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
- Understanding the worthiness of investing in an EV charging station
- Government initiatives
- Costing for setup
- Charger cost
- Electricity & Software cost
- Infrastructure cost
- Manpower & Maintainance cost
- Advertising cost
- Infrastructure setup requirements
- 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).
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 Type||CCS||CHAdeMO||Type 2 AC||Bharat DC-001||Bharat AC-001|
- 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)
Minimum Infrastructure Requirement for EV Charging Station
- A transformer with subsequent substation must be installed along with safety equipment
- For the purpose of metering/ termination, there should be a 33/11KV Cable with related equipment.
- Appropriate Civil works should be there
- There should be adequate space for charging and Entry / Exit of Vehicles
- 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)
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.