EVs Aren't Killing the Grid — They Could Actually Save It
New analysis says EVs can stabilise Australia's electricity grid, not strain it. Here's what that means if you're considering a novated lease on an EV.
There's a persistent story doing the rounds: everyone plugging in an EV at 6pm is going to collapse the grid. It's repeated often enough that some people use it as a reason to delay buying one.
A June 2025 piece from The Driven pushes back on that hard. According to their analysis, EVs are not a threat to grid stability — they're potentially one of the tools that keeps it stable, provided we design charging infrastructure and policy to take advantage of that.
The argument is straightforward: a parked EV is a large battery sitting idle most of the day. Smart charging — and eventually vehicle-to-grid (V2G) technology — means that battery can absorb cheap excess solar during the day and push power back during evening peaks. The grid problem becomes a grid solution.
What this means for novated lease customers
If you're sitting on the fence about whether to put an EV on a novated lease, the "I'll wait until the grid sorts itself out" concern is looking increasingly thin.
The policy direction in Australia is clearly moving toward smarter EV integration, not restriction. That matters for a few reasons. First, home charging off-peak tariffs are already available from most retailers — meaning the cost to run an EV can be lower than many people expect. Second, as V2G-capable vehicles reach the Australian market, there's a real possibility that your leased EV earns you money by feeding power back during peak periods.
From a novated lease perspective, the FBT exemption for eligible EVs (currently in place for battery electric and plug-in hybrid vehicles under the luxury car tax threshold, per ATO guidance) already makes the numbers compelling on their own. Add potential savings on running costs as grid integration improves, and the case gets stronger over time — not weaker.
Common questions
Will plugging in my EV at home damage the grid?
Not if you charge smart. Most modern EVs and home chargers let you schedule charging for off-peak hours — typically overnight or mid-morning when solar supply is high. Unscheduled mass evening charging is a real design challenge, but it's a policy and infrastructure problem, not an inevitability.
What is vehicle-to-grid (V2G) and is it available in Australia?
V2G lets your EV export stored electricity back to the grid or your home during high-demand periods. A small number of V2G-capable vehicles and chargers are beginning to arrive in Australia, but widespread rollout depends on network rule changes and compatible hardware becoming mainstream.
Does the FBT exemption apply to all EVs on a novated lease?
The exemption currently applies to battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) that fall below the luxury car tax threshold for fuel-efficient vehicles. PHEVs are subject to a legislated phase-out date for the exemption. Always confirm your specific vehicle's eligibility with a licensed adviser before committing.
Does it matter for my novated lease whether my EV can do V2G?
Not for FBT purposes right now. V2G capability doesn't change your lease structure or tax treatment at this point. It may become relevant down the track if ATO guidance is issued on electricity exported from a novated vehicle, but that's not current law.
Is now a good time to get an EV on a novated lease, or should I wait?
The FBT exemption exists now, and there's no guarantee it stays in its current form indefinitely. Waiting for grid infrastructure or V2G policy to mature means potentially missing the current tax benefit window. That's a trade-off worth thinking through with numbers in front of you.