BYD to lead $13.6 million vehicle-to-grid expansion in Australia

The Australian Renewable Energy Agency (ARENA) is investing an additional $13.6 million to expand a vehicle-to-grid (V2G) trial to 1000 households, in tandem with a wider rollout of so-called 'smart charging'.

The trial – first announced in 2024, with the first residential V2G installation occurring in November 2025 – is being conducted through energy provider Amber Electric and will see it work with automakers operating in Australia, with BYD leading the latest expansion.

V2G enables ‘bidirectional’ charging, allowing electric vehicles (EVs) to both receive electricity and send energy stored in their batteries back into the grid.

Mitsubishi became the first brand in Australia to receive government approval for its vehicles – plug-in hybrid (PHEV) versions of the Outlander and Eclipse Cross – to feed electricity back into the grid in 2024.

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The latest investment will see the 50 V2G residential chargers announced as part of the project last year expanded to 1000 households.

ARENA said it will also expand smart charging from the current 950 homes to 2000 homes, allowing EV owners to charge their vehicles when electricity prices and emissions are at their lowest.

“Vehicle-to-grid technology has the potential to transform how we think about and deploy energy storage and grid support,” chief executive Darren Miller said in a statement issued after the first V2G charger was installed last year.

“By enabling Australians to participate in the energy market through their EVs, we’re unlocking new value streams and building a more resilient, renewable-powered future.”

The latest announcement builds on the initial phase of the project, increasing total funding from $3.2 million to $16.8 million.

According to ARENA, the expanded trial also aims to address “warranty concerns” through real-world testing conducted in collaboration with vehicle manufacturers, with BYD set to lead development.

“To unlock V2G at scale, we need to bring together customers, carmakers, networks and technology providers,” Mr Miller said.

“A big part of that is giving manufacturers the confidence their vehicles will perform as expected, including through validated approaches to battery use and warranties.

“This project brings those pieces together to demonstrate how EVs can become an active part of the energy system.

“That means savings for owners and better utilisation of the grid, which can bring down the cost of the network for everyone.”

More broadly, ARENA is funding the national Vehicle-Grid Network (VGN), announced by the Australian Government last November, with the aim of accelerating large-scale adoption of V2G bidirectional charging nationwide.

It comes as EV sales in Australia hit record levels, with the Tesla Model Y leading the national sales charts in May, knocking the Ford Ranger out of the top spot.

In May, EV sales surged 111.6 per cent year-on-year to reach a record 19.9 per cent market share.

It was the second consecutive month of record EV sales, with soaring petrol and diesel prices pushing more buyers towards electric vehicles.

MORE: Australian Government wants EV, PHEV owners to start sending power to the grid