Electric vehicles may soon play a much bigger role in household energy use than simply getting people from one place to another.
A new study shows that EV batteries can significantly cut home electricity bills and reduce emissions when used for vehicle to home charging, also known as V2H. The research was carried out by teams from the University of Michigan and Ford Motor Company.
The researchers tested several real world scenarios to understand how bidirectional charging can allow EVs to supply power back to homes. Their findings suggest that this approach can save money, lower emissions from the power grid, and make electric vehicles more attractive than traditional internal combustion engine cars.
V2H works by letting homeowners draw power from their EV battery, much like using a generator but without burning fuel. The study highlights the flexibility this system offers to households.
“Putting vehicle batteries between the electricity grid and homes makes it possible for homes to buy electricity for all household uses when it is cheap and clean—for example, in the afternoon, when there is a lot of solar power—and to store it in the car’s battery for later use,” said Parth Vaishnav, assistant professor at the University of Michigan School for Environment and Sustainability.
“If you’re buying an EV because you want to cut greenhouse gas emissions—or if you’re making an EV because you want to cut greenhouse gas emissions—this tells you that, in addition to reducing greenhouse gas emissions from transport, the EV could also help cut building sector greenhouse gas emissions.”
According to the study, V2H could reduce EV charging costs by 40% to 90% over a vehicle’s lifetime. This equals savings of about $2400 to $5600 for owners.
The environmental impact is also significant. Researchers found that V2H could cut a homeowner’s lifecycle greenhouse gas emissions by 70% to 250%, or about 24 to 57 tons of carbon dioxide on average. This is comparable to 80 to 190 one-way flights between New York and Los Angeles.
The team says this is the most detailed analysis so far of how bidirectional charging affects both household finances and emissions. The study used a mid-sized SUV and evaluated variables such as electricity prices, grid emissions, and outdoor temperatures.
To reflect regionaldifferences, the researchers divided the United States into 432 zones based on climate and grid conditions. Across most regions, V2H showed strong economic benefits.
“When people think of EV charging, it’s usually thought of as a burden, a cost that is added to your electric bill,” said Jiahui Chen, the study’s lead author. “But, with this kind of technology integration, we can make charging an asset.”
The researchers noted that V2H technology is still at an early stage, but the findings underline its strong potential for future energy systems.
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