Are you planning to set up an EV charging station business in India? Then I must congratulate you for taking the first step to prove yourself a socially responsible entrepreneur! And not to forget the fact that setting up an EV charging station is an extremely rewarding business opportunity as green mobility initiatives are supported worldwide.
The Indian government has come forward to actively promote green mobility. The initiative is definitely going to impact the automobile space in coming years. In fact, experts feel that going forward, there’s huge opportunity in the two and three wheeler space.
By 2030, the usage in the EV two and three-wheeler space is expected to go up by 70-80%.
As several EV policies got announced last year by the State and Central Government (link at the end), an aspiring entrepreneur can definitely explore the opportunity to set up an EV charging station business in India, provided he/she meets certain criteria.
But before taking the plunge, perhaps you would like to draw inspiration from some of these interesting statistics.
Interesting Facts That Support Your Decision to Set Up An EV Charging Station Business In India
The Government of India has this ambitious plan to complete the conversion to electric vehicles by 2030. All the leading manufacturers like Hyundai, Tata, and Mahindra have come up with their versions of electric vehicles. Electric bikes, scooters and buses are already launched by reputable brands like Ashok Leyland, Hero, Revolt, TATA Motors and others.
And of course not to forget, Electric pick up trucks. They are in the pipeline too! All these indicate one thing, i.e. there will be huge demand for public charging infrastructure.
The Government supports the entrepreneurial initiative to set up an EV charging station in India. It states that individuals or business entities can set up a charging station for electric vehicles as long as they meet certain technical specifications.
According to a senior Government official, “Setting up public charging stations shall be de-licensed and any individual is free (to set them up) provided the stations meet standards of the power ministry. The person should apply for connectivity and the distribution company is bound to provide connectivity. Obtaining electricity from open access is also permissible.”
So, yes, you are you the right person to set up an EV charging station business in India, provided:-
You aim to change the environment for better living
It’s better if you have an electrical engineering background
And you are passionate about sustainability.
Now, let’s take a look at the 7 necessary steps to set up an EV charging station business in India.
Do Thorough Research of The Market You Plan to Target- The Key Step to Set Up An EV Charging Station In India
In case you don’t know, chargers are typically classified into various levels. The Level 1 charger being the basic one, comes with very slow charging speed. It is the level 3 charger, popularly known as DC charger which is most popular. This category of charger is widely used due to its rapid charging ability.
So the very first thing you need to decide to set up an EV charging station in India is the range/kind of electric vehicles you plan to charge through your charging station.
Here are few segments you can target:-
You can plan to cater to charging requirements of E-Buses or E-Cars. Else you may aim to cover heavier vehicles like E-Trucks?
You may plan to keep it simple in the beginning by setting up a charging station for E-Rickshaw.
Also a good idea is to consider the three-wheeler segment only. You can offer charging services to retrofit Electric motors on the traditional Bajaj 3 Wheelers. Else your charging station can cater to simple electric scooters too.
At the same time, you need to decide what rapid charging protocol you wish to follow.
So, before you take the first step to set up a charging station for electric vehicles, try to assimilate as much knowledge as possible about EVs and rapid charging protocols. It helps if you can educate yourself about the Japanese and European technology options of EV charging.
Find the Appropriate Location to Set Up The Charging Station
Needless to say you should find a suitable location where maximum usage of electric vehicles is happening currently. Ideally speaking, you can set up a charging station at residential building premises, community centers, business centers. You can consider other public or private areas of any category.
The location will be considered as a Public Charging Station as long as it follows the commercial mode of charging of EVs. The place should also have proper entry and exit facilities.
The Government of India has proposed setting up of normal EV charging stations at convenient locations.
The distance to be maintained between two EV charging stations is a maximum of 25km (highways) and 3km (inside the city). For long range & heavy-duty electric vehicles, the stations should be set up on either side of main roads and highways at a distance of 100km.
Start Connecting With the Right Manufacturers of EV Chargers
Since a lot depends on the type of charger you install, this step is an important one. You should do own research to connect with the trusted companies who manufacture electric vehicle chargers, related to the categories you plan to serve.
Few established companies that manufacture Charger or Electric Vehicle Supply Equipment are ABB India, Delta Electronics, Mass-Tech, etc.
Then there are companies like TATA Power, Magenta Power and EESL who help set up charging stations and suitable networks. Check the complete list here.
You Need to Acquire The Necessary Local Certifications to Set Up An EV Charging Station In India
In general, you don’t need a license to set up an EV charging business in India. However, every State has set up its own set of power compliances and you are expected to follow these strictly.
Here’s a quick look at the Electric Vehicle Charging infrastructure :–
1. There should be an exclusive transformer installed with necessary sub-station equipment, as well as safety appliance.
2. For the purpose of metering or line termination, there needs to be 33/l l KV cables with related equipment.
3. The civil work should be adequate and appropriate.
4. There needs to be adequate space for charging as well as entry and exit of vehicles without obstruction.
5. The Public Charging Station or PCS should have one or more electric kiosk or boards with installation facility of charger models as follows:
|Charger Type||Charger Connector|
|FAST||CCS (min 50 kW)|
CHadeMO (min 50kW)
Type-2 AC (min 22 kW)
|SLOW to Moderate||Bharat DC-001 (min 15 kW)|
Bharat AC-001 (min 10 kW)
For the Fast charger type, a minimum of 1/1 number of charging point/charging gun is to be maintained. For the slow/moderate category, the requirement is a minimum of 3/3 numbers of charging points/charging guns.
Additional Infrastructure Criteria
If you are planning to start an EV charging station business in India, then a partnership with at least one Network Service Providers (NSPs) is mandatory. This helps EV owners quickly do the online booking of charging slots from a remote location.
Whatever data you have collected as the EV owner needs to be shared with the Distribution Company and also the Central Electric Authority.
Your EV charging station can start offering services only after the inspection is completed by qualified electric personnel appointed by the Distribution Company. They provide a clearance certifying that your station is ready to start servicing electric vehicles.
Know the Investment to Set Up A Public EV Charging Station in India
If you are looking for low-cost business ideas, then EV charging business is not for you! Because the minimum investment to set up an EV charging station business in India is anything around 30-40 Lakhs.
How do you break up the costs of setting up a public EV charging station?
|Charger Type||CCS||CHAdeMO||Type2 AC||Bharat DC-001||Bharat AC-001|
|Approx. Purchase Price||15L||15L||1.25L||2.4L||70,000|
|New electricity Connection (250KVA)+related accessories||7.5L|
|EVSE Management Software + Integration expenses||40,000|
|Manpower(Technician, site maintenance, etc)||3.5L yrly|
|Advertising and promotion||1.0L yrly|
(The estimate is provided for 240V EV charging station).
Also you need to consider expenses related to leasing/renting a property to set up your charging station.
The above projections provide an overall picture of the one-time and recurring expenses related to starting and running an EV charging station in India. However you should do own research and market survey to get a clearer picture of the situation.
How Much You Can Earn From Your EV Charging Business in India?
You have to agree that the electric vehicle segment is still at its nascent stage in India. So as an early entrant you can definitely reap early rewards. But at the same time, you need to be really patient till electric vehicles overpower the conventional modes of transport in India.
Still, experts provide a rough revenue projection of around 15-20L in the initial years. Not to overlook the fact that electrical tariffs and Government subsidies are likely to vary region-wise. And this is going to impact your earning too.
It looks quite a lucrative opportunity to set up an EV charging station business in India, as the Government recently approves setting up of 2,600 electric vehicle charging stations in 62 cities under the FAME II scheme.
If you are the energy entrepreneur looking to start own venture in the sustainable energy space, then an EV charging station business is just the perfect opportunity for you. Go for it and make the world a better living place!
Ref. links: Government policies about setting up EV station