The Indian government has announced that anyone can put up an electric vehicle charging station anywhere in the country as long as it complies with the power ministry’s requirements. In this article, we will explore the cost of setting up an EV Charging Station in India.
So, if you want to build an electric vehicle charging station, all you have to do is meet the government of India’s basic infrastructure requirements and choose the right charging solution supplier and location.
There are numerous sorts of electric car chargers; the most basic is the Level 1 charger, which charges at a sluggish rate. The most prevalent type of charger is the Level 3 charger, which uses DC power and charges quickly.
Why there is a sudden need of EV Charging Stations in India?
An EV charging station must be placed every 3 kilometres in cities and every 25 kilometres on both sides of roads, according to the government’s infrastructure regulations. Every 100 kilometres on both sides of the highway, a charging station for long-range and heavy-duty vehicles should be located (mostly Highways). In addition, to boost industrial transportation, India is building an electric highway connecting Delhi and Mumbai.
We are now nowhere near meeting the requirement (because to the scarcity of EV charging stations in India), and we can see that charging stations are desperately needed.
The demand in major cities such as Bangalore, Delhi, Chennai, Hyderabad, Mumbai, and Pune is immense.
The government of India plans to add over 1000+ electric vehicle charging stations before 2023 as part of Phase 2 of the FAME scheme and has already requested proposals from companies.
EV Charging Stations are being subsidized by several state governments.
Cost of Setting Electric Charging Station in India
Depending on the type of chargers utilised and the amount of money involved, the cost of setting up an EV charging station in India ranges from Rs. 1 lakh to Rs. 40 lakhs. The following is a tentative estimate based on a more generic scenario and a supply of 250KVA EV Stations.
||CCS – 60kW
||CHAdeMO – 60kW
||Type 2 AC – 7/22kW
||Bharat DC-001 – GB/T
|Approximate Cost (in INR)
- 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)
Infrastructure Requirements for EV Charging Stations
- A transformer and subsequent substation, as well as safety measures, must be installed.
- For metering/termination, a 33/11KV cable and supporting equipment should be supplied.
- Adequate civil works should be in place.
- There should be enough room for electric vehicles entry and egress as well as charging.
- Any local certifications that may be required. (This varies by state.)
Understanding the Revenue Model
To understand the revenue model, lets do some calculations for the next 5 years.
Note: This is just an example, the revenue/profit depends on daily use of the charging station and various other factors including if you own the charging station installation place or not.
If we assume the upfront investment of Rs. 40 lakhs, we can expect to consume 500-1000 kWh of EV electricity every day. Lets just say the daily consumption is 1000kWh.
When it comes to the use of electricity (for 360 days and a fixed margin of Rs. 10 per consumption).
- 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 /-
EV sales are increasing, and the need for charging stations is increasing daily, even though there are just 1% of EVs in India compared to regular automobiles.
The answer is YES if you have the financial means and are willing to take on a larger role as an entrepreneur. Now is the moment to invest in the future, specifically in electric vehicle charging stations.
If you are looking to venture into the EV industry, then you should check out our publication: EV Infrastructure for Dummies.
It has everything which one needs to know about EV infrastructure.
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