Charging StationsFeatured Post

What is the cost of setting up an EV charging station in India?

11
Cost of setup Electric Vehicles Charging Station in India
Cost of setup Electric Vehicles Charging Station in India

       First and foremost, the Indian government has made it clear that any individual is free (de-licenced) to set up an electric charging station throughout the country, provided the station meets the standards of the power ministry.

        So, if you are planning to set up your own EV charging station, you just have to follow the minimum infra requirements and find the right vendor and the right location.

Understanding Types of Electric Vehicle Chargers

        There are various types of EV chargers; Level 1 is the basic one with slow charging speed. The most popular is the Level 3 type charger, which uses DC current and has fast charging speed.

Step-by-step Guide for Setup of EV Charging Station in India

  1. Understanding the worthiness of investing in an EV charging station
  2. Government initiatives
  3. Costing for setup
    1. Charger cost
    2. Electricity & Software cost
    3. Infrastructure cost
    4. Manpower & Maintainance cost
    5. Advertising cost
  4. Infrastructure setup requirements
  5. Business Revenue Model

Is it Worth Investing in setting up EV Charging Station in India?

As per the infrastructure guidelines set by the government, it is compulsory to set an EV Charging station at every 3km in cities and 25kms on Highways on both sides. For long-range and heavy-duty vehicles, there should be a charging station at every 100kms on both sides of the road (mostly Highways). Also, India working on developing Delhi to Mumbai electric highway to boost industrial transport.

At present we are nowhere near the guidelines set (as there are almost negligible EV charging stations in India) and we can see there is a HUGE requirement of charging stations at the moment. 

We can see the requirement is huge but is the demand really there? Well, the answer is YES (in metro cities like Bangalore, Chennai, Hyderabad, Mumbai & Pune).

Indian Government in Electric Vehicles

Indian Government initiative for Electric Vehicles

Government Initiatives

     Under the implementation of FAME scheme Phase 2, Government of India is planning to install around 1000+ Electric Vehicle charging stations before 2023 and has already asked for bids from companies.

Cost of Setting up an Electric Charging Station in India

            Cost of EV charging stations varies from Rs. 1 Lakh to Rs. 40 Lakhs depending on the types of chargers. The chargers you install will depend on the kind of budget you have. However, considering a broader scenario and a supply of 240V EV Station below is the estimate.

Charger TypeCCSCHAdeMOType 2 ACBharat DC-001Bharat AC-001
Approximate Cost15,00,00015,00,0001,25,0002,40,00070,000

 

  • New Electricity Connection (250 KVA): 7,50,000 /-
  • Civil Works: 2,50,000 /-
  • EVSE Management Software + Integration: 40,000 /-
  • Technicians, Manpower, Maintenance etc: 3,50,000 /- yearly
  • Advertising and Promotion: 50,000 /-
  • Land Lease (if the land is at lease): 6,00,000 /- yearly

Total Approx: 40,00,000 /- (First year including setup and if the land is at lease)
Annual maintenance from the second year: 10,00,000 /- (Including land lease)

Infrastructure of EV Charging Station

The infrastructure of EV Charging Station

Minimum Infrastructure Requirement for EV Charging Station

  1. A transformer with subsequent substation must be installed along with safety equipment
  2. For the purpose of metering/ termination, there should be a 33/11KV Cable with related equipment.
  3. Appropriate Civil works should be there
  4. There should be adequate space for charging and Entry / Exit of Vehicles
  5. Necessary local certifications, if any required. (Varies state to state)

Understanding the Business (Revenue Model)

        Revenue projections are something which we do not have control on. But we can assume a scenario and work out a feasible projection for the next 5 years.

If we take the above investment of Rs. 40 Lakhs, we get approximate of 3,000 kWh per day EV power for consumption.

        Considering Electricity Utilization of (for 360 days and a fixed margin of Rs. 2.5 per consumption):

  • 600 kWh per day for 1st year: 600x360x2.5 = 5,40,000/-
  • 1200 kWh per day for 2nd  year: 1200x360x2.5 = 10,80,000/-
  • 1500 kWh per day for 3rd  year: 1500x360x2.5 = 13,50,000/-
  • 2000 kWh per day for 4th year: 2000x360x2.5 = 18,00,000/-
  • 2400 kWh per day for 5th year: 2400x360x2.5 = 21,60,000/-

Total Revenue for 5 years: 69,30,000 /-
EVSE software management FEE of 10% on margin: 6,93,000/-

Revenue for 5 years comes as 62,37,000 /-  (Excluding the annual maintenance)

Conclusion

     Although there are only 1% EVs in India as compared to traditional vehicles, the sale of EVs are going upwards and the requirement for charging stations is rising daily.

          If you have the investment capacity and are willing to become an entrepreneur with a broader vision, then the answer is YES. Now is the time to invest in Future, to invest in EV Charging Stations.

Interested in setting up your charging station business in India? Visit EV Business Opportunity.

Arjun Pawar
Arjun is a civil engineer and has 5 years of corporate experience in purchase & contracts. He is owner of a marketing company & has stakes in a construction firm. Arjun is an author of Novel “Masters of Lygrenn”. He is passionate about business and loves reading & writing in his free time. Schedule meeting with me

Electric Vehicle Industry in India | Government Initiatives & Manufacturers

Previous article

Tata Tigor EV – Features and Variants

Next article

You may also like

11 Comments

  1. Thanks for the very detailed essay /notes on the charging stations. Loved it for its depth and information about costs/revenue and the obvious obstacles.
    I would like also compliment Mr. Akshay Nimbalkar on his article under ev-duniya, and the overall excellent coverage of this crucial aspect of the EV industry. Congratulations

    1. Thanks Narayana Krishnan.
      Stay tuned for more updates.
      We have webinar tomorrow on topic ‘Future of electric vehicles post COVID in India’
      Link: EV Webinar

    2. According to your account every year maintenance cost of the power station comes 10 lacs,
      Then after total revenue we got 62 lacs, in that maintenance charge 50 lacs – balance 12 lacs only so up to 5 years we got by investing 40 lacs 62 lacs we have get profit only yearly 3 lacs.
      Are you you are recommenting me to invest are join in this business?
      Why don’t you give another idea?
      Dear you have to give new ideas to attract the customers or entrepreneurs or investor to get even bank interest for their investment,
      Without charging station you should not improve E vehicle should not improve.
      Thanking you.

  2. can i have some more detail about it

    1. Yes, sure!
      Please fill this form, our experts will contact you soon EV Charging Station Business Opportunities

  3. I am planning to set up a petrol pump ? would it worth ? or EV can replace it

    1. If you are planning to start next year, definitely go for EV charging station.

  4. Yes I am also interested to start the EV charging station in Telangana State at Adilabad District for ECO friendly nature.

    1. Please fill the associate with us form or mail us on arjun@evduniya.com

  5. I am in Amsterdam and i see most the houses here have EV charging setup out side of their House and they charge the vehicle whenever they want and it is very convenient to the people when thought of india like if see a petrol pump there will be a huge line behind honking to say move on and over come that kind of Scenario is there any possibility in india to setup CCS2 type of charging cord using solar power panels and any other means which makes the life easy with EV Vehicles

    1. Yes, We are working on it.

Leave a reply

Your email address will not be published. Required fields are marked *