In Smartcar's joint webinar with Optiwatt and Leap, we discussed how EVs can be maximized as grid resources, integrating EVs into smart charging programs, and overcoming vehicle-to-grid challenges. Read on for a recap of some event highlights!
The smart charging ecosystem is evolving, and many businesses are looking to break into this market with unique products and services. But an emerging use case like smart charging introduces unfamiliar business challenges for leaders and stakeholders, especially when it comes to monetizing offerings, attracting customers, and implementing technologies at scale.
Here are a few tips from our speakers on how smart charging programs can support electric grids and increase grid revenue (📺 and you can watch a full replay of the webinar here):
🔌 Introducing customer preferences in demand response
🔋 Integrating EVs into the grid
⚡ Monetizing smart charging through energy markets
What is smart charging?
Smart charging is an energy demand response initiative that allows utilities to actively manage when EVs are being charged in a particular territory. The goal of smart charging — or managed charging — is to use EVs to reduce electricity consumption when the grid is strained.
Unlike conventional EV charging, smart charging automatically schedules charging during hours when electricity demand is lower.
For example, PG&E is a utility that can charge higher rates from 4 p.m. to 9 p.m. in Northern and Central California since that's when more customers are at home and using electrical appliances. Smart charging programs will automatically start charging EVs outside of these hours.
Shifting energy loads away from off-peak hours also gives grids the flexibility they need to rely on sustainable energy and reduce grid emissions. “A lot of solar and wind [energy sources] in the grid can create variability, especially during that day when that power might almost be free,” says Thomas Folker, CEO at Leap.
Smart charging benefits everyone:
- Grids lower carbon emissions: Optimized charging can reduce renewable energy curtailment by 40%.
- Drivers save money: Peak rates can be 5x more than off-peak rates. Drivers can save over $300 a year in charging costs.
- Grids save operating costs: 5 million EVs with smart charging can save California grids up to over $600 million in operating costs.
- EV businesses generate grid services revenue: Offsetting a year’s worth of electricity from 1,700 homes could generate over $4 million in grid services revenue.
Maximizing efficiency within the EV charging ecosystem
There are many moving parts to building a successful smart charging business. Finding the right technology partners can help your team meet product roadmaps and productivity goals without sacrificing the quality of your service.
Optiwatt is a free direct-to-consumer app that helps EV owners schedule charging during hours when electricity rates and emissions are lower.
“Optiwatt’s mission here is to make sure we can enroll millions of EV owners into demand response events in a way that they’re actually comfortable with, without feeling like a guinea pig in the system,” says Casey Donahue, CEO at Optiwatt.
Executing this mission at scale becomes more effective when components like building EV integrations and participating in Independent System Operator (ISO) markets are handled by experienced vendors in the ecosystem. Watch a clip from the webinar below to learn how Optiwatt works with Smartcar and Leap to help EV drivers manage their charging.
Connecting EVs to the grid
“Vehicle-to-grid (V2G) is the swiss army knife of the grid. It enables everything a traditional gas power plant can do but clean and decarbonized,” Folker says.
But connecting EVs to the grid isn’t easy. In fact, attendees at our webinar said it was the biggest challenge to implementing an EV smart charging program.
“Not having a way to know when cars need to be recharged or having a way to control when a car should charge makes it difficult to manage the addition of all the EVs were adding to the grid,” says Sahas Katta, CEO at Smartcar.
The great news is that we don’t need hardware to make it happen. Roughly 97% of EVs today are shipped with built-in 4G or 5G cellular modems. But developers still face the bottleneck of having their software communicate with these vehicles at scale.
Building and maintaining EV APIs with over 60 unique models across a dozen brands is difficult, especially if your team is focused on the implementation of programs and the acquisition of participants.
That’s why Optiwatt uses Smartcar’s APIs to see when and where a vehicle is charging, the amount of charge a vehicle needs, and to automatically start charging at optimal times. You can learn more about how Optiwatt uses Smartcar’s APIs in this customer story.
How do smart charging businesses get revenue?
Smart charging businesses can monetize their efforts by participating in energy markets. Leap’s infrastructure helps apps like Optiwatt sell or buy back power at attractive prices so that EVs can be used to replace electricity generation from fossil fuels.
When EVs are connected to the cloud, they’re able to communicate with Leap and integrate themselves into the energy market. If your company isn’t in the business of trading energy all day long, outsourcing those efforts to platforms like Leap helps you focus on product goals and technology development.
As a free app, Optiwatt makes money by helping utilities reduce peak load. Using Leap, Optiwatt is notified when there are peak load events so drivers can be prevented from charging during those hours. By lowering grid stress while ensuring drivers get their vehicles charged on time, Optiwatt meets customer needs for scheduled charging while seamlessly monetizing their efforts.
Are you launching an EV smart charging program or service?
At our webinar, 43% of our attendees came from companies that are currently monetizing EV smart charging while 14% said they had plans to monetize EV charging soon.
If you’re curious to learn more about how to optimize your EV charging business for increased grid revenue and customer acquisition, watch a replay of the webinar here.
- EV charging success stories: Check out how Smartcar has helped EV charging businesses expand their offerings and reach more users without hardware
- Why EV managed charging programs use vehicle telematics: Learn from companies and industry experts on the benefits of software in the managed charging ecosystem