EVs and the Grid: Why the Experts Are Backing Electric Vehicles
Australia's energy market operator says EVs could strengthen the grid, not strain it. Here's what that means if you're considering a novated lease on an EV.
The narrative that electric vehicles will 'crash the grid' has been a favourite talking point for EV sceptics. But according to a report covered by EVcentral AU, Australia's own energy market operator is now pushing back hard on that claim — arguing EVs are actually critical to the future health of the electricity grid, not a threat to it.
The logic isn't complicated. Smart-charged EVs can absorb excess renewable energy during off-peak periods and, in a vehicle-to-grid setup, push power back when demand spikes. That makes a large EV fleet a distributed battery network, not a burden.
What this means for novated lease customers
If you're weighing up whether to put an EV on a novated lease right now, the broader policy direction matters. When Australia's grid operator publicly frames EVs as infrastructure — not just cars — it signals that government support for EV adoption is unlikely to reverse. The FBT exemption for eligible battery electric vehicles and plug-in hybrids that currently makes novated leasing so attractive for PAYG employees exists inside that same political environment.
That doesn't mean you should make a vehicle decision based on grid policy statements. But it does mean the conditions that make an EV novated lease financially interesting — tax treatment, growing charging infrastructure, manufacturer investment — are pointing in one direction. According to the EVcentral AU report [Source 1], experts see EV uptake as a feature of a stable energy future, not a bug. That kind of institutional backing tends to stick around.
As always, the numbers for your specific situation depend on your salary, the vehicle, your employer's payroll setup, and your personal running costs. Potential savings are real but individual — which is why a proper quote beats a back-of-envelope estimate every time.
Common questions
Will charging an EV at home really put pressure on the electricity grid?
The concern is largely about unmanaged, peak-hour charging. Smart charging — scheduling your car to charge overnight or during high-renewable periods — is how EV owners can avoid contributing to grid stress. Most modern EVs and home chargers support scheduled charging out of the box.
Does the grid situation affect the FBT exemption on EVs?
Not directly. The FBT exemption for eligible zero and low-emission vehicles is a federal tax measure, separate from grid infrastructure policy. It currently applies to battery electric vehicles and eligible plug-in hybrids below the luxury car tax threshold, subject to ATO rules. Always confirm current eligibility with your adviser.
What is vehicle-to-grid (V2G) and does it affect my novated lease?
V2G technology lets a compatible EV discharge stored energy back to the grid or your home. It's still early-stage in Australia but growing. It doesn't change how a novated lease is structured today, though it may influence which vehicle you choose if you're thinking long-term.
Is now a good time to put an EV on a novated lease?
The FBT exemption for eligible EVs is one of the more significant tax benefits available to Australian PAYG employees right now. Whether it's right for you depends on your salary, how much you drive, and which vehicle you want — a quote is the only way to see your actual numbers.