The University of Delaware, Exelon Corporation/Delmarva Power and collaborators have released a new report showing that electric vehicles equipped with vehicle-to-grid (V2G) technology can be profitable for private owners and businesses alike, with data from real electricity markets to back up the claims.
The report is the outcome of a pilot program announced in 2024 by UD, and completed at the offices of Delmarva Power, which is part of Exelon Corporation, to confirm the value of V2G services to the grid.
Among the key findings: the collaborators report that a V2G-enabled passenger electric vehicle (EV) could earn as much as $3,359 per year, based on 2021-2025 market prices, for storing and supplying energy to the electric grid during times of need, otherwise known as providing grid services. Heavier vehicles, such as fleet vehicles, delivery trucks or school buses, could earn over $9,000 per year, per vehicle.
That’s a powerful income generator, given that privately owned vehicles are parked 96% of the time, on average, in the United States. Company fleet vehicles — even those operating 40 hours per week — remain stationary 75% of the average work week.
The pilot, which included collaborators Ford Motor Company, the region’s electric grid operator PJM Interconnection, and aggregator Nuvve Corp., was tested using a small fleet of Delmarva Power EVs retrofitted with the bidirectional charging technology and a new advanced communications standard.
The term “bidirectional charging” means that the V2G technology enables electric vehicle batteries to store extra energy from the electric grid when there is a surplus and to discharge that energy back to the grid when it is needed. In this way, V2G-enabled EVs can help the grid stay balanced, strengthening grid resilience and reliability, especially during peak demand and extreme weather events. New PJM rules allow properly certified EVs to provide this balancing and be paid for it — and the pilot proved they can meet these requirements and be paid for the service.
For UD Professor Willett Kempton, who invented the V2G technology with colleagues at the University nearly 30 years ago, it’s a pivotal moment.
“Whether it could scale cost-effectively was an open question, and we’ve proven that it can — with the right combination of policies, standards and technology,” said Kempton, professor of marine science and policy.
For businesses such as Exelon, the report makes clear that V2G technology can help offset the cost of fleet electric vehicles while supporting the electric grid. This is because when the batteries in the parked fleet vehicles are aggregated together, they can function as a virtual power plant. The result is energy storage and supply that is available to the electric grid significantly faster than other conventional power resources, with virtually no wait times needed to power up or down.
Unlocking a parked vehicle’s earning power
Since Kempton and colleagues pioneered the innovative V2G technology, UD researchers have kept the charge going, accelerating progress on everything from V2G technology development to new automotive communication standards (called LIN-CP) for electric cars. They have advanced policy innovations at the state and federal level to overcome barriers in widespread adoption by enabling V2G technology to compete in electric markets, too.
The recent pilot with Exelon/Delmarva Power and others also revealed that the EV batteries used for V2G remained fully functional after a full year of market operation — with no measured reduction in battery health — all while providing pollution-free power.
“Something that might not be obvious to everyone is that these payments are not a subsidy; these EVs are earning money by competing with legacy generators, which is novel in a lot of ways,” said Kempton. “And when you’re participating in the market instead of a fuel-burning generator, you’re also reducing pollution.”
This makes the technology both economically smart and functionally sound in a world where the electric grid is expected to include more renewables in the coming years.
Kempton explained that most U.S. planned future electricity generation is scheduled to come from wind and solar. This will create greater fluctuation in the electric grid, which means more storage for energy surpluses will be needed. That’s where V2G can help, Kempton said.
According to Brian Derr, senior analyst, Exelon Technology and R&D, insights from the pilot will inform future deployments and support the company’s broader strategy to enable the clean energy transition while maintaining reliable service for the communities it serves.
“By leveraging existing assets in new ways, Exelon is positioning itself to build a more flexible, resilient and customer-focused energy system,” said Derr.
Accelerating progress toward a V2G industry
Next steps to expand the V2G industry to support the grid will require mass manufacturing to scale up the number of individual cars or fleets that are participating and earning money, Kempton said.
Until now, changes to V2G-enabled vehicles have been done by retrofitting existing EVs to accommodate the V2G technology. Now with lower-cost standards and realistic market revenue values that can be expected, Kempton is looking at how this becomes adopted in many cars and many charging stations.
“We’ll need at least a few car companies and charging station companies to mass produce this V2G equipment, and to deploy the technology into vehicles in the factory,” Kempton said. “If it is designed in, and mass produced, it’s incredibly cheap, especially when you compare it to the potential yearly revenue.”
At UD, faculty and students continue to play a large role in the work aimed at bringing a fully functioning V2G industry to fruition. Kempton, Rodney McGee and recent graduates John Metz and Catherine Gilman, for example, are focused on policy changes and standards to allow V2G-enabled electric vehicles to provide grid services in more states. Such policies currently exist in Delaware and Maryland. Kempton would like to see this number grow.
Meanwhile, UD postdoctoral researcher Garrett Ejzak and alumnus Go Charan Kilaru are focused on other aspects of the work. Ejzak is developing and testing these new EV technologies, and Kilaru is designing cryptography measures to ensure security protocols for V2G communications. Concurrently, UD students Colden Rother, Jude Borden, Lucia Paye-Layleh and Emmie Rossi are examining ways UD could electrify some of its campus fleets, under the advisement of UD’s Kimberly Oremus, associate professor of marine science and policy, economics, and public policy and administration.
To arrange an interview with Kempton, visit his profile page below and click on the "contact" button. For interviews with officials from Exelon/Delmarva Power, contact Matt Ford, in
Delmarva Power Communications, at 302-429-3060.
