How to Setup an EV Charging Station in India?

The market for electric vehicle charging stations is estimated to cross $4 billion globally. India is one of the emerging markets. Where there are local and international players in the region. It presents India to grow into a market with huge potential for growth.

Also, the best part is that an EV charging station can be set up in India. Provided the station fulfills the technical standards prescribed by the Government. Inadequate charging facilities have always been the most frustrating factor behind automobile company's reluctance towards electric cars. 

Keeping in mind the overall scenario of India, the Government of India took an ambitious leap to increase the number of charging stations to one station every three kilometers in cities across India. This includes setting up of charging stations every 25 km on both sides of the highway. 

It is highly anticipated that the charging stations market will cross ₹4 billion worldwide in the coming years. Automotive giants like Mahindra, Tata Motors etc. and cab service providers like Ola and Uber are some of the domestic brands that are keen to set up electric vehicle charging stations in India. 

The list includes some serious international brands like Alfa, Delta, Fortum and some Dutch firms etc. Which indicates India as one of the emerging markets in the region.

This presents India with a huge potential to grow in this market. To ease the installation process, the Government of India has de-licensed public charging stations for electric vehicles, allowing interested persons to extend such facilities, but at a regulated tariff. What this means is that it means that any person can set up a charging station in India. Provided the station fulfills the technical standards prescribed by the Government.

Setup an EV Charging Station in India:

To set up an EV charging station, the following points may need to be taken care of to set up a station with a suitable facility. 

1. Target Segment: 

The charging requirements for electric 2 and 3 wheelers are different to those for electric cars. Electric cars can also be charged with a gun. Two and three wheelers have to be charged by removing the battery. So decide what type of vehicles you want to target. The number of 2 and 3 wheelers is more than 10 but the time taken to charge them once will also be more. 

2. Charging Speed: 

Once you know the target segment, decide what type of charging unit you need, for example AC and DC. An AC slow charger is sufficient for electric 2 and 3 wheelers. While both options (AC and DC) can be used for electric cars, however an electric car user will always opt for a DC fast charger. 

Anyone available in the market can go with the franchise module of companies like Fleely where one can park their vehicle to charge and eat some snacks, relax in the garden, take a nap in sleeping pods etc. 

3. Location:

This is the most important and decisive location factor. An inner city road consists of two wheelers and four wheelers. Where the number of two wheelers can be 5 times more than the number of four wheelers. In case of highways also AC and DC chargers are a good solution for DC fast chargers on international roads and highways. 

4. Investment: 

The second factor that usually affects the decision is the initial investment (CAPEX) that you are going to invest in the project. Any person minimum Rs. EV Charging Station business can be started with an investment of Rs. 15,000 to 40 lakhs depending on the type of charger and services they are going to offer. If the investment is in the range of up to Rs. 5 lac, then choose 4 AC charger and 1 DC charger.

5. Demand:

Calculate the demand that will generate space in the coming 10 years. Because once the number of electric vehicles is going to increase, enough power supply will also be needed to provide electricity to the charging station. So, calculate the amount of energy you will need, according to future demand. and make provision for the same in terms of consumption of capital or electricity. 

6. Operational Cost:

The maintenance of an EV charging station depends on the type and setup of the charger. Maintaining a high capacity charging station and providing add-on services (laundry, restaurant etc.) is similar to maintaining a petrol pump.

Capex is something we consider before starting our project. But the biggest problem arises when the operating cost is not recovered from the ongoing business. Hence the maintenance/operational cost is calculated from the charging station. 

7. Government Regulations: 

You should understand the government regulations of your particular area. Consult or check state and central government websites about the latest rules and regulations or subsidies available in the EV sector. 

Although the cost of setting up a charging station and petrol pump in India is almost the same, if you are still confused between the two, it is always better to proceed with the major factor related to the charging station, which is the location charging station. .

In my opinion, if your location is on National Highway or near any urban area, and you are planning to start the project in next 2-3 months, then going for EV Charging Station would be the most suitable option.