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

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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 & Maintenance 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, Delhi, 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. 

Various state governments are giving subsidies on EV Charging Station.

Cost of Setting EV Charging Station in India:

            Cost of setting EV charging station in India varies from Rs. 1 Lakh to Rs. 40 Lakhs depending on the types of chargers and investment one is willing to make. However, considering a broader scenario and a supply of 250KVA EV Station below is the estimate.

Charger Type CCS – 60kW CHAdeMO – 60kW Type 2 AC – 7/22kW  Bharat DC-001 – GB/T Bharat AC-001
Approximate Cost 12,50,000 12,50,000 1,00,000 2,40,000 60,000

 

  • 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 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)

Nikol EV

Nikol EV to setup 5000 chargers by 2025

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 500-1000 kWh per day EV power for consumption.

        Considering Electricity Utilization of (for 360 days and a fixed margin of Rs. 10 per consumption).

  • 600 kWh per day for 1st year: 600 x 360 x 10 = 21,60,000/-
  • 600 kWh per day for 2nd  year: 600 x 360 x 10 = 21,60,000/-
  • 600 kWh per day for 3rd  year: 600 x 360 x 10 = 21,60,000/-
  • 800 kWh per day for 4th year: 800 x 360 x 10 = 28,80,000/-
  • 1000 kWh per day for 5th year: 1000 x 360 x 10 = 36,00,000/-

Total Revenue for 5 years: Rs. 1,29,60,000 /-
EVSE software management FEE of 5% on margin: Rs. 5,94,000/-

Revenue for 5 years comes as Rs. 1,23,66,000 /-  (Excluding the EVSE software management fee)

Note: Central government and various state governments are giving subsidies on EV charging stations.

Conclusion

     Although there are only 2% 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 D Pawar
Arjun is an engineer having 9+ years of corporate experience. 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

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177 Comments

  1. I am interesting in EV charging center, but how to get certificate i dont know anything please guide me peroperlly

    thanks

  2. I am interesting in EV charging center, but i dont know anything please guide me peroperlly

    thanks

    1. I am interesting in EV charging center, but i dont know anything please guide me peroperlly

    2. Article is very informative.

  3. my name is sukhpreet Singh nd i am from delhi I am interesting but i dont know anything please guide me peroperlly

    thanks

    1. Hello please help to setup ev statuon

  4. I am interesting in EV charging center, but i dont know anything please guide sir my name is Nitin Akolkar my Mo no is 8275317686
    Add ..Aurangabad Maharashtra

  5. My self B. Sasikumar.
    Interested to setup a facility for charging station.

    Pl advice.

  6. Tell me proper procedure to start a ev charging station in up

  7. I am interested charging station open in my area so u contect me

  8. I am interesting in EV charging center, but i dont know anything please guide me peroperlly

      1. I am interest in charging station open in my area but I don’t no any thing please guide me properlly

  9. Interested in setting up a EV charging unit . I am having a 6800 sq.m. space available with me in MIDC sadavali Dist. Ratnagiri , Maharashtra . Road front of approx 120mts ~state highway.

    1. dear sir, please fill the contact inquiry form Contact us

  10. I am interested to plan charging station in Bangalore or hassan so please tell me the procedure step by step

  11. Please contact us. M interested in charging station.

  12. Intrested for ev charging station opening in kanpur uttar pradesh

  13. I am interested for the EV charging station can u please give me the details how to setup the station and how to get the permission ASAP

  14. how much land is required to set EV station for above investment

  15. I am interested to set up an EV charging station in Purulia Distruict , West Bengal on NH . Pls contact me 7001724477.
    Thanking You

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