G functionality.

Currently, an EV user typically engages with multiple stakeholders to access the full range of EV services.

This complexity may discourage efforts to optimise and monetise energy usage. Streamlining this process through coordination among Australia's automotive, government, and energy sectors could help maintain public interest.

Collaboration is also necessary for developing and implementing national V2G standards. Each V2G-enabled charger should be capable of importing electricity during periods of high renewable generation and exporting it during peak demand.

Policymakers and regulators will need to consider the role of V2G and V2X technologies in addressing increased electricity demand and provide support for deployment. This includes a unified framework for data sharing and communication, as well as upgrades to grid infrastructure to manage bidirectional energy flows.

It is not necessary to completely revise the existing regulatory framework. With cooperation from industry stakeholders, current rules and policies - such as those applied to behind-the-metre storage and backup generators - can be extended to include V2G systems.

When integrated with artificial intelligence-based systems that use real-time signals (such as wholesale electricity prices, weather forecasts, and grid data), V2G can be deployed in a timely and efficient manner.

The development of V2G will depend on consumer education and participation. By focusing on practical usability, removing unnecessary complexity, and providing straightforward value propositions, it is possible to expand the role of V2G in Australia.

This may result in lower energy costs and increased energy independence for users, as well as changes in how the broader electricity grid is managed.

Analysis of early implementations may offer insights that inform future deployment strategies.