General Motors on Tuesday announced it’s releasing a software update that allows some electric vehicle (EV) owners to send power back to the electric grid.

The update allows owners of GM’s vehicle-to-home energy system, which allows the EV to power the home during a blackout, the expanded capability of sending electricity to the power grid.

Owners of the system would be able to sell power from their vehicle back to utility providers at times when demand is high, with GM getting a portion of the proceeds. EVs are viewed as an untapped resource for balancing the electric grid to meet surging demand from AI data centers as well as extreme weather events. 

GM said that it alone has over 250,000 bidirectional capable vehicles on U.S. roads at this time, while it will include the vehicle-to-grid technology in all planned EVs going forward. 

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GM’s vehicle-to-grid energy program would let consumers charge more cheaply and be compensated when their EV’s power is sent back to the grid to support it during peak demand. (Megan Varner/Bloomberg via Getty Images)

It said that the quarter-million GM EVs that are capable of vehicle-to-grid energy transfers currently have the storage capacity to help power 120,000 homes for up to one week. 

GM said that it’s actively testing vehicle-grid integration technology through a partnership with Pacific Gas and Electric Company (PG&E), and it expects that by 2030 there will be over 52,000 GM EVs actively participating in grid-balancing protocols.

It’s also conducting tests in Michigan with DTE Energy, using the homes of GM employees, to grow reliable backup capacity in a way that suits the preferences of home and EV owners, which GM Energy Vice President Wade Sheffer said is a “win for customers, automakers, and utilities.”

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“Maintaining a safe, reliable, and affordable grid is paramount. This transition won’t be easy, and we deeply respect the challenge of balancing day-to-day grid reliability with rapid innovation,” Sheffer said in a letter, adding that the company sees three areas in which utilities, regulators and automakers can simplify the path forward.

Those include boosting the enrollment of customers in utility programs by GM and industry partners, educating them on EV grid support and the value in utility programs and rates, with best practices developed amid its ongoing regional pilot projects.

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GM aims to have over 50,000 of its EVs participating in grid-balancing by 2030. (Nick Lachance/Toronto Star via Getty Images)

GM noted that consumers will be more motivated to participate when given clear and appropriate incentives, such as expanding localized, time-of-use tariffs, allowing EV owners to charge cost-effectively during energy surplus and receive appropriate compensation for supporting the grid during peak strain or times of need.

GM also said that streamlining paperwork, engineering reviews and utility interconnection processes to boost consumer confidence in being able to easily purchase and install a bidirectional charger.

“It’s time for us to look at parking lots and driveways across our communities as a massive, distributed power asset waiting to be integrated. By working together, we can help secure an affordable, reliable, and resilient energy future for everyone,” Sheffer’s letter said.

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Reuters contributed to this report.