Used EVs Pull New Duty As Guardians Of The Grid

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Used EVs are the gift that keeps on giving. Bargain hunters can score huge savings on an older EV, but that’s just for starters. As bidirectional charging becomes more common, the up-and-coming crop of used EVs will provide owners and fleet managers with new opportunities to help balance their local grid, build resiliency within their community, and potentially earn some revenue, too.

Tracking Down The Best Used EV Bargains: Depreciation & Battery Quality

CleanTechnica launched a new tracker for the used EV market last month, and scores of readers piled in with tips and comments. Much of the conversation revolved around the relatively rapid depreciation rate for new EVs, an issue that fades to the background in the used car market though it is still somewhat present.

The depreciation issue is still evolving. Last year, for example, researchers at George Washington University presented evidence that the depreciation rate for new EVs is beginning to slow down. They examined 9 million dealer listings for battery-electric and plug-in hybrid vehicles between 2016 and 2022, and they uncovered a link to improvements in battery range over that period.

“[The study] found that older battery-electric vehicles and plug-in hybrid electric vehicles with shorter driving ranges depreciated at faster rates than conventional cars and hybrid electric cars; the one exception being Tesla, whose older battery electric vehicle model held its value better,” explains the GW communications team.

“However, the study also showed the trend is changing — as newer model electric vehicles with higher driving ranges come online, they are retaining their value better than the older models with smaller driving ranges,” they add.

In addition to improvements in battery range, battery lifespan also enters the used EV mix. Initial concerns over rapid battery degradation have been vaporized by a growing body of real-world EV driving evidence demonstrating that EV batteries can last far longer than expected (more examples are here and here).

Used EVs & The Microgrid Of The Future

Bidirectional charging is also beginning to factor into the used EV market, and that’s where things get interesting. In past years, EVs with bidirectional charging were difficult to find. However, more automakers have been adding the technology to more models as the years go by, which means that more EVs with bidirectional charging will be available in the used car market, too.

Bidirectional charging enables EV owners to deploy their car like a roving power generation station. In addition to moving a car from place to place, EV batteries with bidirectional charging can run appliances at a home, tools at a worksite, and recreational equipment on the road, in addition to stepping up for emergency use (see more bidirectional background here).

Bidirectional charging can also be deployed to support local power grids and microgrids, and now here comes Nissan to demonstrate that an older EV can pull its weight in that area, too.

Nissan is participating in an elaborate new microgrid pilot project located at the Redwood Coast Airport in McKinleyville, California. If all goes according to plan a trifecta is in store, with two older Nissan Leafs taking credit for helping to power the facility in case of grid outages, while shepherding more renewable energy into the grid and cutting electricity costs for Humboldt County.

Used EVs, Assemble!

The new microgrid includes a 2021 Nissan LEAF owned by the Humboldt County Aviation Division and a 2020 LEAF donated by Nissan, deployed in an enhanced microgrid managed by the V2X (vehicle-to-anything) platform developed by the US startup Fermata Energy.

“The capacity and capabilities of the microgrid are enhanced to enable the advanced automated grid frequency response demonstration of Fermata Energy’s V2X platform,” explains the California utility PG&E, which is the energy provider for the airport along with the Redwood Coast Energy Authority.

The used EVs are further put through their microgrid paces by a control system developed by the Schatz Energy Research Center at Cal Poly Humboldt. The new system is purpose-built to enable EV batteries to balance solar energy in the microgrid in real time.

The Schatz system overcomes balancing issues that can arise when a microgrid is islanded off from the main grid, and its batteries are almost full or empty. “In those cases, the Schatz Center’s new microgrid control functionality uses small changes in grid frequency to command available car-charger combinations to either inject power into the microgrid to prevent the microgrid battery from becoming depleted or absorb excess solar energy if the microgrid battery is full,” PG&E states.

When not needed for microgrid inputs, both of the LEAFs are on the road doing chores for Humboldt County staff, further adding value to the overall operation.

One More Reason To Buy A Used EV — Or Hold On To Your New EV Longer

As noted by PG&E, the used EV mini-fleet will help offset electricity costs for county taxpayers, and that’s just for starters. “Additionally, the vehicles respond to grid stress events, generating revenue by participating in California’s Emergency Load Reduction Program,” the company explains.

“When the statewide or regional grid is under stress, the V2X system will respond to signals from California’s ELRP. This allows vehicle owners to voluntarily support the statewide electricity grid during periods of stress and earn revenue by sending electricity back to the grid,” PG&E elaborates.

With all this going on, it’s little wonder that used EVs are flying off the lot faster than their ICE counterparts. “EVs, despite cooling momentum on the new-car side, are being scooped up faster than any other powertrain in the used market,” Edmunds reported on November 10.

“Despite limited model availability in 2022 and slower adoption on the new-car side, eight of the 20 fastest-selling 3-year-old vehicles were EVs, underscoring their growing appeal among shoppers seeking value and lower operating costs,” the firm added.

The sudden spurt of activity in the used EV market should help fortify US automakers, some of which have cut back on their near-term EV plans in response to this year’s sudden shift in federal energy policy.

They better act fast. EV startups including Volkswagen’s Scout Motors branch, the Jeff Bezos-backed Slate Auto, and California-based TELO trucks are pushing forward with plans to launch production models in the coming years.

For that matter, Nissan could beat them all to the punch. The automaker is riding high on a three-award showing for the 2026 all-electric Nissan LEAF in the new “Buzz Awards” program hosted by the automotive publisher Valnet Auto, including was named Car of the Year, Best EV, and Best Budget Vehicle.

Photo (cropped): Two older Nissan LEAFs are featured front and center in a new microgrid project that demonstrates the value of used EVs for grid resiliency as well as mobility (courtesy of PG&E via prnewswire.com).