Panasonic, Omron set to enter Japan's V2H market

Electric vehicle use as home batteries is expected to increase in Japan this year as Panasonic and other companies enter the power system market and existing players expand production.

Panasonic, the market leader in standard EV chargers and solar panels in Japan, will begin selling its vehicle-to-home (V2H) system in February. The product will be marketed by 5,000 business partners ranging from electrical contractors to homebuilders.

Two-way chargers allow electricity to flow both into and out of batteries, and power conditioners convert direct current from batteries to alternating current for use inside homes.

EVs have taken longer to catch on in Japan than in the United States or Europe. However, according to Panasonic, homeowners who are likely to use V2H technology already have solar panels and storage batteries at home.

Adding an EV to the mix allows customers to consume more of the electricity produced by their solar panels, reducing the need for grid purchases at a time when power prices are skyrocketing.

Omron, an electronics manufacturer, will release its V2H system in May. The system, designed by the company best known for medical devices, weighs 25 kilogrammes and can be installed by a single worker.

Sharp also intends to enter the V2H market within the next few years. The global V2H market is in its early stages, and widespread adoption will necessitate standardisation of charging and discharging technology. At the moment, Tesla vehicles are not considered V2H compatible.

Mitsubishi Electric will exit the V2H space in 2021 due to Japan's slow adoption of electric vehicles. However, EV sales in the country are increasing, reaching a new high of 17,771 – or 1% of new vehicle sales – in the first half of 2022.

In Japan, two-way EV chargers alone can cost more than a million yen ($7,600). Subsidies can cover up to half of the cost, with a maximum of 750,000 yen. V2H systems have even more parts. However, as electricity prices in Japan skyrocket, interest in their ability to promote the use of renewable energy has grown. Nichicon, mainly known for producing industrial capacitors, is investing around 2 billion yen to enlarge its Kameoka factory in Kyoto prefecture for V2H systems and home batteries. It aims to open the wing in 2023.

This year, the company also plans to double its production capacity of two-way chargers for V2H systems, which is currently around 1,000 units per month.

Nichicon claims to have a 90% share of Japan's V2H market, which it entered in 2012. It has formed alliances with foreign automakers such as Mercedes-Benz.

"Our order backlog continues to grow," said Chairman Ippei Takeda, citing supply chain disruptions caused by the coronavirus.

When asked if frequent V2H charging and discharging would cause EV batteries to wear out faster, a representative from one V2H technology maker said, "There is some effect, but we believe it is negligible given how durable the batteries are."

According to an automaker representative, V2H has no negative effects on battery life.

V2H systems can serve as an emergency power source during natural disasters. Nissan Motor's top-end Leaf EV carries a 60 kilowatt-hour battery -- as much power as a typical family uses in four days. Its Sakura mini electric vehicle comes with a 20 kWh battery, still larger than the typical home battery in the 5 to 10 kWh range.

V2H system makers say expanding will present a challenge given the lack of universal standards.

"No clear standards have emerged for charging and discharging batteries," Takeda said. "We want to be involved in the rule-setting process."