What is required for an EV charging station?

The Indian government is promoting electric vehicles for a faster adoption of EVs. EV-manufacturers are facing challenges due to lack of adequate charging station infrastructure.However, this also presents a good business opportunity.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.One can benefit from high returns as electric vehicles become increasingly mainstream.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.

The most important question that comes to mind is the cost of EV charging station setup.Let’s discuss in this article.

What is reason behind sudden need of charging stations in India

The Government of India is working hard for EV adoption but limited EV charging stations in the country are stopping many people from starting their EV journey.

 The Government is planning a roadmap for quick development of a robust charging grid. As per its scheme, every 100 kilometre of highway would have a charging station on both sides. Additionally, an electric highway that would connect Delhi to Mumbai is also being built.

An EV charging station must be placed every 3 kilometres in cities and every 25 kilometres on both sides of roads, a charging station for long-range and heavy-duty vehicles should be located (mostly Highways). There's a huge demand in tier-1 Indian cities like that of Mumbai, Delhi, Chennai, Bangalore and Hyderabad.

Government Initiatives

To bring down overall cost for ev charging stations government has taken significant steps

Removing the need of having a licence to build EV charging infrastructure.

The government has even made it compulsory for electricity boards to provide new EV charging stations with a connection “within 7 days in metro cities, 15 days in other municipal areas and 30 days in rural areas.”

One can choose any charger type and make an investment as per his convenience.

Owners of EV charging stations can source power from any authorised service provider.

Government has mandated electric vehicle charging stations to tie up with at least one Network Service Provider for online booking of charging slots.

Owners of EV charging stations can use any technology free as long as it meets the official safety standards.

Cost of EV charging station setup in India

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The cost of setting up an EV charging station in India ranges from Rs. 1 lakh to Rs. 40 lakhs. The investment might vary based on the type of chargers installed. Below, we have a rough estimate of the cost of EV charging station setup in India based on a generic scenario and a supply of 250KVA EV Stations.

CCS – 60kW = 12,50,000

CHAdeMO – 60kW = 12,50,000

Type 2 AC – 7/22kW =1,00,000

Bharat DC-001 – GB/T = 2,40,000

Bharat AC-001 =60,000

EVSE Management Software + Integration: 40,000 /-

Technicians, Manpower, Maintenance, etc: 3,50,000 /- yearly

New Electricity Connection (250 KVA): 7,50,000 /-

Civil Works: 2,50,000 /-

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)

Operational cost: Software maintenance, Technical maintenance, Manpower.

 

Infrastructure requirements for EV charging station

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.)

 

Revenue model

Before making an investment, it’s important to understand the revenue model. We have assumed an initial investment of Rs 40 lakh and daily consumption of up to 1000 kWh units of electricity,electricity at 10 Rs per unit. We made rough calculations for 5 years.

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 /-

 

Summing UP

Basic lack of information has stopped many from entering this business. As seen above, establishing an electric vehicle charging station can turn out to be a lucrative business if you are willing to make the high initial investment.Now is the time to invest in the future.