Vehicle-to-grid incentives: what the government is considering

What's been reported

On 26 October the Guardian reported that ministers are considering offering carmakers additional ZEV credits for cars that can do vehicle-to-grid. The ZEV mandate requires carmakers to sell a rising share of zero emission cars and vans each year, and credits are how they show they've met it, so an extra credit would be an incentive for the carmaker rather than a payment to the driver.

The report followed the Department for Transport's review of the ZEV mandate, a consultation that ran from 14 August to 23 October 2026. Its introduction says V2G services “could further benefit households by enabling them to earn revenue” and that EVs could become a valuable source of flexibility for the electricity system, and one part of the consultation covers new credit mechanisms. We couldn't confirm from the published consultation text what a V2G credit would be worth or which cars would qualify. The government says it will respond in due course and hasn't given a date.

What the government has committed to

The firmer commitments are in the Department for Energy Security and Net Zero's Clean Flexibility Roadmap, updated in July 2026:

• Levies on exported electricity. The government will take powers, when parliamentary time allows, to remove final consumption levies from electricity that's stored and then exported again. The roadmap calls this a key ask of industry and says it will boost the financial viability of V2X. A further consultation on the detail will follow, with no date set.
• Charger communication standards. After informal talks with industry, a formal consultation on the communication standards charge points need for smart charging and V2X is due by the end of 2026.
• V2X in the cars themselves. The government says it's seeking to encourage V2X capability in vehicles, including by considering links with the ZEV mandate, which is where the reported credits would fit.
• Grid connections. The roadmap says the government has mapped the grid connection problems V2X faces and will take several actions to deal with them, without giving dates.
• Home energy standards. Technical specifications for smart appliances are to be extended to cover bidirectional EV charging in 2027.

Separately, the government's V2X Innovation Programme funded six trial projects in its second phase, covering rural resilience, electric HGVs, fleets and wireless V2G, with grants adding up to about £7.2 million on our sums.

The arguments for and against

The case the government makes is about the grid. A parked EV with a large battery can take electricity when there's plenty of it and send some back at the evening peak, and the households involved can be paid for it. Removing levies on exported electricity addresses one of the costs that makes this harder to offer.

The concerns raised in the press coverage of the credits idea were:

• extra credits for V2G cars could let carmakers meet the mandate with fewer zero emission sales, and so sell more petrol and diesel cars
• credits would reward carmakers for fitting the hardware whether or not drivers ever use it, and a think tank, New AutoMotive, said credits should only follow actual use
• V2G needs off-street parking and a home charger, which leaves out a lot of renters and people in flats
• drivers worry about extra battery wear, and carmakers' warranty terms for bidirectional use vary

What's held V2G back so far

A 2021 case study published by Ofgem, from an earlier UK trial with Nissan Leafs, named the main barriers as a charger costing around £3,700 more than a standard smart charger, very few compatible cars, getting connections approved by the network operator, and limited access to the markets that pay for flexibility. That trial paid owners 30p/kWh for electricity sent back to the grid across 330 installed chargers.

Some of that has moved on. There's now a V2G offer on sale, and more cars have bidirectional hardware, but in the UK a lot of them only offer vehicle-to-load, which runs appliances rather than the house or the grid. V2G still needs G99 approval from your network operator, and Octopus says Power Pack can't be combined with Agile, Tracker or its Intelligent tariffs.

If you're buying an EV now

• There's no grant or credit for drivers, and the reported credits would go to carmakers.
• Check whether a car supports V2G in the UK, not just V2L. Our V2L guide explains the difference and our V2G guide lists where each carmaker stands.
• If you want V2G now, Power Pack with a BYD Dolphin is the only route, and its conditions include keeping the car plugged in 12 hours a day on 20 days a month.
• If you don't, a cheap overnight tariff like Octopus Go is the simpler way to cut charging costs.