Do you want to start an EV Charging Station business in India and looking for information regarding the same? Here’s a comprehensive article that will answer all of your questions.
Setting up an EV charging station is surely the right choice if you are looking for the best new business chances in India. The demand for charging stations for electric vehicles (EVs) is increasing at an alarming rate.
Electric car charging stations are on the list of top business possibilities in India for the decade, thanks to rising environmental consciousness and the introduction of electric automobiles. Similar to how opening a gas station or a biofuel station can provide an unending and everlasting business opportunity in India and around the world, EV charge stations are on their way to seizing the worldwide market in the next years.
What is an EV Charging Station?
First and foremost, let’s define what an EV charge station does. On city streets, you may have seen electric two-wheelers, vehicles, and e-rickshaws. But where do these vehicles obtain their electricity? Some electric car owners charge their vehicles at home. In the case of the Tata Nexon EV, the firm installs the charging station at the customer’s home free of charge. However, not all businesses offer a dedicated charging station with the necessary security features in the parking lot. To provide on-road charging services, several charging stations are necessary.
What are the different types of EV chargers?
Type 1: It’s a single-phase plug that can charge up to 3 kW of power. It converts AC electricity to DC and gently charges the vehicle from a home charging point.
Type 2: With a 400 volt AC power source, it is a three-phase connector capable of handling power levels ranging from 7.4 kW to 43 kW. This charger works with both AC and DC charging systems, as well as automobiles equipped with CCS connections.
Combined Charging System: As the name implies, these chargers are capable of handling both Type 1 AC and Type 2 DC rapid charging. Combo chargers can take up to 350 kW of electricity.
CHAdeMo Charger: It’s a quick charger that can handle up to 400 kW of power at 1000 V and 400 A direct current. CHAdeMo is an abbreviation for ‘CHArge de MOve,’ which is recognized by more than 70 nations throughout the world.
GB/T Charger: The Indian government recommends this sort of charger. The Bharat DC 001 standard produces 15 kW at 72-200 V, while the Bharat AC 001 produces 10 kW at 230 V.
How much does it cost to set up an EV charge station?
When compared to other business ventures, the cost of establishing an EV charging station is quite minimal. The Indian government has said that no license is required for the installation of electric vehicle charging infrastructure as long as it meets the requirements set forth by the ‘Ministry of Power.’ As a result, there is no need for a separate license to transmit, distribute, or trade power for the purpose of charging electric car batteries.
As a result, the cost of launching an EV charging station only comprises the setup costs, which include the costs of chargers, electricity, software, infrastructure, advertising, staff, and maintenance.
Depending on the types of chargers you want to install, the cost of installing an EV charging point ranges from Rs. 1,00,000 to Rs. 45,00,000.
The cost of a new electrical connection, civil work, technicians and employees, maintenance, advertising, marketing, EVSE management software and integration, and land lease are all included in the basic cost charges.
A step-by-step guide to starting an EV charging business
The electric car charging station business opportunity is one of India’s most popular business types. The number of electric vehicles on the road much outnumbers the number of electric vehicle charging facilities. Some state governments have even mandated that charging stations must be installed in the business and residential complexes, with a fraction set aside for electric vehicles. Here’s everything you need to know about setting up an electric vehicle charging station in your city.
As previously stated, you do not require a government license to begin this business. However, we recommend that you check with your state government to see whether any local qualifications are required. All you need is the bare minimum of infrastructure to put up an EV Public Charging Station.
What equipment do you need?
- A transformer with the subsequent substation.
- Civil works as required.
- Sufficient parking space.
- Minimum five ISO-certified charger types/ machines.
- Minimum required safety equipment.
- A 33/11 KV cable with the required equipment for metering and/ or termination.
Other basic requirements:
- Sufficient manpower, including technicians.
- Drinking water.
- Snacks counter
Cost of Setting Electric Vehicle Charging Station in India
The cost of installing an EV charging station in India varies from Rs. 10 lakhs to Rs. 40 lakhs, depending on the type of chargers used and the amount of money required. Based on a more general scenario and a supply of 250KVA EV Stations, the following is a rough estimate.
|Charger Type||CCS (60kW)||CHAdeMO (60kW)||Type 2 AC (7/22 kW)||Bharat DC (GB/T)||Bharat AC|
|Cost||Rs. 12,50,000||Rs. 12,50,000||Rs. 1,00,000||Rs. 2,40,000||Rs. 60,000|
- Electricity Connection (250 KVA): Rs. 7,50,000 /-
- Construction work: Rs. 2,50,000 /-
- EVSE Management Software: Rs. 40,000 /-
- Technicians, Manpower, Maintenance, etc: Rs. 3,50,000 per year
- Marketing and Promotion: Rs. 50,000 /-
- Land Lease: 6,00,000 /- yearly
Total Approx cost: Rs. 40,00,000 /-
Annual maintenance from the second year: Rs. 10,00,000 /-
ROI of Electric Vehicle Charging Station Business
Let’s run some numbers for the next five years to better understand the revenue model.
If we estimate Rs. 40 lakh upfront expenditure, we can expect to use 500-1000 kWh of EV electricity every day. Let’s imagine your daily energy use is 1000 kWh.
Let’s pretend that a charging station is operational for 360 days on a fixed margin of Rs. 10.
- 500 kWh per day for 1st year: 500x360x10 = 18,00,000/-
- 500 kWh per day for 2nd year: 500x360x10 = 18,00,000/-
- 800 kWh per day for 3rd year: 800x360x10 = 28,00,000/-
- 900 kWh per day for 4th year: 900x360x10 = 32,40,000/-
- 1000 kWh per day for 5th year: 1000x360x10 = 36,00,000/-
Total: Rs. 1,32,40,000/-
Is EV charging station a profitable business?
One of the best business prospects in India is EV home charging and public charging stations. Though the traditional car industry continues to rely on and rely on the client category, the electric vehicle sector is the next generation’s desire.
The government has also taken a number of steps to encourage the purchase of such vehicles. The GST rate on electric vehicles and batteries has been cut to 5%. On the interest rate paid on their loans, income tax savings of up to Rs. 1,50,000 are available.
Aside from that, state governments offer extra incentives like exemptions from road taxes, registration fees, stamp duty, and utility taxes, among other things. Increased sales of such vehicles will, without a doubt, necessitate a greater number of charging stations.
The government has established infrastructure guidelines mandating the installation of an electric vehicle charging station every 3 kilometers in cities and every 25 kilometers on both sides of major roads. It has also been stated that such stations for long-distance and heavy-duty trucks should be located every 100 kilometers on both sides of highway roadways. In practice, however, our infrastructure lacks even 1% of the essential stations. In addition, the Indian government has encouraged companies to submit bids for the installation of over 1000 electric vehicle charging stations by 2023. EV charging stations are a good arrangement to invest in if you are a sensible far-sighted entrepreneur with significant cash and patience.
So now we believe you have all the information required to know how to start an EV Charging Station Business in India.
If you own land and want to set up an EV charging station, you can contact All India EV
1 thought on “How to start an EV charging station business in India”
Am looking for start EV charging station with solar energy in the south part of India(Kerala, Kozhikode).
Kindly advice me all about technical and commercial aspects.