Why EVs aren't powering America's electric grid yet
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Electric cars have been touted for years as a secret weapon against the growing crunch on America's electricity grid. So why aren't we using them?
Why it matters: As electricity demand surges from AI data centers and manufacturing, millions of parked EVs could help utilities manage power shortages, lower costs and keep the lights on.
The big picture: The theory is simple enough: EV batteries can store electricity from the grid when it's plentiful and supply it when demand peaks.
- But expensive equipment, complicated utility regulations and consumer skepticism have kept vehicle-to-grid (V2G) technology from catching on.
Driving the news: Ford says its new Fathom electric pickup, arriving in 2027, could help break the logjam by slashing the cost of two-way charging.
- The truck, starting below $30,000, has a built-in inverter that converts the battery's electricity into power homes can use, eliminating a costly piece of external equipment.
- Ford estimates its new home charging and backup-power hardware will cost roughly $2,100, compared with about $5,200 for its existing system. Final prices haven't been announced.
- Simpler installation could cut costs further.
Follow the money: EV owners could save money — or even get paid — for sharing their batteries.
- They could charge their trucks when electricity is cheap, then use the stored energy to power their homes when rates are high, saving an estimated $30 to $60 per month, Ford estimates.
- They can also earn rewards from utilities for charging or sending power to the grid at the right times.
California utility PG&E says drivers in its pilot program could potentially earn $600 per season by supplying electricity during periods of high demand, though actual payments vary.
- To ease fears of draining their car's battery, consumers could set limits on how much power utilities can draw.
Reality check: Despite years of promises, vehicle-to-grid (V2G) adoption remains tiny.
- PG&E, a pioneer in the technology, says fewer than 70 customers have enrolled in its V2G pilot program, despite 19 eligible EV models.
Between the lines: PG&E's Kristin Landry, who leads the program, says there are three obstacles — availability, affordability and accessibility.
- Cheaper equipment and more compatible vehicles could address the first two.
- But utilities still face a complicated process of integrating different vehicle systems to the grid.
- "Each of these bidirectional charging products is wired differently," Landry tells Axios, which adds complexity in a fragmented industry.
There's also a chicken-and-egg problem: Utilities need enough participating EVs to make grid programs worthwhile, while drivers need easy enrollment and financial incentives to justify the investment.
- PG&E offers up to $4,000 in equipment incentives, yet cumbersome paperwork — like obtaining an electrician's affidavit — has discouraged some customers from enrolling, Landry acknowledges.
- Ford says it's working with five major utilities to simplify the approval process for customers who want to send electricity back to the grid.
The bottom line: Ford may be making bidirectional power affordable. Making it commonplace will take a lot more than cheaper technology.
