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How are 'free' EV charging stations paid for? Cost Estimates and Revenue Model for a Public Charging Station
Simran Kaur
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Published on 19th Dec 21

How are 'free' EV charging stations paid for? Cost Estimates and Revenue Model for a Public Charging Station (PCS)

India is expanding its public charging infrastructure in an effort to accelerate its transition to carbon neutrality.

With the gauntlet thrown down to the general public, the field is open for private players to step up and lead the major urban transformation required to accelerate the adoption of electric vehicles.

Taking the initiative, the central government has already lifted barriers for entrepreneurs looking to establish charging stations, thereby creating jobs and bridging infrastructure gaps.

Consequently, the Ministry of Power press released special guidelines which mention, "the establishment of Public Charging Stations in India should be a de-licensed activity."

Any individual or company is free to establish public charging stations, provided that such stations adhere to the technical and performance standards and protocols laid down by the Ministry of Power and Central Electricity Authority.

This brings light to the requirements! So how does one go about establishing a Public Charging Station (PCS)?

The Requirements:


Which charger should be used?

1. Chargers are classified into three broad categories. Type 1 and Type 2 both operate on alternating current or A/C power, and as such are suitable for slow or moderate charging of electric cars, two-wheelers, and three-wheelers.

2. A Type 2 charger is compatible with both alternating current and direct current charging systems, as well as CCS connections. A Type 2 A/C and D/C charger is the most economically viable solution for those wishing to develop a public charging environment due to its wide range of uses and low cost.

3. The third type, a direct current charger, is the most expensive but is more suitable for highways due to its higher turnover rate, i.e. it charges cars faster and so accommodates a greater number of cars per day.

The Cost of Installing EV Charging Stations


Revenue Projections


NPV and IRR of non-subsidized PCS vs. fully subsidised charging costs:


Is the investment worthwhile?

A variety of business models and billing methods (slow, quick) must be planned in accordance with the target clients or users, their demands, their locations, and available resources.

While the collaboration between local governments and electric utilities is appropriate for the initial stages of introducing charging stations in a city, at a later stage, other models such as the electric utility-PT-IPT or PPP model, or the commercial establishment-electric utility model, may be more appropriate.

Each has its own set of pros and disadvantages. Utilizing existing public parking lots, on the other hand, might save on land expenses, and phased implementation could minimise upfront expenditures.

While EVs are unquestionably the way of the future, and their use will surely increase, it will take time for your ROI to turn your ledgers green. Offer advertising space, refreshments, and so on, and you're sure to generate revenue far more quickly.

The operating costs, which include paying salaries on time and maintaining equipment, may appear intimidating at first, but a long term vision combined with the ability to invest should keep you afloat until the enterprise becomes unquestionably successful.

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