Can Electric Vehicle Charging Station Be A Business?
If you are seeking for the best new business possibilities in India, establishing an electric vehicle (EV) charging station, service shop, and home charging station is unquestionably a fantastic idea.
Electric vehicle (EV) charging companies continue to proliferate. With rising environmental awareness and the advent of electric vehicles (including e-cars and e-scooters), electric vehicle charging stations are among the decade's most promising business opportunities in India.
EV charge stations specifically, are on the verge of seizing the worldwide market in the next years, much as constructing a gas station or biofuel station has a limitless and unending business potential in India and all over the world.
What does an electric vehicle charging station do?
On the city's roads, you may have spotted electric two-wheelers, vehicles, and e-rickshaws. How do these vehicles acquire their power? Well, it’s pretty obvious, some individuals charge their electric automobiles at home, while others use charging stations installed in public.
However, not all facilities provide a dedicated charging station with the necessary security features in the parking lot - and in India, charging services on the road still require a sufficient number of charging stations.
Cost of establishing an EV charging station
Compared to other business setups, the cost of launching an EV charging station is extremely inexpensive. The Indian government has ruled that no licence is required for the installation of EV charging infrastructure, so long as it meets the standards established by the "Ministry of Power." Consequently, no additional licence is necessary for transmitting, distributing, or exchanging electricity for the purpose of charging electric car batteries.
Thus, the cost of establishing EV charging stations consists only of setup expenses, which include the cost of chargers, electricity, software, infrastructure, advertising, labour, and maintenance.
Depending on the types of chargers to be installed, the typical cost of installing an EV charging station ranges between Rs 1,000,00 - 4,500,00. Included in the basic cost charges are the cost of a new energy connection, civil work, technicians and employees, maintenance, advertising, marketing, EVSE management software and integration, as well as land lease (if any).
How to start an EV charging station business in India?
First things first, understand the variations of EV chargers. Three types of EV chargers exist:
Type 1 is a single-phase plug that can charge up to 3 kw of power. It gradually charges the vehicle from a residential charging station by converting AC to DC power.
Type 2 is a three-phase plug capable of handling power levels between 7.4 kw and 43 kw with an AC voltage of 400 volts. This style of charger is compatible with AC and DC charging systems, as well as CCS connections.
Combined Charging System (CCS) - As the name implies, these chargers can handle both Type 1 AC charging and Type 2 DC fast charging. Combo charges can accept up to 350 kw of power input. It is a quick charger with a power input of up to 400 kilowatt at 1000 V and 400 A direct current.
GB/T charger - The Indian government recommends this sort of charger. Bharat DC 001 offers 15 kW of electricity at 72-200 V, whereas Bharat AC 001 gives 10 kW of power at 230 V.
A Guide to Starting an EV Charging Business
In India, electric car charging station business opportunities are among the best business concepts. Significantly more electric vehicles than EV charging stations are operating on the highways. While some state governments have even mandated the installation of charging stations in commercial and residential complexes, as well as the reservation of a certain number of parking spaces for electric vehicles.
To start, you only need to search for the bare minimum infrastructure needed to install an EV Public Charging Station.
- A transformer followed by a substation.
- Civil construction as needed.
- Sufficient space for parking.
- Minimum of five ISO-certified charging machine types.
- Minimum necessary safety equipments.
- A 33/11 KV cable with the necessary metering and/or termination equipment.
Other fundamental requirements:
- Enough personnel, including technologists.
- Drinking water.
- Snacks stand (optional)
Is starting an EV charging business profitable?
That’s a no brainer! Electric vehicle (EV) home charging and public charging setup businesses are one of India's top business options. Although the client segment still relies and depends on the traditional auto business, the EV automobile industry is the preference of the next generation.
The government has also made numerous steps to promote the sale of these automobiles. The value-added tax on electric vehicles and their batteries has been decreased to 5%.
The interest rate paid on their loans is eligible for tax deductions of up to Rs. 1,500,000. State governments provide extra incentives, such as exemptions from road tax, registration fees, stamp duty, and power tax, among others. Unquestionably, greater sales of these vehicles will necessitate an expansion in charging stations.
Second, the government has established infrastructure rules mandating the installation of an EV charging station every 3 kilometres in urban areas and every 25 kilometres on both sides of national roads. It has also been specified that such stations for long-distance and heavy-duty trucks shall be located every 100 kilometres on both sides of highways.
In reality, however, our infrastructure lacks even 1% of the necessary stations. In addition, the Indian government has encouraged companies to submit bids for the installation of over one thousand electric vehicle (EV) charging stations by 2023.
Therefore, if you are a smart, long-sighted entrepreneur with sufficient capital and patience, EV charging stations are a worthwhile investment.