The power regulator Ofgem is planning four smart grid cities, which will help consumers make the switch to green cars.
A total of £500 million has been set aside from customers' utility bills to fund the rewiring of the UK's electricity system, to enable it to cope with the demands of green cars, reports the Guardian.
In the chosen towns and cities, Ofgem will pay for households to have the new energy technologies installed and will continue to monitor how effectively it works.
Steve Smith, Ofgem's managing director of markets, told the Guardian that the scheme paved the way for companies to join forces with government schemes and would help facilitate the roll out of electric cars.
As these kinds of vehicles are generally charged at night they would work well with the smart grid city plan, he added.
Philip Wolfe, director general of the Renewable Energy Association, said: "This is encouraging news.
"The electricity network has been designed for a centralised energy approach for a few large scale power stations dotted around the country feeding out towards users somewhere down the line in a dumb grid."
Meanwhile, Japanese manufacture Nissan revealed its first solely electric-powered vehicle at the beginning of this month.
The Leaf is billed as an affordable green option that can travel more than 100 miles before needing a recharge.
Exact pricing for the car has not yet been confirmed.
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