What is the expense of setting up an electric vehicle station
The electric vehicle charging industry has been buzzing with new advancement, innovation and trend and is now slowly catching the attention of the population.
What is even more interesting is that the mindset of the Indian population is also slowly evolving, with many now willing to make a switch to EVs soon. A recent study has highlighted that by 2022, most consumers in India would consider buying an electric vehicle. This in itself is a key trend which is likely to trigger the growth of the EV segment in the country.
Types of electric vehicle charging stations and chargers.
One needs to plug into a charger connected to the electric vehicle supply equipment (EVSE). There are three major types of EV chargers.
Level 1
- Level 1 charger cable comes with your car, uses a 120V standard household circuit.
- No additional cost of installation required, mostly used in homes.
- A full charge of an electric car takes overnight.
Level 2
- For both commercial (204 AC Plug) & residential (208 AC Plug) use.
- Requires additional charging equipment installation & higher cost.
- Faster charging with level 2 charge, found normally in parking lots.
Level 3 DC fast charging
- High installation cost of charging stations, high-powered equipment, and chargers through a 480V
- Fastest charging, 80% in 20 minutes of charge.
- Mostly commercial use.
Cost of Operating
The cost of opening an electric vehicle charging station is around 1lakhs to 25 lakhs including the charging stations equipment and charging station hardware. The cost of setting up an electric vehicle charging station depends on the type of charger used and the amenities we tend to provide.
However, there are set guidelines and minimum requirements and installation of Public charging stations which are to be kept in mind, These guidelines and requirements greatly affect the electric car charging station’s cost for the installation of a public charging station. The total approximate cost for setting up an electric car charging station comes around 1-30 lakhs depending on the services planned to provide. Also, the government is bringing up many schemes and policies for reducing EV charging infrastructure costs and subsidies in electric car charging station installation costs. However, the electric car charging station installation cost mentioned above can be significantly reduced if one plans to do so. The cost range available on the internet is just approximation and in real life, it depends on the outsourcing of products.
Revenue and earnings from a public charging station
Revenue and earnings from electric car charging station from public chargers are based on some assumptions made are-
- Power output CUF per day i.e., gradual increase with the passage of year 15% for 1st year, 25% for 2nd year, 40% for 3rd year.
- The electricity tariff margin is considered to be Rs. 2.5 for now. Electricity rates may increase in the future for EVs
- For 350 days( counting the closure and maintenance).
Earning approximation from an EV charging station for 3 years:
- Year 1
500 kWh/day 500X350X2.5 = 437,500
- Year 2
1300 kWh/day 1300X350X2.5 = 1,137,500
- Year 3
1600 kWh/day 1600X350X2.5 = 1,400,000
The Total revenue for 3 years from an EV charging station would be approximately Rs 35,00,000. Considering the ongoing rise in the electric vehicle ecosystem in India, there will be a huge demand for public charging stations in India. Even if the installation cost is high, the revenue out of it will boom in some years. So it is wise to invest in EV charging stations.
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