Total Cost of Setting up an Electric Car Charging Station in India – The Indian government has been pretty aggressive with promoting ev car or electric vehicles in order to push for a faster adoption of EVs. However, the biggest challenge that EV-manufacturers face with attracting buyers is the lack of adequate infrastructure. In fact, in its current state, the EV charging infrastructure in the country is so limited that there would be a havoc in case the number of electric vehicles rises exponentially. However, this also presents a good business opportunity. One can simply launch an EV charging station and benefit from high returns as electric vehicles become increasingly mainstream. However, one thing many people wonder is the cost of EV charging station setup. Let’s discuss the same in our post here.
How to Setup EV Charging Station in India
It’s fairly easy to setup EV charging station in India. As per the government, anyone can establish an electric vehicle charging station provided he adheres to the guidelines issued by the Ministry of Power. So, in case you want to install a charging station, all you will need is to meet the government requirements other than, of course, pay the electric charging station cost.
There are multiple electric car chargers, with the most basic ones being what’s called Level 1 charger. These are affordable but charge the battery packs slowly. Level 3 chargers are the ones that are the most popular. They are expensive but can charge very quickly through DC power. The lower turnaround time might actually help one recover the higher investment cost.
Why is there a Sudden Need for EV Charging Stations in India?
As mentioned, there has been a huge push by the government for the faster adoption of EVs. However, the limited EV charging stations in the country have stopped many from taking the plunge into the world of electric vehicles. Hence, there has been even a roadmap by the Government for quick development of a robust charging grid. As per its scheme, every 100 kilometre of highway would have a charging station on both sides. Additionally, an electric highway that would connect Delhi to Mumbai is also being built.
At the moment, we are nowhere near meeting the requirement for EV charging stations in India. With the growing popularity of electric vehicles, there’s surely a sudden need for EV charging stations. Mostly, there’s a huge demand in major Indian cities like that of Mumbai, Delhi, Chennai, Bangalore and Hyderabad.
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
Government Initiatives
In order to help make EVs popular, the Government of India has even taken steps to bring down the cost of EV charging station setup. This has been done by removing the need of having a licence to build EV charging infrastructure. Furthermore, one can choose any charger type and make an investment as per his convenience. The government has even made it compulsory for electricity boards to provide new EV charging stations with the a connection “within 7 days in metro cities, 15 days in other municipal areas and 30 days in rural areas.”
This is not all as the Government also gives owners of EV charging stations to source power from any authorised service provider. They’re also free to use any technology as long as it meets the official safety standards. However, the Government has mandated electric vehicle charging stations to tie up with at least one Network Service Provider for online booking of charging slots.
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 /-
Conclusion
Sales of electric vehicles has been on a rise for a while now. With an increasing number of new EVs hitting the road. it’s only obvious we would require a robust electric vehicle charging station. However, the high cost of EV charging station setup and basic lack of information has stopped many from entering this business. However, as seen above, establishing an electric vehicle charging station can turn out to be a lucrative business in case if you are willing to make the high initial investment.
FAQs
Q: Is EV charging station business profitable?
A: As EVs are fast becoming popular and there’s an increased demand for a robust electric vehicle charging infrastructure, EV charging station business seems to be a pretty profitable proposition.
Q: Are EV charging stations a good investment?
A: Provided you are willing to make a high initial investment, EV charging stations can be a good investment as the need for charging stations has been on a rise with the increasing popularity of electric vehicles.