EVs Aren't Breaking the Grid — They Might Save It
New analysis says EVs could 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 worry doing the rounds: if everyone plugs in an electric vehicle at 6pm, the grid collapses. It's a reasonable-sounding fear, and the electricity industry spent years treating EVs as a problem to manage — a "new load" dumped on an already stretched network.
A new piece from The Driven [Source 1] challenges that framing directly. The argument: EVs, if we design charging systems properly, are actually a flexible asset — one that can absorb excess renewable generation during the day and ease demand pressure in the evening. In other words, the same battery sitting in your driveway could help keep the lights on, not flicker them.
What this means for novated lease customers
If you're weighing up an EV on a novated lease, the grid narrative matters for two practical reasons.
First, running costs. The case for EVs on a novated lease already leans heavily on lower fuel and servicing costs compared to a petrol car. Smart charging — off-peak, or eventually through vehicle-to-grid (V2G) setups — could push those running costs lower still. That's not a guarantee yet, but the policy and infrastructure groundwork is being laid.
Second, the FBT exemption isn't going anywhere fast. The federal government's zero-FBT treatment of eligible battery electric and plug-in hybrid vehicles is tied, at least politically, to the broader EV adoption story. A grid that benefits from EVs rather than buckling under them strengthens the public policy case for keeping that exemption in place. According to the source analysis [Source 1], the technology and design principles to make EVs grid-friendly already exist — the question is implementation speed.
None of this means you should lease an EV purely on grid-policy speculation. But if you were looking for a reason to feel less nervous about committing to electric, the "grid can't handle it" objection is looking shakier by the month.
Common questions
Will charging my EV at home overload the grid?
Not if you charge smart. Off-peak overnight charging — which most home setups default to — spreads load rather than spiking it. The real opportunity is smart or managed charging that responds to grid signals automatically.
What is vehicle-to-grid (V2G) and is it available in Australia?
V2G lets your EV battery send electricity back to the grid or your home when demand is high. It's in trial stages in Australia and not yet mainstream, but several utilities and manufacturers are actively piloting it.
Does the EV FBT exemption depend on grid or energy policy?
Not directly — the exemption is a tax measure, not an energy one. But political support for the exemption is linked to the broader EV adoption agenda, so a positive grid story generally supports its continuation.
Is an EV on a novated lease actually cheaper than a petrol car?
For many PAYG employees, the combination of the FBT exemption and lower running costs makes an EV novated lease genuinely competitive. The right answer depends on your salary, how much you drive, and which vehicle you choose — use a calculator or talk to a broker to run your numbers.
Which EVs are eligible for the FBT exemption in Australia?
Battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) below the luxury car tax threshold are currently eligible, subject to ATO and employer conditions. Check the ATO's current guidance for the definitive list.