Much of my early academic and consulting career focused on the growth of the distributed solar industry. My dissertation at the University of Delaware, supported by the U.S. Department of Energy, explored the economic value of distributed solar generation. I later co-authored several pioneering studies using satellite-derived solar resource data to demonstrate that solar energy is both highly reliable and predictable—attributes essential to grid stability.[1]

Over the past two decades, distributed solar has grown from a technology primarily used in off-grid applications—including, somewhat infamously, by off-grid cannabis growers in California[2]—to a multi-billion-dollar, grid-connected industry delivering low-cost, clean electricity to millions. Looking back, I see key lessons that can guide us as we work to scale Vehicle-to-Grid (V2G) technology.

Parallel Paths—and Key Differences

V2G today faces many of the same questions that surrounded distributed solar in its early years: Can it reliably serve the grid? Is it cost-effective? Will utilities support it? What’s needed from regulators?

Both technologies involve complex ecosystems—hardware manufacturers, software providers, installers, utilities, and end users—each with distinct interests. That complexity creates friction, but also opportunity for innovation and partnership.

At the same time, there are critical differences between the distributed solar and V2G:

• Mobility: Unlike fixed solar arrays, EVs are mobile and may not always be available when grid needs arise.
• Ownership and Behavior: While solar assets are typically stationary and owned long-term, V2G depends on EV customers whose ownership model and charging behavior vary.
• Grid Services: V2G offers a broader array of services—frequency regulation, demand charge management, and demand response—compared to the more limited role of solar PV, which primarily produces energy during periods of high solar availability.

Lessons from Distributed Solar

1. Standardization Enables Scale

Early solar deployment was hampered by fragmented hardware and inconsistent interconnection requirements. The adoption of common standards—like IEEE 1547—helped streamline processes, cut costs, and build market confidence.

V2G needs the same. Standards like ISO 15118 and OCPP are vital to ensure that EVs, chargers, and grid systems communicate seamlessly. Without that interoperability, we risk repeating the delays and inefficiencies solar once faced. If we want to scale V2G, we must learn from solar’s experience and go further. Standards must be enforceable, testable, and adaptable—supported by an ecosystem of tools and governance frameworks that support real-world functionality, not just protocol compliance.

2. Regulatory Clarity Builds Markets

Distributed solar’s growth was driven in large part by clear, supportive policies: net metering, interconnection, renewable portfolio standards, and federal and state incentives. These mechanisms helped clarify value, reduce risk, and attract capital.

V2G needs a similarly coherent policy framework. Dynamic pricing, fair compensation for grid services, deployment targets, and streamlined interconnection procedures will be essential. Right now, the patchwork of policies and pilot programs makes long-term planning difficult for technology vendors, installers, and investors alike.

3. Business Model Innovation and Aggregation Platforms Are Critical

The growth of distributed solar was driven in large part by innovative business models. Leasing arrangements, power purchase agreements (PPAs), and community solar projects helped reduce upfront costs and opened the door to broad participation. More recently, aggregation platforms—often in the form of virtual power plants (VPPs)—have enabled distributed solar and solar-plus-storage systems to participate in wholesale energy markets and utility demand response programs.[3]

V2G will require similar creativity to scale—but not just in how vehicles are aggregated. While early efforts have focused on coordinating bidirectional EVs as standalone grid resources, particularly in fleet settings with predictable availability, the real technical and financial gains come from orchestrating co-located assets. When V2G is integrated with on-site solar, stationary storage (BESS), and controllable building loads, sites can operate as dispatchable, multi-asset nodes—capable of delivering flexible services to both the customer and the grid. To unlock widespread participation, we need to design business models, controls, and incentives that reflect this multi-asset orchestration potential, not just isolated EV flexibility.

Innovative business models are already gaining traction, particularly in Europe. The Mobility House and Octopus Energy offer free EV charging in exchange for access to the vehicle’s battery during peak grid events—a model that turns flexibility into a form of currency.[4] Others are pursuing Charging-as-a-Service offerings, bundling hardware, software, and maintenance into a simple subscription. In fleet applications, Highland Electric Fleets is pioneering Transportation-as-a-Service model in the school bus segment, incorporating V2G value streams directly into the financial case for electrification—by reducing total cost of ownership and offering new revenue from grid services.[5]

These models reduce friction for users while creating scalable value propositions for both EV owners and the grid. To succeed, they must be underpinned by clear market rules, simple enrollment processes, and platforms that can aggregate and optimize across thousands of vehicles in real time.

4. Utility Engagement Is Essential

In the early days of solar, many utilities resisted distributed generation, viewing it as a threat to their traditional business models. It wasn’t until policy mandates, regulatory pressure, and evolving business strategies aligned that utilities began to support distributed solar more actively—by streamlining interconnection processes, implementing virtual net metering for community solar, and incorporating DERs into broader grid modernization efforts.

The same will likely be true for V2G. While some utilities are beginning to recognize the value of EVs as flexible grid assets, voluntary efforts alone won’t be enough to achieve scale. Policymakers and utility commissions have a critical role to play in directing this transition.

Maryland offers a promising example. Under the DRIVE Act, the state’s Public Service Commission is requiring utilities to develop and implement programs that enable bidirectional charging and V2X services.[6] This type of regulatory leadership is essential to overcome inertia, clarify utility roles, and ensure that V2G becomes an integrated part of grid planning and operations.

Without clear direction from regulators, utilities may continue to delay or limit engagement with V2G. With it, they can become essential partners in building a cleaner, more resilient energy system.

The Role of AI in Accelerating V2G

Unlike during the early days of distributed solar, today’s V2G deployments can leverage advanced data analytics and AI-powered orchestration platforms to manage complexity at the grid edge. Artificial intelligence is often described as a forecasting tool—predicting EV availability, charging behavior, and grid needs. And while forecasting is important, it’s only part of the picture.

The real challenge lies in dynamically managing trade-offs between competing priorities at a given site: ensuring fleet readiness, delivering grid services, capturing solar overgeneration, and managing building loads—all within a limited electrical capacity.

Platforms like the one Kaasai is developing in the UK go beyond forecasting.[7] Their orchestration engine performs real-time dispatch arbitration across co-located assets—EVs, BESS, solar PV, and building systems—to optimize value while respecting operational constraints. This kind of intelligent coordination is essential to making V2G both scalable and reliable, especially as more hybrid microgrids emerge that combine V2X with other distributed energy resources.

In this context, AI becomes less about prediction and more about real-time decision-making—allocating flexible capacity where it provides the most value at any given moment.

Still, while AI-enabled orchestration will be central to unlocking the complexity and value of V2G, it is not a silver bullet. Technology alone won’t drive adoption without clear market signals, equitable incentives, and trusted partnerships between fleet operators, utilities, and technology providers.

Conclusion: From Promise to Reality

Despite its promise, V2G still faces familiar barriers: concerns over battery life, unclear long-term value, regulatory friction, and limited awareness. But we’ve been here before.

The distributed solar sector taught us that with the right mix of standards, policies, business models, and stakeholder engagement, transformational change is possible—and fast.

By applying those lessons and tapping into the additional potential of intelligent software systems, we can accelerate V2G adoption and realize its full value. That will require policymakers, utilities, industry leaders, and innovators to align around a shared vision—and act. With coordinated action, V2G can quickly evolve from pilot projects to a vital component of a cleaner, smarter

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[1] See Steve Letendre and Richard Perez, 2006, Understanding the Benefits of Dispersed Grid-Connected Photovoltaics: From Avoiding the Next Major Outage to Taming Wholesale Power Markets, available at Understanding the Benefits of Dispersed Grid-Connected Photovoltaics: From Avoiding the Next Major Outage to Taming Wholesale Power Markets in The Electricity Journal, available at https://www.sciencedirect.com/science/article/abs/pii/S1040619006000753.

[2] See Blake Matich, 2023, Solar-Powered Cannabis Cultivation in pv magazine, available at https://pv-magazine-usa.com/2023/04/10/solar-powered-cannabis-cultivation/.

[3] See Utility Dive, January 17, 2025, Sonnen, SOLRITE Energy launch grid-optimizing virtual power plant in Texas available at https://www.utilitydive.com/news/sonnen-solrite-energy-grid-optimizing-virtual-power-plant-vpp-texas/737693/.

[4] See Mobility House, October 22, 2024, Charge for Free – Renault Group, Mobilize and The Mobility House launch Vehicle-to-Grid in France, while Germany is establishing the regulatory framework, available at https://www.mobilityhouse.com/int_en/our-company/newsroom/article/charge-for-free-renault-group-mobilize-and-the-mobility-house-launch-vehicle-to-grid-in-france-while-germany-is-establishing-the-regulatory-framework and Octopus Energy June 24, 2025, Octopus and BYD make waves with all-inclusive car and V2G charging bundle, available at https://octopusev.com/resources/news/octopus-and-byd-make-waves-with-all-inclusive-car-and-v2g-charging-bundle.

[5] See PR Newswire, August 25, 2022, Highland Electric Fleets Coordinates Electric School Buses’ Summer Job – Supporting Local Grid with Vehicle-to-Grid Technology available at https://www.prnewswire.com/news-releases/highland-electric-fleets-coordinates-electric-school-buses-summer-job–supporting-local-grid-with-vehicle-to-grid-technology-301611928.html.

[6] See Utility Dive, April 8, 2024, Bidirectional EV charging, VPP bill passes Maryland Assembly, heads to governor’s desk, available at https://www.utilitydive.com/news/bidirectional-ev-charging-virtual-power-plant-vpp-bill-passes-maryland-assembly/712548/.

[7] See Kaasai, Intelligent Asset Orchestration for a Connected World, available at https://www.kaasai.com/.