SA puts $5m to fast track electric vehicles as home batteries on wheels

Electric vehicles are growing in popularity as prices come down and a charging network evolves. Now, SA will help fund testing on whether the vehicles can power homes too.

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Taxpayers will contribute $4.9m as the first step towards an electric vehicle plan being developed by the State Government.

The plan, due to be published before the end of this year, will support using electric vehicles as batteries to power homes at night after the vehicle has been charged during the day.

The funds also will encourage private investment in building electric vehicle charging stations across the state.

The Electric Vehicle Council, which is liaising on the plan, said the industry was keen to invest.

Early estimates were that a household could earn more than $1000/year by using its electric vehicle as a battery and selling energy or ancillary services back to the grid in addition to powering the home.

“Part of the program in Adelaide will be to put the proof to that,” council chief executive Behyad Jafari said.

“It will be tantalising to customers because they can make money from their car.

“Car companies are investing in this not just because it’s a cool engineering trick but because there’s a benefit for the car buyer.”

The Nissan Leaf has vehicle-to-grid capability.

Electric vehicle batteries typically have three or more times the capacity of a home battery coupled to a solar system and could power the car for commuting plus run the home and sell to the grid.

Energy and Mining Minister Dan van Holst Pellekaan said a smart approach to the incoming wave of electric vehicles would deliver broad benefits.

“What’s clear is that as electric vehicles become more affordable, smart charging can reduce drivers’ fuel bills and reduce the cost of power for all South Australians,” he said.

“By charging at low demand and at sunny or windy times, electric vehicles will allow us drive down wholesale electricity prices, reducing the cost of a unit of power for all South Australians.

“A key action in the plan will be to support electric vehicles being used as mobile batteries which can be filled at low electricity demand times of the day and discharged at peak times.

“Discharge can occur the car into the home or grid in the evening when electricity is expensive and then recharged overnight when electricity is cheap.”

Currently only the Nissan Leaf and Mitsubishi Outlander have vehicle-to-home/grid capability.

However, Mr Jafari said many manufacturers were developing the capability in the next generation of models. Earlier concerns by manufacturers on warranty and longevity of battery life were easing as battery technology advanced.

The SA initiative comes as businesses see opportunities in electric vehicles.

AGL last week launched a subscription service in Sydney and Melbourne where a customer could hire an electric vehicle at weekly rates of $299 to $599.

AGL has committed to transition all of its company fleet to electric vehicles by 2030.

ACE electric vehicles is planning to build its cars and vans in SA.