Octopus Energy kick-starts vehicle-to-grid tariff for EVs in UK

Energy tech firm Octopus Energy has recently launched vehicle-to-grid (V2G) tariff 'Octopus Power Pack' in the United Kingdom, the country's first mass market V2G scheme, which guarantees free charging for EV drivers and enable country's shift towards green transport ecosystem. 

The tariff uses V2G technology and Octopus Energy's tech platform 'Kraken' to balance charging and discharging when it's best for the grid. The idea is to charge up the car with cheap, green electricity during off peak times and export the stored (in EV's battery packs) energy back to the grid whenever needed. 

For this, the V2G-enabled EVs need to plugged-in during their idle times, enabling the company's automated system to transfer energy back and forth. To avail free charging, drivers must plug in their vehicles for 170+ hours each month and stay below the usage limit of 333 kWh per month. 

The company claims that an average electric car driver will be able to save more than £850 a year in charging costs on Octopus Power Pack compared to charging on a standard variable tariff. 

Alex Schoch, Head of Flexibility at Octopus Energy, commented on the development, "We recently moved past a million EVs on UK roads – a major milestone – but their true power for storing energy remains untapped. Once we reach 10 million electric cars on the road, we'll have enough storage to power the entirety of Great Britain during peak times. All our drivers have to do is plug in regularly and their charging is completely free".

"EVs are going to be a major lever in our future flexible, green grid, but to get there we need to unlock the capabilities of their batteries. Now we have Octopus Power Pack, it's over to car manufacturers to build the cars that are compatible with V2G technology", he added.

The tariff works as a bolt-on that separates charging from the rest of the home and runs alongside each customer's regular import tariff. Customers can also stack the benefits of payments for solar generation on top of this tariff, claims Octopus Energy.

Further, to enhance customer adoption, the company has set up an exclusive EV division to provide ecosystem services, starting from leasing fully electric car with a home charger, specialist energy tariff, to charging on 'Electroverse' charging network in the country.