In collaboration with Vauxhall, Octopus Energy unveiled pioneering offers this week for electric vehicle (EV) owners in the UK, featuring free or reduced-cost charging options.
The highlight of these offers is the innovative Power Pack tariff, hailed by Octopus as the first mass-market vehicle-to-grid (V2G) tariff in the UK. This scheme offers EV owners free charging provided they connect their vehicle for approximately six hours daily and keep their monthly energy consumption under 333kWh—equivalent to driving about 12,000 miles annually.
Presently in its beta stage, this automated tariff leverages V2G technology alongside Octopus Energy's Kraken tech platform to optimize the timing of charging and discharging based on grid needs. This system enables an EV to charge at low costs with sustainable electricity during off-peak periods and supply energy back to the grid when demand and prices surge.
Octopus Energy estimates that the average driver could enjoy savings exceeding £850 annually on charging costs with the Power Pack tariff compared to standard variable tariffs.
While the availability of V2G-compatible vehicles is currently limited, manufacturers like Volvo are poised to introduce suitable models in the near future.
Alex Schoch, head of flexibility at Octopus Energy, said the launch of offers such as Octopus Power Pack means it is now over to car manufacturers to build more vehicles compatible with V2G technology.
"We recently moved past a million EVs on UK roads - a major milestone - but their true power for storing energy remains untapped," he said. "Once we reach 10 million electric cars on the road, we'll have enough storage to power Great Britain during peak times. All our drivers have to do is plug in regularly, and their charging is completely free.
"EVs are going to be a major lever in our future flexible, green grid, but to get there, we need to unlock the capabilities of their batteries."
This announcement coincides with Vauxhall's revelation of a partnership offering a year's free charging credit at over 2,700 charging points in 619 Tesco stores nationwide to customers who buy an EV directly from their retailers.
Moreover, the same week saw the commencement of an eight-week government consultation to simplify the installation of heat pumps and EV chargers in England. This move seeks to accelerate the adoption of clean energy technologies by proposing more flexible regulations for the placement of EV chargers in off-street parking areas and suggesting the removal of constraints on charger installations near highways.