You can put the prius into and out of neutral all you want. If you put it into nuetral when the engine is stopped, the engine will stay stopped even if you then exceed the normal engine-on speed. But you don't get any regenerative braking in neutral, so put it back in D before braking.
Above ~10mph the prius will regen slightly if you take your foot all the way off the accelerator so you have to give it some pedal to truly coast. If you wanted another electronic project - automating a true pedal-off coast would be nice. Neutral works, but again if you suddenly have to brake you don't recapture any of that energy.
An automated pulse and glide setup would be awesome too - set a high & low speed and have it accelerate optimally between the two and coast down...
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