The growing number of EVs in India will also need more charging stations across the country. In this post, let’s find out How To Set Up Electric Car Charging Station in India.
The adoption rate for EVs is quite fast in India. This is partially due to the Indian government’s aggressive push for electric vehicles. However, the EV segment still accounts for a small share of the market and faces multiple challenges. This includes a lack of EV charging infrastructure. Currently, EV companies are attracting only a limited segment of buyers. As the number of EVs increase, there might be chaos around charging spots However, the growing segment also brings new opportunities. Setting up an EV charging station now can lead to significant returns in the near future. You do not even need a license as of now. Also, there are multiple charging technologies to choose from. In this post, let’s find out How To Set Up Electric Car Charging Station in India and How Much Does It Cost?
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Is There a High Demand For EV Charging Stations in India?
The Indian government is offering many incentives to encourage people to purchase electric cars. However, the lack of EV charging stations is a big hurdle. Now, the officials have come up with a plan to create a robust charging grid in the country. The new scheme includes the creation of charging stations every 100 kilometers of highway (on both sides). Additionally, an electric highway is also under construction. It will connect Delhi to Mumbai. Still, this only includes a small percentage if Indian roads. Also, the primary demand for EV charging stations is from metro cities like Mumbai, Delhi, Chennai, Bangalore, and Hyderabad. In terms of supply and demand, there is a huge gap.
How To Set Up Electric Car Charging Station in India?
As of now, setting up an EV charging station is quite easy in India. According to the latest guidelines issued by the Ministry of Power, anyone can establish an electric vehicle charging station by meeting simple guidelines. The cost depends on the type of charing. You can choose from multiple electric car chargers. The Level 1 chargers are the most affordable. However, they charge the battery packs slowly. On the other hand, the Level 3 chargers can charge very quickly as they use DC power. Despite being expensive, they are most popular and useful.
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Government Initiatives and Requirements
As mentioned before, the Government of India is encouraging EV products and EV infrastructure. The biggest step is the removal of any license requirements to build EV charging infrastructure. Additionally, you can choose any charger type to invest in. Also, it is compulsory for electricity boards to provide new EV charging stations with the connection on priority. You can get a new connection within 7 days in metro cities, 15 days in other municipal areas, and 30 days in rural areas. You can source power from any authorized service provider and use any technology as long as you meet the official safety standards. However, the Government requires all EV charging stations to tie up with at least one Network Service Provider for online booking of charging slots.
Types of EV chargers in India
Indian charging stations for electric cars are mandated to follow any of the two international standards and one domestic standard. This includes Japanese CHAdeMO, European CCS, and India’s Bharat AC/ DC standards. Here’s a list of specs of different charger types:
| S. No | Charging Station | Voltage (V) | Power (kW) | Type of Vehicle | Type of compatible charger |
| 1 | Level 1 (AC) | 240 | <=3.5 kW | 4w ,3w,2w | Type 1, Bharat AC-001 |
| 2 | Level 1 (DC) | >=48 | <=15 kW | 4w,3w,2w | Bharat DC-001 |
| 3 | Level 2 (AC) | 380-400 | <=22 kW | 4w,3w,2w | Type 1, Type 2, GB/T ,Bharat AC-001 |
| 4 | Level 3 (AC) | 200-1000 | 22 to 4.3 kW | 4w | Type 2 |
| 5 | Level 3 (DC) | 200-1000 | Up to 400 kW | 4w | Type 2, CHAdeMO,CCS1,CCS2 |
Choosing a charger based on ease of use, longevity, compatibility, and safety is highly advisable. The DC chargers seem like a better investment currently. Let’s take a look at the cost of setting up an electric charging station in India.
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How Much Does it Cost to Set Up EV Charging Station in India?
For a decent DC fast charger setup, you will have to invest more than Rs 10 lakh. The cost multiplies with the number of chargers you add. Depending on the type of installed chargers, the cost could easily go up to Rs 40 lakhs. Additionally, you need to add the cost/ rent of land for the paring and charging process. Here’s a rough estimate EV charging station setup cost with a supply of 250KVA EV Stations.
| Charger Type | CCS – 60kW | CHAdeMO – 60kW | Type 2 AC – 7/22kW | Bharat DC-001 – GB/T | Bharat AC-001 |
| Approximate Cost (in INR) | 12,50,000 | 12,50,000 | 1,00,000 | 2,40,000 | 60,000 |
- Operational cost: Software maintenance, Technical maintenance, Manpower, etc.
- New Electricity Connection (250 KVA): Rs 7,50,000 /-
- Civil Works: Rs 2,50,000 /-
- EVSE Management Software + Integration: Rs 40,000 /-
- Technicians, Manpower, Maintenance, etc: Rs 3,50,000 /- yearly
- Advertising and Promotion: Rs 50,000 /-
- Land Lease (if the land is at lease): Rs 6,00,000 /- yearly
- Total Approximate: Rs. 40,00,000 /- (First year including setup and if the land is at lease)
- Annual maintenance from the second year: Rs. 10,00,000 /- (Including land lease)
On a leased land, setting up an EV charging station with one charger of each type will roughly cost you more than Rs 50 lakh. However, government subsidies can offer some relief.
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What Infrastructure Does EV Charging Station Require?
Setting up an electric vehicle charging station requires serious infrastructure. This includes electricity sourced from the grid and necessary approvals. Here’s a detailed list of requirements for setting up an EV charging station in India:
- Transformer and subsequent substation
- 33/11KV cable and supporting equipment for metering/termination
- Enough space for entry, parking and exit of electric vehicles
- Enough electric charging points to charge multiple vehicles at once
- Local certifications based on state requirements
What Is The Revenue Model For EV Charging Stations in India?
As the setup process requires a huge investment, this is the most important segment of this article. Let’s take a realistic look at the revenue model for EV Charging Stations in India and what to expect in 5 years. In this case, we look at the expected return for an initial investment of Rs 40 lakh and up to 1000 kWh units a daily consumption of electricity. Here’s how much you can expect for multiples of 360 days at a flat rate of Rs 10 per unit.
- 1000 kWh per day for 1st year: 1000x360x10 = Rs 36,00,000
- 1000 kWh per day for 2nd year: 1000x360x10 = Rs 36,00,000
- 1000 kWh per day for 3rd year: 1000x360x10 = Rs 36,00,000
- 1000 kWh per day for 4th year: 1000x360x10 = Rs 36,00,000
- 1000 kWh per day for 5th year: 1000x360x10 = Rs 36,00,000
- Total Revenue in 5 years: Rs 1,80,00,000 /-
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Conclusion
Currently, electric car sales are on the rise in India and this trend is bound to continue as more options are available in the market. As more and more EVs hit Indian roads, they will need more electric vehicle charging stations. Unfortunately, very few people can afford to set up a new station from scratch. There is also a basic lack of information about this segment in the country. Hence, the early movers will have a significant advantage. If you can make the initial investment, an electric vehicle charging station can turn out to be a very profitable business.
FAQs
As the EV market in India is witnessing a healthy growth, there’s been a corresponding increase in the demand for EV charging stations. This demand should, in fact, witness an exponential rise in the coming years. In such a scenario, the EV charging station business is bound to yield healthy profits.
As long as you are fine with a high initial investment cost, the EV charging station business can turn out to be pretty profitable in the long run. This is because public EV charging facilities are bound to witness a high demand with a rise in the sale of electric vehicles.
