PG&E to Offer Nation’s First Vehicle-To-Grid Export Rate for Commercial Electric Vehicles

The introduction of the Vehicle-to-Grid (V2G) export compensation mechanism is a game-changer in the sustainable energy landscape. Not only will it accelerate the adoption of electric vehicles (EVs) among commercial users by easing financial burdens, it also creates a mutually beneficial scenario for both the power grid and EV users. By allowing EVs to provide additional power during periods of peak demand, it enhances the stability of the grid and reduces the need for additional, potentially carbon-intensive, energy generation. Furthermore, this innovative approach also underscores PG&E’s commitment to pioneering sustainable energy solutions in the pursuit of a greener and more eco-friendly future.

In a groundbreaking step, Pacific Gas and Electric Company (PG&E), along with the Vehicle-Grid Integration Council (VGIC), Electrify America LLC, and the Public Advocates Office at the California Public Utilities Commission (CPUC), reached a settlement agreement that was adopted by CPUC on October 20, 2022. This agreement further solidifies the commitment to the V2G export compensation mechanism. The rate established under this agreement is projected to encourage increased participation from V2G school buses and other electric vehicles, as it allows them to respond to near-real-time grid conditions. Moreover, it will extend to charging equipment paired with stationary energy storage systems. These systems not only support the grid but also serve as backup power sources to charge vehicles during grid outages, thus reinforcing the reliability and resilience of the energy grid.

With over 420,000 electric vehicles (EVs) traversing the roads within PG&E’s service area, representing one out of every six EVs nationwide, the potential for these vehicles to serve as essential, flexible resources for the grid is increasingly apparent. As larger vehicles like school buses and commercial fleets continue their shift toward electrification, the scale of this potential only expands. This growth occurs at a pivotal moment, especially as California’s energy grid grapples with peak demand challenges. Novel solutions such as Vehicle-to-Grid (V2G) systems are timely, offering innovative ways to maintain a more reliable, affordable, and efficient energy system. These vehicles not only contribute to reducing carbon emissions but also serve as an integral part of the greater energy ecosystem, providing stability and resilience in our rapidly evolving energy landscape.

“The adoption of the nation’s first V2G export rate aligns with our core focus of proactively preparing the grid, increasing access to EV infrastructure, and supporting EV adoption through rates, rebates, tools, and education,” said Aaron August, PG&E Vice President, Utility Partnerships and Innovation.

The introduction of this new export rate structure, in the nation’s largest Electric Vehicle (EV) market, has the potential to serve as a blueprint for additional innovative rate structures across the country. Utility regulators, state agencies, industry partners, and other stakeholders are continuously navigating through the nuances of policy and market design in this rapidly evolving space. The Vehicle Grid Integration Council (VGIC) remains steadfast in its dedication to advancing the role of smart EV charging and discharging. Through robust policy development, comprehensive education, broad outreach, and meticulous research, VGIC aims to support both transportation and electric sector decarbonization. These efforts represent a proactive response to the growing climate crisis, leveraging the versatility of EVs not just as vehicles, but as critical components in the pursuit of a more sustainable energy future.

“The CPUC’s decision is a strong step forward for Californians and in support of the state’s grid, implementing the nation’s first dynamic export rate for EV charging customers,” 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 decarbonization goals. We appreciate PG&E’s constructive approach to supporting this program, and believe it serves as a guidepost for other forward-looking energy providers to follow across the country.”

Pacific Gas and Electric Company (PG&E) is adamantly dedicated to providing accessible, cost-effective, and environmentally conscious clean transportation programs and incentives. The company is endeavoring to reshape the energy landscape in support of California’s goals for clean air, a significant reduction in greenhouse gas emissions, and united action against climate change. By 2030, the company aims to have our grid prepared to accommodate 12,000 GWh of EV-related electric load, and is improving processes to expedite and secure EV energization and interconnection. Furthermore, the company is paving the way for 2 million EVs to participate in vehicle-grid integration applications, solidifying EVs as the bedrock of both reliability and resilience. To cater to commercial and residential EV customers, PG&E offers an extensive and diverse range of resources and programs.