How to start an EV charging station business in India

Willing to open an electric car or electric scooter charging station in India? Looking for complete information on electric vehicle charging infrastructure? Here's a detailed article to answer all your questions.

If you are looking for the best new business opportunities in India, then setting up an EV charging station, repair workshop and home charging station set up is undoubtedly a great proposal. Electric vehicle (EV) charging companies are mushrooming ceaselessly. With the increased awareness about the environment and the introduction of electric vehicles (including e-cars and e-scooters), electric vehicle charging stations are on the list of top business opportunities in India for the decade. Likewise opening a petrol pump or starting a biofuel station has an endless and everlasting business scope in India as well as across the globe, EV charge stations are on their trail of capturing the global market in the upcoming years.

What does an EV charging station do?

First of all, let's clarify the services provided by an EV charge station. You might have seen electric two-wheelers, cars, and e-rickshaws running on the city roads. But from where these vehicles get themselves charged? Some people charge their e- vehicles at home. Like in the case of Tata Nexon EV, the company itself installs the charging set-up at home without charging any additional fees. But all establishments don't have a dedicated charging point at the parking lot with required essential security features. A number of charging stations are required to provide on-road charging services.

Cost of setting up an EV charge station

The cost of starting an EV charging station is very low as compared to other business set-ups. The government of India has declared that no license is required for setting EV charging infrastructure, provided that it complies with the standards as laid down by the 'Ministry of Power'. Thus, no separate license is required for transmitting, distributing, or trading electricity for the purpose of charging batteries of electric vehicles.

Thus, the cost of starting EV charge stations includes only set up cost which consists of the cost of chargers, electricity, software, infrastructure, advertisement, manpower, and maintenance. On average, the cost of setting an EV charging point is between Rs. 1,00,000 and Rs. 45,00,000 depending upon the types of chargers you are going to install. Basic cost charges included are the cost of new electricity connection, civil work, technicians and staff, maintenance, advertisement, promotions, EVSE management software & integration, and land lease (if any).

How to start an EV charging station business in India?

Types of EV chargers

There are three types of EV chargers:
  • Type 1- It is a single-phase plug which can charge power level of up to 3 kw. It slowly charges the vehicle from a home charging point converting AC power to DC.
  • Type 2- It is a three-phase plug with the capacity to handle power level between 7.4 kw and 43 kw with a 400 volt AC power supply. This type of charger is compatible with both AC and DC charging systems as well as with vehicles with CCS plugs.
  • Combined Charging System (CCS)- As the name suggests, these charges have the capability to handle Type 1 AC charging as well as Type 2 DC fast charging. Combo charges can handle power input of up to 350 kw.
  • CHAdeMo charger- It is a rapid charger with power input of up to 400 kw by 1000 V, 400 A direct current. CHAdeMo is an abbreviation of 'CHArge de MOve' and is widely accepted by over 70 countries across the sphere.
  • GB/T charger- This type of charger is recommended by government of India. Bharat DC 001 standard provides power output of 15 kw/ 72-200 V while Bharat AC 001 provides output of 10 kw/ 230 V.

Step- by-step guide to start EV charging business

Electric car charging station business opportunity is amongst the top business models in India. The number of electric vehicles running on the roads is significantly more than the number of EV charge stations on the roads. Some state governments have even declared to compulsory install charging stations in commercial and residential complexes, and to reserve a specific percentage for electric vehicles in such complexes. Here's all you need to know before starting an EV charging station in your city.

As already mentioned, you do not need any license from the government to start this venture. But we suggest you to check if your state government demands any local certifications. All you have to look for is the minimum infrastructure required for setting EV Public Charging Station (PSA).

Equipments required

  • A transformer with subsequent substation.
  • Civil works as required.
  • Sufficient parking space.
  • Minimum five ISO- certified charger types/ machines.
  • Minimum required safety equipments.
  • A 33/11 KV cable with required equipment for metering and/ or termination.

Other basic requirements:
  • Sufficient manpower, including technicians.
  • Drinking water.
  • Washrooms
  • Snacks counter (optional)

Is it profitable to start an EV charging business?

EV home charging and public charging setup business are one of the best business opportunities in India. Though the customer category still relies and depends upon the traditional auto industry, EV automobile industry is the next generation preference. The government has also taken various initiatives to promote the sale of such vehicles. GST on electric vehicles and their batteries has been reduced to 5%. Income tax benefits are provided up to Rs. 1,50,000 on the interest rate paid on their loans. Other than this, state governments provide additional benefits, like exemption on road tax, registration fees, stamp duty, electricity tax etc. It is unquestionably understandable that increased sales of such vehicles will demand more number of charging points.

Secondly, the government has issued infrastructure guidelines making it compulsory to set an EV charging station at a distance of every 3 km in cities and 25 km on national highways on both sides. It has also been made clear that there should be such stations for long-range and heavy-duty vehicles at every 100 km on both sides of highway roads. But practically, our infrastructure doesn't have even 1% of the stations required. Also, the government of India has invited bids from companies as it is planning to install over 1000 EV charging stations by the year 2023. So, if you are a prudent far-sighted entrepreneur with enough investment and patience, then EV charging stations are a good setup to invest in.

EV charging station franchisee in India

You can also get dealership and join hands with a reliable partner for this infrastructure. Some of the big EV charging stations franchisee opportunity providers are:
  • Tata Power
  • Panasonic
  • Charge + Zone
  • NDPI Electric India Pvt. Ltd
  • EV Plug India

Disclaimer- Information provided above is precise to the best of our knowledge. Readers are advised to use their own judgment before taking any decision.

Article by Nidhi
Nidhi is a freelance content writer with 10+ years of experience. She has a great passion to write on valuable topics so as to provide precise information to her readers.

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Author: Umesh18 Apr 2021 Member Level: Diamond   Points : 4

As the fossil fuel resources of the world are dwindling gradually and also seeing the environmental concerns there is a big need for the switch over from diesel/petrol to electric power-driven vehicles. This has become a thrust area for the technology to manufacture efficient electric vehicles and once they start plying on the roads the biggest requirement will be the battery charging stations. This is an emerging business area and has a very good scope for the young people who want to start their own business. Practically what will be done is that the discharged battery will be given at the station for charging and a charged battery is to be taken and fitted in the vehicle after paying some amount for the charging service. So, every station is supposed to have a very good inventory of the charged batteries and that is where the good margin in this business appears to be available.

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