What is EV charging station setup cost in India?
Electric vehicle (EV) demand is increasing as India quickly embraces electric transportation. In order to accommodate this demand, the country will need a strong charging infrastructure. Setting up EV charging stations is a lucrative business opportunity for businesses interested in contributing to India's green revolution.
According to government infrastructure requirements, electric vehicle (EV) charging stations must be strategically positioned every 3 km inside metropolitan areas. Furthermore, stations must be created every 25 kilometers on both sides of roads, and charging terminals must be established every 100 kilometers on both sides of highways. These highway charging facilities are critical for long-range and heavy-duty electric cars. Recognizing the rising automobile industry, India is working hard to improve its industrial transportation infrastructure by building an electric highway connecting important cities.
EV Charger Types
EV charging stations in India correspond to international standards such as Japan's CHAdeMO, Europe's CCS, and India's Bharat AC/DC standards. Different charger types cater to different cars and standards, focusing on features like use, compatibility, and safety. Notably, DC fast chargers are regarded as a wise investment.
In India, there are three types of EV charging stations: AC Charging Stations that use Alternating Current, DC Charging Stations that use Direct Current (which is faster but more expensive), and Battery Swapping Stations that allow battery swap.
Cost to setup an EV charging station in India
The establishment cost of an electric charging station in India can range from Rs. 1 lakh to 40 lakhs, depending on usage patterns and investment levels. The following are approximate estimates for a standard setup involving 250KVA EV stations:
- CCS-60kW Charger Type: Approximately Rs. 50,000.
- 2 AC-7/22kW Charger Type: Around Rs. 1,00,000.
Breakdown of the step-by-step costs for an electric charging station:
- New Electricity Connection: Rs. 7,50,000.
- Civil Works: Rs. 2,50,000.
- EVSE Management Software + Integration: Rs. 40,000.
- Technician and Manpower (including maintenance costs): Approximately Rs. 3,50,000 per year.
- Advertising and Promotion: Rs. 50,000.
- Land Lease: Rs. 6,00,000 yearly.’
The total cost for the first year setup, including land lease, sums up to Rs. 40,00,000/-. Subsequently, the annual maintenance from the second year, encompassing the land lease, is estimated to be Rs. 10,00,000/-.
Requirements for Infrastructure
Establishing EV charging stations requires proper infrastructure, which includes grid-sourced energy, regulatory permissions, transformers, substations, cables, and enough space for car entrance and parking.
Understanding the Revenue Model: Regardless of how expensive the initial setup is, understanding the revenue model is critical. A five-year estimate based on a Rs. 40 lakh initial investment and daily consumption of 1000 kWh at Rs. 10 per unit implies a possible income of Rs. 1.8 crores.
Factors Affecting Setup Costs
Several factors influence EV charging station setup costs, including charger type, capacity, location, and infrastructure requirements. DC charging stations are pricier, and costs rise with increased station capacity, urban locations, and infrastructure demands.
Government Incentives
To encourage EV adoption and charging infrastructure development, the Indian government offers incentives like the FAME India scheme, providing financial support for establishing charging stations. State governments may also offer subsidies to promote electric vehicle adoption.
Wrapping Up
Setting up an EV charging station in India is a lucrative economic venture. While installation prices vary, government subsidies can help to alleviate financial concerns. As the country shifts to electric vehicles, the need for charging infrastructure is expected to soar, creating a profitable opportunity for forward-thinking companies.
