AGL and Karmo's V2G Deal: Why EV Drivers Should Pay Attention
AGL has signed with Karmo to manage its EV subscription fleet and explore V2G tech. Here's what it signals for Australian EV drivers and novated leasing.
Australia's largest energy retailer, AGL, has signed a deal with Karmo — Australia's largest car subscription platform — to manage its electric vehicle fleet and explore vehicle-to-grid (V2G) technology, according to The Driven. V2G lets your EV push stored electricity back into the grid — potentially turning your car into an asset that earns, rather than just costs.
This is not a consumer product yet. But it is a meaningful signal: Australia's big-end-of-town energy players are now actively building the infrastructure and commercial agreements that make V2G viable at scale. When energy giants start committing operational resources to EV fleet management, it's reasonable to expect the ecosystem supporting private EV ownership — including novated leasing — to benefit.
What this means for novated lease customers
If you're considering an EV through a novated lease, the AGL–Karmo deal matters for a few reasons.
First, V2G could change the total cost of ownership equation for EVs over a three-to-five year lease term. If your vehicle can feed energy back to the grid during peak periods, the effective running costs of your EV could fall — though the commercial terms for private V2G participation are still being developed across Australia. Second, major energy retailers investing in EV fleet infrastructure signals growing confidence in EVs as mainstream transport, which tends to accelerate charging network build-out, reduce insurance premiums over time, and improve residual values. All of these factors influence the real-world value of an EV novated lease.
EVs already attract meaningful tax advantages under Australia's current FBT exemption framework — the AGL–Karmo development doesn't change that, but it adds to the longer-term case for choosing an EV now rather than waiting.
Common questions
What is V2G and does it apply to novated lease vehicles?
Vehicle-to-grid (V2G) technology allows a compatible EV to discharge stored electricity back to the grid or your home. It's not yet widely available for privately owned vehicles in Australia, but commercial trials like the AGL–Karmo deal are building the groundwork. Whether V2G applies to a vehicle you hold on a novated lease will depend on your vehicle's hardware, your energy retailer, and the lease terms — this is worth watching as the technology matures.
Does this deal affect the FBT exemption on EVs?
No. The AGL–Karmo agreement is a commercial fleet management deal and has no direct bearing on the current FBT exemption for eligible EVs under a novated lease. The FBT exemption is governed by the Treasury Laws Amendment (Electric Car Discount) Act and related ATO guidance.
Should I wait for V2G before getting an EV on a novated lease?
That's your call, but waiting for emerging technology rarely pencils out — the tax and running-cost advantages available today are concrete, while V2G benefits for private owners are still speculative. If an EV suits your needs now, the case for acting on the FBT exemption while it remains available is strong.
Is car subscription different from a novated lease?
Yes. A car subscription (like Karmo's model) is typically a shorter-term, all-inclusive arrangement with more flexibility but less tax efficiency. A novated lease is a three-way salary-packaging agreement between you, your employer, and a finance company — it's structured specifically to reduce your taxable income and is generally more cost-effective for PAYG employees over a two-to-five year term.