Tech firm with Petaluma ties joins early move to power homes, grid via car batteries

Enphase Energy Inc., with offices in Petaluma, has thrown its hat into a competitive ring by announcing plans to introduce a system to transfer power generated by electric vehicles and home solar systems either into the power grid, or serve as an emergency power source.

Company officials say its new two-way charger, or bidirectional electrical vehicle chargers, is “expected to work with most electric vehicles.”

Enphase successfully demonstrated the system earlier this month and expects to introduce it next year.

With the move, Enphase has joined a short list of manufacturers vying for a share of the vehicle-to-grid (V2G) market that is forecast to reach $28.12 billion by 2026, according to IndustryARC.com, a Furion Analytics market research and consulting firm.

IndustryARC analysts predict the global V2G market to grow at a compound annual growth rate of 4.28% from 2021 to 2026, based on data showing that adoption of electric vehicles worldwide is affecting demand for EV charging infrastructures.

Bidirectional charging only allows direct current to alternating current transfers from solar panels to batteries using inverters. It also can reverse the process using AC-to-DC converters to send power from EV batteries back to a residence to keep lights and appliances running in emergencies, as well as return excess power to the grid for credits or refunds.

“The market for ‘green charging’ options is growing, and Enphase’s bidirectional concept has been well received,” said Mohammad Alkuran, senior director of systems engineering at Enphase. “More new electric vehicles are being designed to include two-way charging systems.”

Sam Fiorani, vice president of Auto Forecast Solutions, said such bidirectional charging technology is still in its infancy.

But “once it becomes mainstream it could revolutionize how EV owners view their vehicles,” he said. “Instead of seeing their cars and pickups as separate from their homes, they could become more integrated into owner’s lives the way the telephone has become over the past decades.”

He said the technology also is seen as an integral part of the next wave of EV evolution — called V2X, the vehicle-to-everything world — that would interconnect transportation and power systems to transfer electricity stored in EV batteries to the grid, buildings, homes and other energy sourcing destinations.

Several EV models available today feature bidirectional charging. They include the Nissan Leaf (ZE1), the Ford 150 Lightning EV pickup and the Mitsubishi Outlander PHEV. Volkswagen also announced its ID4 electric car offering bidirectional charging in January.

Only a handful of manufacturers are producing two-way power conversion devices, such as Autel Maxi Charger V2X, Brek Electronics, Delta V2X, Emporia Energy, Fermata Energy FE-16, Rectifyer Technologies Highbury and WallBox North America.

These advanced chargers are more sophisticated and expensive than regular chargers since they incorporate state-of-the-art power conversion electronics to manage energy flow to and from the vehicle.

More firms are expected to enter this arena as consumers look for sustainable alternatives to fossil fuels and embrace greenhouse gas reduction efforts.

“We’re seeing increased demand for backup emergency power among homeowners who have faced outages due to storms, grid overloads and power failures,” Alkuran said. “These events have prompted many to seek better ways to ensure uninterrupted service enabling them to become more energy self-sufficient. We assist customers in achieving this goal by connecting onsite renewable energy from solar power during the day to be used at night, the next day at home or when driving an EV.”

“Our goal is to enable everyone to have access to this technology,” said Andy Newbold, Enphase communications director.

He said Enphase’s new product will operate on its own when connected to the grid, or through a controller when disconnected from the grid and operated in a standalone mode when power is brought back to the home from an EV.

To provide emergency power in the event of a blackout, the V2H system must be able to detect the grid outage and isolate the home from the network using an automatic contactor (switch). This process is known as “islanding.”

The new Enphase charger will also provide vehicle-to-load (V2L) advantages enabling EV owners to both deploy and redirect an EV’s stored energy.

“Load sharing” is the term applied to the ability of such innovative charging systems to power other devices at home or in another building, including appliances, lights, phone chargers, a TV (for several days), and up to a few days or more for electric stoves, microwave ovens and air conditioners when used one at a time in addition to powering the EV.

“What sets Enphase apart is that our two-way system will be compatible with virtually every vehicle that allows for bidirectional DC charging. It will also export unused stored energy back to the grid, providing potential power utility billing credits for consumers or cash refunds from utility companies,” Alkuran said.

For example, PG&E’s Net Surplus Compensation program, enabled by California Senate Bill 920, allows PG&E and other state utilities to offer payment for surplus energy by a home or business renewable energy system based on readings from those participating in the Virtual Net Energy Metering Program using PG&E’s SmartMeter.

At the end of a 12-month billing cycle, PG&E will pay the customer for net surplus energy at fair market value either by subtracting the credit from their bill or issuing a check if the amount is greater than $1.

Beyond making money by selling excess energy, users can also save by leveraging differential energy tariffs based on cheaper energy stored at night or during off-peak, reduced-rate periods.

Newbold said Enphase plans to sell this product through its network of installers and distributors and is working with electrical contractors to provide certification training.

He said the Enphase bidirectional charger rollout process is proceeding on schedule from completing tests in its own labs to trials at partner sites that will be followed by a larger pool of early adopters and beta sites leading up to a market availability.

Enphase is also having conversations with vehicle manufacturers to ensure that their product is a right fit, with the correct form and functions, Newbold added.

The company is also actively engaged with Underwriter Laboratories, the Institute of Electrical and Electronics Engineers and participates on boards with those further defining this category as well as addressing safety standards and quality issues.

According to Clean Energy News, an EV is essentially a large battery on wheels, larger and more powerful than standard batteries in the past, meaning that bidirectional chargers can enable a vehicle to store less expensive electricity to reduce household costs. Due to its high battery capacity, a fully charged EV could support an average home for several consecutive days or much longer when combined with rooftop solar.

CEN says V2G technology could revolutionize the way power grids operate, with the potential for tens of thousands of electric vehicles to supply power simultaneously during times of peak electricity demand.

According to Tech Crunch, an online news source focusing on high-tech and emerging companies, their survey found that converting the home into a charging station is usually the cheapest way to go, with 80% to 85% of such charging activities taking place at a residence at night. During working hours, 95% of the time cars are in parking lots where public charging stations are being installed.

Another report from that tech news source said one of the biggest hurdles to bringing such new products to market is obtaining safety certifications along with government regulatory and transportation department approvals.

Some concerns with the V2G technology rollout include regulatory challenges and the lack of standard bidirectional charging protocols and connectors. Bidirectional chargers, like solar inverters, are considered to be another form of power generation and must meet all regulatory shutdown safety standards in the event of a grid failure.

Despite industrywide concerns, development efforts are moving forward rapidly at Enphase and are attracting increased consumer attention.

“A growing number of prospective customers along with solar system and battery installers are knocking on our doors, even more these days with the explosion of EVs on the market,” said Newbold. “Today people are well motivated and becoming informed about this two-way technology and are ready to learn how they can offload charging costs.”

Automotive News Reported that Ford, GM and Lucid have joined the Department of Energy’s coalition as part of an effort to design a plan for a widespread V2X – the vehicle-to-everything emerging infrastructure.

Fremont-based Enphase (Nasdaq: ENPH) is a global company and a leading supplier of microinverter-based solar and battery systems, including intelligent IQ8 microinverters and Ensemble energy management technology. It was originally headquartered in Petaluma.

Pricing, product availability and ordering details for its bidirectional EV charger will be announced in 2024. The company has 2,800 employees around the globe and partners with contract manufacturers in Europe, India, Romania and in the U.S.

Enphase reported fourth-quarter revenue of $724.7 million, gross margin of 42.9%, and a non-gross margin of 43.8%. As the end of last year, Enphase had shipped 4.87 million inverters, or approximately 1,952.4 megawatts DC and 122.1 megawatts of IQ batteries, according to President and CEO Badri Kothand.

Special correspondent Gary Quackenbush (Gary.Quackenbush@gmail.com) worked at the Wall Street Journal and headed communications departments at AT& T, Pacific Bell and General Cellular Corporation; was a senior executive at several Silicon Valley high-tech public relations agencies; was West Coast editor for Telecommunications Magazine; and wrote for The Windsor Times and the Sonoma County Farm Bureau.