By Jesse Berst

The idea is to store low-cost, off-peak electricity in the vehicle’s battery and for use by the home during peak consumption times. The power flow is controlled via communication between vehicle, charging stand and a home energy management (HEM) system. The HEM system would need some kind of schedule or signal from the utility to know when to charge and when to send power back.

Nissan had previously announced a similar V2H system for its Leaf electric vehicle.

Until now, most of the press has been about the vehicle-to-grid (V2G) concept. At Smart Grid News, we have long expressed skepticism about the future prospects of V2G, which would require a special outlet or connection to allow power to flow back into the grid. V2H offers virtually the same benefits to grid stability, but without the extra connection expense.

Both V2G and V2H will shorten the life of the vehicle battery by charging and discharging it more often. For this reason, it is likely to appear first (and perhaps only) in regions with high-cost power or acute power shortages. The idea is being tested in Japan because of that country's electricity shortfalls caused by the decommissioning of its nuclear reactors.

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Jesse Berst is the founder and chief analyst of Smart Grid News.com, the industry's oldest and largest smart grid site. A frequent keynoter at industry events in the U.S. and abroad, he also serves on advisory committees for Pacific Northwest National Laboratory and the Institute for Electric Efficiency. He often provides strategic consulting to large corporations and venture-backed startups. He is a member of the advisory boards of GridGlo and Calico Energy Services.