How to Set Up EV Charging Stations in India

  • Author :
  • TATA AIG Team
  • Published on :
  • 30/10/2023

The craze for electric vehicles on Indian roads is growing day by day. Electric vehicles are low-cost alternatives to diesel and petrol vehicles and are also cleaner and quieter. These vehicles don't require fuel consumption; they have electric batteries.

So, to run efficiently, these batteries need to be charged occasionally. There are electric vehicle charging stations like fuel pumps in India. However, the government of India is focusing on creating more electric vehicle charging stations.

To empower electrical vehicle use, the government of India has announced that anybody in India can set up EV charging stations as long as they comply with the primary standard. There is no need for a particular licence to set up EV charging stations.

Read this blog to learn more about how to open an electric car charging station in India.

Need for Setting Up EV Charging Station in India

As the demand for electric vehicles rises, there should be enough EV charging stations to fulfil the charging requirements.

As per the infrastructure regulation released by the government of India, there should be EV charging stations every 3 Km in cities and every 25 km on both sides of the road. Further, there should be EV charging stations every 100 kilometres on highways.

Currently, we are not even close to the requirement; that's why the government is pushing individuals and entities to invest in EV charge point installers.

How Does an EV Charger Work?

Electric vehicles need electricity to recharge. An equipment is inserted into an electric vehicle to charge it, known as an electric charger. It is also known as electric vehicle supply equipment(EVSE). Generally, the purpose of a charging station is to be equipped with sufficient electric charge points and an electric source or grid to charge the electric vehicle.

Based on usage and working, the electric vehicle charger is classified into two types: AC charger and DC charger. Usually, the AC charger provides a limited energy source to electric vehicles, so they are slow in charging. Such electric vehicle charging set-up can be built at home, offices, etc.

On the other hand, DC chargers, due to their higher energy transfer, are quick in charging. However, to charge electric vehicles at a fast rate, these charging stations require more power, requiring a dedicated or separate electric connection.

How to Open an Electric Car Charging Station in India

Before doing an electric charging station installation, you must have many things in check. Starting an EV charging station is a complex process; a proper procedure needs to be followed to make it a successful business. Here are **Step-by-**Step guides on how to open an electric car charging station in India.

Step 1: Do Market research Step The first electric vehicle charging station requirement is conducting thorough market research. Opening an electric vehicle station without knowing your target consumer base and usage wastes money and time. Market research lets you understand what kind of electric vehicle charging stations you need and where to open them.

Step 2: Select Location Step Once the market research is done, the second **Step is to select the location. It is important to choose the right location since the charging station's success and failure will depend on it. If you have an EV charging station in a remote or less-traffic area, it will be less successful. Go with a location close to the highway or readily accessible to consumers.

Step 3: Inform Local DISCOM Authorities Step Once your location is final, reaching out to the local DISCOM in your area is essential. These local authorities provide permits to install distribution systems to get an electricity connection for your charging station. However, there is no particular licence to start electric vehicle stations, but charging station owners need EV-specific electricity connections. For that, they need to have proper documentation and licence.

Step 4: Electric Vehicle Equipment Step After obtaining the licence from local authorities, the next **Step is to purchase the electric vehicle charging station equipment. Various companies offer electric vehicle charging equipment like software, hardware and more. While buying the charging station equipment, it is best to cross-check the warranty, cost, safety standards, customer support and more.

Step 5: Installation and Testing Step Once the equipment is purchased, it is time to install and test it. The charging point operator from the company will visit the location and carry out the installation process. Once the installation is complete, the operator will also do the on-site testing to check if the equipment works properly. It's essential to ensure the charging station is compatible with all kinds of EVs, its speed and more in the testing phase.

Step 6: Set Electric Vehicle Charging Fees Step Once the charging station is up and all set to run, the owner will decide the charging fees for the vehicle. It should not be decided hastily. The charging station owner must include the operating cost, other expenses, and profit in the charging fees.

Step 7: Market the Charging Station Step After setting up the charging fees, now is the time to market the charging station. Advertisements and promotions are essential to make your electric vehicle charging station noticed by your target market. Invest in digital marketing strategies to get your EV charging station under the “electric vehicle station near me” SERP results on the search engine.

Step 8: Regular Maintenance Step Lastly, to ensure the proper functioning of electric vehicle charging stations, it is essential to do regular maintenance. Carry out regular maintenance to check if all the equipment is working correctly. If they are not, then reach out to the charging point operator to get it fixed.

EV Charging Stations Cost in India

Now, coming to EV charging stations cost, so if you want to set up a public charging station in India, it can cost between ₹1 lakh to ₹50 lakh based on the type of charger and infrastructure. Infrastructure costs include land leases, electrical connections, transformers, energy metres, and more. Let's understand the breakdown of infrastructure charges in tabular format. The cost listed below can differ slightly based on the marketing requirement.

Requirement Cost
Land Lease At 50, 000 per month ₹6,00,000
Electrical Equipment (Transformers, Energy Metres and more) ₹7,50,000
EVSE Software Integration ₹40000- ₹50000
Civil Works ₹250000 - ₹300000
Marketing ₹50000
Technical Team for Maintenance  ₹300000

Another thing is charger cost; as per the government regulation, a public charging station needs 3 fast chargers and 2 slow chargers. The cost of these chargers is listed below:

Types of Charger Cost
Bharat AC - 001 ₹65,000
Type 2 AC ₹1,20,000
CCS ₹14,00,000
Bharat DC - 001 ₹2,47,000
CHAdeMO ₹13,50,000

However, please note that the price of chargers listed above may vary from supplier to supplier. Individuals and entities can also take EV charging station franchises from reputable market players such as Exicom Power System, Tata Power and more by investing ₹1 to ₹10 lakh.

Types of EV Charging Stations

There are three types of charging stations based on the types of chargers. Below, we have listed them.

Level 1 or Slow Charging Station- This is the most basic electric vehicle charging station with a slow charging speed. This charger uses 120V from the AC power source; it can be utilised in homes and offices. Creating a charging station at home using this charger is effortless as it does not require any dedicated power source. It usually takes 8 to 12 hours for an EV to charge using this charging station.

Level 2 or Standard Charging Station- Another type of EV charging station is Level 2 or standard charging station, which requires 240V from an AC power source. It generally requires 4 to 6 hours for an electric vehicle to charge. Not just this, this kind of charging station is compatible with all kinds of EVs. Due to the moderate time required to charge a vehicle, it is employed in parking spaces of residential or commercial buildings.

Level 3 or Rapid Charging Station- Lastly, we have level 3 or rapid charging stations that charge electric vehicles 80% using 480 V from a DC power source in just 20 to 30 minutes. These electric charging stations can only be installed in public places like petrol and diesel pumps. However, it is not compatible with all kinds of electric vehicles.

Do Electric Vehicles Also Require a Car Insurance Policy?

Having third-party insurance for four-wheelers is a requirement before getting behind the wheel on Indian roads, irrespective of vehicle type. But you can receive enhanced coverage by buying a comprehensive car insurance policy catered to your electrical vehicle type.

EVs have specialised requirements such as type of battery, equipment, etc. With a comprehensive car insurance policy offered by Tata AIG, you can get enhanced protection against various man-made and natural risks.

Further, before buying a four-wheeler insurance policy, you can easily compare the coverage and premium using a car insurance calculator.

Conclusion

Setting up an EV charging station is profitable in India since the demand for EV vehicles is growing. Currently, there are only a limited number of charging stations in India. With more and more EV charging stations available to consumers, the demand for EV vehicles will also increase.

FAQS

Can I charge the EV at home?

With level 1 charging or a Type 1 AC charger, EVs can be charged at home easily. However, the speed of charging would be slow.

Is EV charging free in India?

If you charge EVs at home, then it will add to your electricity bill. Further, if you charge EVs at a public charging station, you must pay the decided cost set by the owner.

Is setting up EV charging stations profitable in India?

Setting up EV charging stations in India is a profitable business that requires investment of ₹10-₹30 lakh and can earn revenue of ₹4- ₹5 lakh per month based on your services.

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