Cost of Setting up EV charging station in India:
India is rapidly moving towards electric mobility, and the demand for electric vehicles (EVs) is increasing day by day. To support the growing number of EVs, the country needs a robust charging infrastructure. Setting up an EV charging station is an excellent business opportunity for entrepreneurs who want to contribute to the country’s green revolution.
Types of EV chargers
In India, an EV charging station needs to follow any of the two international standards and one domestic standard. These include Japanese CHAdeMO, European CCS, and India’s own Bharat AC/ DC standards. Below, we have a table that provides the specs related to these types of chargers.
|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|
One needs to choose the right charger keeping in mind factors such as ease of use, longevity, compatibility and safety. One of the best investments so far are DC fast chargers. Next. let’s take a good look at the cost of setting up an electric charging station in the country.
Cost of EV Charging Station Setup in India
A good DC fast charger setup could cost more than Rs 10 lakh. In case you plan to have, say, 4 of these, one would need to make a high initial investment. This is true especially if you take into account the cost/rent of the land. Furthermore, the investment might vary based on the type of chargers installed. This cost could easily go up to Rs. 40 lakhs. Below, we have a rough estimate of cost of EV charging station setup in India based on a generic scenario and 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|
- 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)
- Operational cost: Software maintenance, Technical maintenance, Manpower,
Roughly speaking, establishing an EV charging station in India with one charger of each type, on leased land, will cost you more than Rs 50 lakh. While some subsidies by the Government give some relief, this is surely an expensive business to get into.
Infrastructure Requirements for EV Charging Stations
Obviously, establishing an electric vehicle charging station will require infrastructure. First of these is, well, electricity. This can be sourced from the grid. However, one would require the necessary approvals from the same. Here is a list of requirements for setting up an EV charging station –
- 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
Understanding the Revenue Model
Now, it’s clear that cost of EV charging station setup is on the higher side. However, before you make an investment, it’s important to understand the revenue model. Here are some rough calculations to help you understand the kind of revenues you can collect in 5 years. For this, we have assumed an initial investment of Rs 40 lakh and a daily consumption of up to 1000 kWh units of electricity. Here are the calculations for multiples of 360 days at a flat rate of Rs 10 per unit.
- 1000 kWh per day for 1st year: 1000x360x10 = 36,00,000/-
- 1000 kWh per day for 2nd year: 1000x360x10 = 36,00,000/-
- 1000 kWh per day for 3rd year: 1000x360x10 = 36,00,000/-
- 1000 kWh per day for 4th year: 1000x360x10 = 36,00,000/-
- 1000 kWh per day for 5th year: 1000x360x10 = 36,00,000/-
- Total Revenue for 5 years: Rs. 1,80,00,000 /-
Types of EV Charging Stations:
Before discussing the cost of setting up an EV charging station, let’s first understand the types of charging stations available in India. There are three types of EV charging stations:
- AC Charging Station: These charging stations use an Alternating Current (AC) to charge EVs. They are relatively cheaper than DC charging stations.
- DC Charging Station: These charging stations use Direct Current (DC) to charge EVs. They are faster than AC charging stations but are more expensive.
- Battery Swapping Stations: These stations allow drivers to exchange their depleted EV batteries for fully charged ones. They are the most expensive type of charging station.
Cost of Setting up an EV Charging Station in India:
The cost of setting up an EV charging station in India varies depending on the type of charging station, its capacity, and location. According to the guidelines issued by the Ministry of Power, a public charging station with a single connector of 15 kW capacity would cost around Rs. 3.5 lakh to Rs. 4 lakh (approximately $4,700 to $5,400 USD) to set up. However, the cost may vary depending on the type of charging equipment and other infrastructure requirements such as land, electricity connection, and civil works.
Factors Affecting the Cost of Setting up an EV Charging Station:
Several factors can affect the cost of setting up an EV charging station in India. Some of these factors are:
- Type of Charging Station: As discussed earlier, the cost of setting up a DC charging station is higher than an AC charging station.
- Capacity of the Charging Station: The higher the capacity of the charging station, the higher the cost of setting it up.
- Location: The cost of setting up a charging station in a metro city would be higher than in a rural area.
- Infrastructure Requirements: The cost of land, electricity connection, and civil works can vary depending on the location and other factors.
Government Incentives for Setting up EV Charging Stations in India:
To promote the adoption of EVs and the establishment of charging infrastructure, the Indian government has launched several schemes and incentives. The Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) scheme provide financial incentives for the establishment of charging stations in India. Additionally, state governments may also provide subsidies and other incentives to promote the adoption of electric vehicles and the establishment of charging infrastructure.
Benefits of Investing in EV Charging Stations:
Investing in EV charging stations can have several benefits, both for individuals and businesses. Some of the benefits of investing in EV charging stations include:
- Revenue Generation: EV charging stations can generate revenue for businesses. As more and more people switch to EVs, the demand for EV charging stations will increase, resulting in a potential source of revenue for businesses.
- Promoting Sustainable Transportation: EV charging stations promote sustainable transportation practices, which can help reduce carbon emissions and air pollution.
- Supporting the Growth of the EV Industry: Investing in EV charging stations can support the growth of the EV industry and help India achieve its goal of becoming a global leader in the EV industry.
Setting up an EV charging station is an excellent business opportunity in India. The cost of setting up a charging station may vary depending on several factors, such as the type of charging station, capacity, location, and infrastructure requirements. However, with the support of government schemes and incentives, entrepreneurs can set up charging stations at a lower cost. As India moves towards electric mobility, the demand for charging infrastructure will only increase, making it a lucrative business opportunity for the future.
What is the average cost of setting up an EV charging station in India?
The average cost of setting up an EV charging station in India can range from Rs. 1 lakh to Rs. 5 lakh for a basic charging station, while a fast-charging station can cost upwards of Rs. 20 lakh.
What factors influence the cost of setting up an EV charging station in India?
The cost of setting up an EV charging station in India is influenced by several factors, including location, type of charging station, and equipment and infrastructure.
Can individuals set up EV charging stations in India?
Yes, individuals can set up EV charging stations in India. However, they need to obtain the necessary approvals from the concerned authorities and follow the guidelines issued by the government.
What are the benefits of investing in EV charging stations in India?
Investing in EV charging stations in India can have several benefits, including revenue generation, promoting sustainable transportation practices, and supporting the growth of the EV industry.
Do all EV charging stations offer fast-charging facilities?
No, not all EV charging stations offer fast-charging facilities. Fast-charging stations require high-powered equipment and infrastructure, which are more expensive than regular charging stations.
What is the difference between a basic charging station and a fast-charging station?
A basic charging station can take several hours to charge an EV fully, while a fast-charging station can charge an EV in a matter of minutes.
How can businesses benefit from setting up EV charging stations in India?
Businesses can benefit from setting up EV charging stations in India by generating revenue and supporting sustainable transportation practices.
What are the guidelines for setting up EV charging stations in India?
The guidelines for setting up EV charging stations in India are issued by the Ministry of Power, and they cover aspects such as the location of the charging station, equipment specifications, and safety measures.
Are there any subsidies available for setting up EV charging stations in India?
Yes, the government of India offers subsidies for setting up EV charging stations in India under the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME India) scheme.
Can EV charging stations be set up in residential areas in India?
Yes, EV charging stations can be set up in residential areas in India, subject to the necessary approvals and compliance with the guidelines issued by the government.