The Energy Storage Report 2024

Now available to download, covering deployments, technology, policy and finance in the energy storage market

California utility PG&E offers first V2G export rate for commercial EVs


California utility PG&E has received approval to establish the US’ first vehicle-to-grid (V2G) export compensation mechanism for commercial EV charging customers in its service area.

The V2G export rate is the first dynamic export rate for EV charging customers to-date. PG&E said this will promote EV adoption and encourage vehicles to export power back to the grid during peak periods of demand.

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

It is hoped the new rate will increase participating in V2G programmes by school buses and other EVs in response to grid conditions. It will also will be available to charging stations which are paired with stationary energy storage systems (ESS).

The agreement was formulated through discussions between advocacy group Vehicle-Grid Integration Council (VGIC), EV charging station network operator Electrify America, and the California Public Utilities Commission (CPUC), which adopted it on 20 October.

A press release said that PG&E’s service area account for one in six EVs in the US, around 420,000, and that large vehicles like school buses and commercial fleets could serve as crucial, flexible grid resources in future.

Ed Burgess, VGIC policy director, said: “As ever-greater numbers of EVs hit the roads, this innovative rate option will allow EV owners to further benefit from their investment in clean transportation.”

“Leveraging the capability of EVs as a grid resource will help integrate more clean energy into our power system, reduce energy bills for all utility customers, and support California’s ambitious decarbonisation goals.”

As has reported when covering the topic of V2G, many industry observers see buses and commercial EVs as much more fertile ground for scaling up V2G programmes than the consumer EV space. This is because of larger battery sizes, more predictable usage schedules and a less atomised pool of customers.

School and transit buses in particular are being touted as a particular opportunity, and have also electrified much faster than the consumer EV space in the US, according to figures provided to by a spokesperson for The Mobility House, a Germany-based one-stop-shop EV charging and V2G solution firm.

Out of 100,000 public transit buses, some 3,500 are electric (3.5%) while 12,000 out of the 500,000 (2.4%) school buses have made the switch to-date, the data shows. Compare that to less than 1% of consumer vehicles according to most data sources, including a Reuters infographic report from February this year.

22 October 2024
New York, USA
Returning for its 11th edition, Solar and Storage Finance USA Summit remains the annual event where decision-makers at the forefront of solar and storage projects across the United States and capital converge. Featuring the most active solar and storage transactors, join us for a packed two-days of deal-making, learning and networking.
18 March 2025
Austin, Texas
The Energy Storage Summit USA is the only place where you are guaranteed to meet all the most important investors, developers, IPPs, RTOs and ISOs, policymakers, utilities, energy buyers, service providers, consultancies and technology providers in one room, to ensure that your deals get done as efficiently as possible. Book your ticket today to join us in 2025!

Read Next

June 21, 2024
Rankings by EY of the most attractive markets for renewable energy investment include battery storage, with US, China and UK as frontrunners.
June 20, 2024
Recurrent Energy has closed US$513 million financing on a battery storage project in Arizona, US, which has a 20-year utility tolling agreement in place.
June 20, 2024
The US energy storage industry saw its highest-ever first-quarter deployment figures in 2024, with 1,265MW/3,152MWh of additions.
June 20, 2024
NHOA Energy signed an agreement with Statkraft to supply a battery energy storage systems (BESS) for a 113MWh project in Coylton, Scotland.
June 18, 2024
Octopus Energy’s head of flexibility discussed its tolling deal with Gresham House for nearly 1GWh of BESS projects, including how they will fit into its VPP portfolio and whether their energy market activity could change under its control.

Most Popular

Email Newsletter