Massachusetts pays EV owners to feed power back to grid – what London could learn from the V2G experiment

Massachusetts tests vehicle-to-grid payments

A new state pilot programme in Massachusetts is paying 60 homeowners to discharge electricity from their electric car batteries back into the grid during peak demand. The scheme, reported by Heatmap and picked up by Planetizen, is the first time electric vehicles (EVs) have been included in the state’s existing demand flexibility programme, ConnectedSolutions. Participants enroll through Sunrun or The Mobility House and receive payments for the power their vehicles supply.

The technology, known as vehicle-to-grid (V2G), is not new. Trials in Japan, the Netherlands and Denmark have demonstrated that bidirectional chargers can turn parked EVs into a distributed storage resource. Yet the Massachusetts pilot is notable because it integrates EVs directly into a utility demand-response programme that already covers home batteries. A typical home battery stores 10 to 15 kilowatt-hours; an EV battery stores 70 to 100 kilowatt-hours. Even a small fleet of plugged-in cars could offset the need for gas peaker plants on hot summer afternoons.

The programme is still small and limited to a narrow set of vehicle models. “Even at this early stage, with limited scale and narrow eligibility requirements, Massachusetts’ early adopters are already demonstrating the technology’s value,” the Heatmap report notes. Participating batteries have already contributed to the grid since the programme launched last month.

Why V2G matters for urban grids

Urban grids face a growing challenge: the electrification of transport and heating is pushing peak demand higher, while the closure of fossil-fuel plants reduces dispatchable capacity. In many cities, the distribution network is already strained during heatwaves or cold snaps. V2G offers a way to shift load without building new substations or running expensive backup generators.

The economics depend on battery degradation, charger costs and tariff structures. At present, bidirectional chargers are more expensive than standard units, and not all EVs support them. But the Massachusetts pilot suggests that, under the right conditions, the revenue from grid services can offset the upfront cost for participants. For city planners and transport authorities, the appeal lies in turning a large existing asset – the growing fleet of EV batteries – into a flexible resource that can be dispatched when needed, without requiring dedicated land or new infrastructure.

London’s EV integration challenge

London has one of the most ambitious EV adoption targets in the UK. The Mayor’s Transport Strategy aims for all new cars and vans sold in London to be zero-emission by 2030, and the city already has more than 17,000 public charge points. The Ultra Low Emission Zone (ULEZ) and the forthcoming expansion of the Congestion Charge zone have accelerated the shift to electric. By 2025, roughly one in five new car registrations in London were battery electric, and the proportion continues to rise.

Yet the grid integration piece is still in its infancy. Transport for London and the boroughs have focused on charge point density, not on using the vehicles themselves as storage. The London Energy and Environment Strategy, published by the Greater London Authority, acknowledges the need for smart charging and demand-side response, but it does not yet include a dedicated V2G pilot. The capital’s distribution network operator, UK Power Networks, has tested domestic battery storage as part of its flexibility services, but EVs have not been formally enrolled in large numbers.

A London pilot would face different constraints from Massachusetts. The housing stock is denser, with many residents living in flats or terraced houses without off-street parking. On-street chargers with bidirectional capability are rare, and the cost of installing them at scale would be high. On the plus side, London’s electricity grid already has a strong demand flexibility market, and the Mayor’s authorities have a track record of trialling new transport technologies, from the ULEZ to the Bakerloo line extension.

What a London pilot could look like

If a London V2G programme were to be developed, it would most likely start with a small fleet of fleet vehicles – such as electric taxis, buses or council vans – that have predictable parking schedules and can be centrally managed. The black cab fleet, for example, already has a dedicated charging network and is required to be zero-emission by 2027. Taxis parked during the night could discharge into the grid in the morning peak, then recharge during the day.

Another candidate is the growing number of electric buses in the Transport for London fleet. With over 1,000 electric buses now in service, the depot chargers could be used for V2G services if the buses are plugged in during off-peak hours. The practical barriers include battery warranty issues, the need for compatible chargers, and the coordination with bus operating schedules.

For residents, the challenge is more acute. Few London homes have dedicated parking, and the market for bidirectional chargers is still small. The Mayor’s Office and London Councils are exploring kerbside charging models, but none currently include V2G capability. The technology would need to be demonstrated in a controlled environment before being rolled out more widely.

Key facts

Source limitations and next checks

The Massachusetts programme is reported via Heatmap and Planetizen; no primary official documentation from the state utility or Massachusetts Department of Energy Resources was available in the source material. The details of payment amounts, battery degradation data and long-term reliability are not yet public. The results remain preliminary.

For London readers, the key takeaway is not that a V2G pilot is imminent, but that the capital’s grid operators and transport planners should be watching the Massachusetts experiment closely. The technical, commercial and regulatory lessons from a small US programme could inform the design of a future London trial. In the meantime, those interested in the technology can follow the ConnectedSolutions programme updates and the work of UK Power Networks’ flexibility services.

Source: Planetizen News, “Massachusetts program pays EV owners to put power back into the grid”, https://www.planetizen.com/news/2026/07/138064-massachusetts-program-pays-ev-owners-put-power-back-grid (based on reporting by Heatmap).