How to Open an Electric Car Charging Station in India

The EV market in India is flourishing, and with it increases the demand for EV charging stations. However, setting up an EV charging station is a costly endeavour. The cost of permits, installation, and equipment may add up quickly. 

In this guide, we will explore the EV charging stations cost and discuss how to open an electric car charging station in India. You will also learn how a Business Loan can help you expand your EV charging station business in India.

Things to Consider Before Setting up an EV Charging Station

Before setting up an electric car charging station, here are a few key considerations to take into account:

• Location: The location of an EV charging station is crucial. It should be convenient and easily accessible for EV owners. Ideal locations for a charging station include highways, residential areas, commercial complexes, etc.
• Power Supply: The power supply is crucial in determining the type of station you may consider installing. Ideally, it should have a reliable power supply, and the capacity should be enough to support the charger's power requirements.
• Charging Speed: Different electric vehicles have varying charging requirements. Therefore, ensuring the charging station caters to different types of EVs is essential. Slower charging stations are suitable for commercial and residential areas, while highways and long-distance charging locations require fast EV chargers.
• Charging Standards: CCS, CHAdeMO, etc., are some types of EV charging standards. While setting up a charging station, you must select a standard compatible with different electric vehicles and their requirements.
• Business Model: You may choose different business models to set up an EV charging station, including subscription-based, pay-per-use, etc. Choose a sustainable and financially viable business model according to your business nature.

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Types of EV Charging Stations in India

An electric charging station franchise can be of three types: Level 1, 2 and 3. The cost of installing each type varies. Here is a table where you will find detailed information about the different types of charging stations:

Charger Type	Voltage	Power	Charging Time
Level 1	240 V (AC) >=48 V (DC)	<=3.5 kW <=15 kW	12 Hours
Level 2	380 to 400 V (AC)	<=22 kW	4-6 Hours
Level 3	200 to 1,000 V  (AC & DC)	Up to 400 kW	80% in under one hour

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How to Set Up EV Charging Stations in India?

If you want to know how to set up an EV charging station in India, here we have explained the complete procedure in steps:

• Research: Before setting up an electric charging station franchise, conduct research to determine the project’s viability. Consider various factors to make an informed decision, such as charging standards, business model, power supply, location, etc. 
• Obtain the Necessary Permits: You must obtain the necessary permits from relevant authorities, including the Ministry of Power, local Municipal Corporation, and state electricity board. Ensure obtaining all the required licenses and permits before setting up the business.
• Choose a Suitable Location: After obtaining the necessary approvals, identify a suitable location to set up a charging station. Ensure the location you choose is convenient and easily accessible for EV users.
• Install and Test the Station: Once you choose an appropriate location, install the charging equipment and test its performance to ensure proper working. The test involves checking the charging speed, power supply, and compatibility with various types of electric vehicles.
• Invest in Promotion: Once your charging station becomes operational, invest some time and money into its promotion to attract EV owners. Use multiple marketing channels to promote the business, such as social media, offline advertising, mass media, etc.
• Monitor and Maintain: Finally, monitoring and maintaining the charging station is essential to ensure efficient working. It includes regular upgrades and maintenance to stay up-to-date with the latest charging standards and technologies.

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Infrastructural Requirements for setting up EV charging station

Fulfil these infrastructural requirements for setting up EV charging stations in India:

• Installing transformer, substation equipment, and safety equipment 
• 33/11 KV cables for lines and meters
• A safe parking place where customers can park their cars when charging them
• All types of chargers approved by local and international standards
• Installing chargers with varying charging abilities, including rapid, fast and slow chargers
• Adequate security measures while charging the vehicles

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Government Guidelines for Setting EV Charging Stations

The Central Government has issued the following guidelines for setting EV charging stations: 

• According to the Indian government guidelines, it is compulsory to set up an EV charging station at a distance of every 3 km in cities, 25 km on highways, and 100 km for heavy-duty vehicles. 
• Any individual can set up an EV charging station without a license, provided they fulfil the Power Ministry of India guidelines. 

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Cost of Setting Up EV Charging Stations

The average EV charging station cost varies from Rs 1 Lakh to 50 Lakh, based on the following expenses involved: 

1. Infrastructural Costs for Setting Up EV Charging Stations

The infrastructural costs for setting up an EV charging station include land and equipment-related expenses. Here is an estimated cost break-up:

Essential Prerequisite	Estimate Costing*
Land lease @ Rs 50,000 per month	Rs 6 Lakh
Civil Works	Rs 2.5 Lakh
Electricity transformers, connections and energy meters	Rs 7.5 Lakh
Technical team	Rs 3 Lakh
Marketing	Rs 50,000
EVSE management software and integration	Rs 40,000

 
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2. Charger Costs

According to government guidelines, a public EV charging station dealership must have at least three fast and two slow chargers for charging vehicles. The costs of various chargers are as follows:

Types of Charger	Estimate Costing*
Bharat AC - 001	Rs 65,000
Bharat DC - 001	Rs 2,47,000
Type 2 AC	Rs 1,20,000
CHAdeMO	Rs 13,50,000
CCS	Rs 14,00,000

 
Note: * stand for estimate costing, it can be vary as per the market demands

Benefits of Setting up EV Charging Stations

Setting up an EV charging station offers several benefits. Here are some of them:

• Since India is fast-moving towards transformation to electric vehicles, EVs will soon replace internal combustion engine (ICE) vehicles. Therefore, the demand for EV charging stations will only rise in the coming years.
• The Indian government provides several subsidies and schemes to set up EV charging stations.
• You can cover the cost of upgrading or expanding EV charging stations with a Business Loan from Hero FinCorp and increase the revenue over time.
• Making EV chargers easily accessible will ease the transformation to eco-friendly vehicles.

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How Business Loans Can Help You Expand an EV Charging Station?

Now that you know how to open an electric car charging station in India, let’s see how a Business Loan from Hero FinCorp can help expand the business:

• Ample loan amount of up to Rs 40 Lakh to cover the EV charging station cost
• Easy eligibility and minimal documentation requirements make Business Loans easily accessible
• Flexible repayment terms of up to 60 months that keep EMIs easily affordable
• Reasonable Business Loan interest rate, starting at 14%, to control the loan cost 

How to Apply for a Business Loan to Expand the EV Charging Station?

Want to know how to expand an EV charging station in India with a Business Loan? Here is how to apply for a Business Loan through Hero FinCorp:

• Visit the Hero FinCorp website.
• Go to the Business Loan page and click Apply Now.
• Fill out an online application form.
• Upload soft copies of the required documents.
• Enter your loan amount and repayment tenure.
• A representative may contact you for more information if needed.
• Review and accept the loan offer to get disbursal directly into your bank account.

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Conclusion

Setting up an electric charging station franchise in India involves several equipment, permits, installation, and maintenance needs. However, the future of this business idea is promising, thanks to the growing demand for EVs and supporting government initiatives. If you need a Business Loan to cover the expansion cost of EV charging stations, apply for one with Hero FinCorp at a low Business Loan interest rate and flexible repayment terms.

Frequently Asked Questions

1. What is an EV Charging Station?

An EV charging station is a facility where electric vehicle owners can charge their vehicles.

2. How many EV Charging Station Franchises are in India? 

There are several EV charging station franchises in India, varying based on their charger types, business models, charging speeds, etc.

3. Where is the largest EV Charging Station in India?

The largest EV charging station in India is at the Delhi-Jaipur National Highway, Gurugram, with a capacity to charge 100 four-wheelers at a time.

4. Why do I need a Business Loan for an EV charging station?

The EV charging station expansion cost is higher, as it includes several of the latest equipment, installation, and maintenance-related expenses. That is why you may need a Business Loan to expand an EV charging station.

5. Can I use the loan to upgrade or expand an existing EV charging station?

A Business Loan has no end-use restrictions. So, you can use the funds to upgrade or expand your existing EV charging station.

Disclaimer- The content provided in this document is for informational purposes only. It offers insights into the process of starting an EV charging station, potential benefits, and various aspects related to this field. The information is based on general knowledge and industry research. The costs provided are only an approximation, and the actual expenses may vary depending on the scale of your business.