EV charging station an attractive option for business in IndiaJune 30, 2022 2022-06-30 9:36
EV charging station an attractive option for business in India
The rise in the sale of EVs in the country has opened a huge business opportunity in setting up charging stations. It is the best time to invest in this business, more so because the charging infrastructure in the country is still in an infancy stage. Depending on the type of chargers to be installed at the station, one can make investment plans. The profit for the charge point operator is assured, like for the fuel station owners.
An EV charging station can cost anywhere between Rs 1 lakh and Rs 40 lakh, depending on the type of chargers. AC slow chargers are less expensive whereas DC fast chargers are very expensive
The EV charger providers earn money from two sources: the hardware cost of the charger and the software cost. The CPO (Charge Point Operator) can, however, earn money from a variety of sources
Electric vehicle sales in the country are on the increase. With the introduction of many EVs priced under Rs 20 lakh, consumers are choosing this greener option over the traditional ICE (Internal Combustion Engine)-based vehicle. EVs, they understand, are better for the environment because they emit no pollution unlike the ICE vehicles, which emit a large amount of greenhouse gas and pollute the environment.
With the rise in EV sales, setting up of an EV charging station has become a profitable venture. EV stations, like gas stations, can be a good and consistent source of income. Since the country’s charging infrastructure is still in the development stage, now is the best time to invest in EV charging stations.
An EV charging station can cost anywhere between Rs 1 lakh and Rs 40 lakh, depending on the type of chargers installed. AC slow chargers are less expensive whereas DC fast chargers are very expensive, again depending on their capacity. An AC charger comes in the price range of Rs 20,000 to Rs 70,000, whereas a DC charger can cost between Rs 1 lakh and Rs 15 lakh.
The EV charger providers earn money from two sources: the hardware cost of the charger and the software cost, which is charged on a subscription basis. The CPO (Charge Point Operator) can, however, earn money from a variety of sources. The first is the premium per unit charge for electricity provided. For example, if a CPO purchases electricity from the Electricity Department for Rs 7, it can charge Rs 15 to 20 per unit provided by the consumer. Secondly, a CPO can open a convenience store alongside the charging station where customers can relax and do some purchases while their vehicles get charged.
Many Government policies, like the FAME-II (Faster adoption and manufacturing of hybrid and electric vehicles), have helped to increase EV sales by 150 per cent in 2022. To meet the EV charging needs of all the EVs sold in the country, it would require approximately 30,000 EV charging stations. For all Indian entrepreneurs interested in getting into the EV charging station business, this is an opportunity worth more than Rs 20,000 crore.
Many OEMs (Original Equipment Manufacturers) such as Tata, Exicom, Statiq, Delta, Ola Electric, and Evergreen are providing attractive packages for the installation of EV charging stations. Tesla currently has the most EV charging stations in the world, with over 25,000 superchargers spread across the globe.