The Ultimate Guide to Starting an EV Charging Business
As EVs are increasing on the road in India, many businesses are looking forward to investing or starting an EV charging business. Are you one of them? If yes, this article provides you an ultimate guide to understanding the EV charging business and the step-by-step process to begin one in India.
What is an EV charging business?
EV charging business refers to installing EV infrastructure with the sole purpose of earning or enhancing revenue. For instance, cafes with EV charging stations in their parking lots allow cafe owners to earn additional revenue. For land owners on the highway or in the city building an EV infrastructure can be a lucrative business.
What are the benefits of the EV charging business?
Why would you start any business? Not just for money, of course. Although the primary goal of any business is to earn revenue, there are other added benefits that come along. Let us have a glimpse of the benefits of the EV charging business.
Earning Opportunities
When you build a public or semi-private charging station, you get earning opportunities. You can build a charging station beside your shopping mall, or cafe and earn excess revenue. Additionally, you can install an EV infrastructure only for EV charging to earn exclusively from supplying power.
Enhance Brand Image
Suppose you plan to install a semi-private electric vehicle charging station in your commercial building. Your employees and clients can benefit from the EV infrastructure. You can retain talent with the added benefit of EV charging. In addition, you also enhance your business image by supporting emission free vehicles.
How can you get into the EV charging business?
Here is the step-by-step process to start an EV charging business in India. Let’s dive in.
Choose EV Infrastructure Classification
The first and foremost decision you must make is selecting the EV infrastructure classification – public or semi-private. All your other processes and decisions will depend on the classification. For instance, the number of chargers you require to install.
Set Location
First, you should decide the location for the electric vehicle charging station installation. You may already have land for EV infrastructure. Thus, you can move to the next step. If not, fret not! If you have an existing business in any sector and want to start an EV charging business, you can build a charging station in your parking area. Through which, you can earn excess revenue when customers charge their EVs. Further, you can buy or rent land in the city or highway for your EV charging business. Ultimately, you must know how much space you have to proceed with.
Explore Types of Chargers
You can get all types of EV chargers in India. However, here are the top EV chargers required.
- Bharat AC 001 Charger – This charger is usually used at the home charging station, giving a power output of 3 kW.
- Level 2 AC Charger – This EV charger is utilized at private or semi-public charging stations where EV drivers can charge vehicles for long hours. It has a power output of 7 kW.
- GB / T – It is suitable for electric and hybrid electric vehicles. China developed the GB / T charging standard, which can deliver up to 237.5 kW.
- CCS2 – This type is developed by Europe and gives a power output of 50 kW to 350 kW.
- CHAdeMO – Five Japanese automakers originate this type. They have launched the first connector with 62.5kW – 400kW power output.
Identify the Number of EV Chargers Required
Based on the EV charging station location, you must collect data on sold electric vehicles. Next, you need to analyze and understand how many footfalls you can have. Based on these aspects, you can identify the number of chargers you need for your station. Also, you must check whether there is any other charging station in the nearby areas.
Check Budget
Now that you know the type of EV chargers and the number of chargers required, you need to check your budget. An AC charger requires an approximate budget, from INR 15,000 to INR 1,25,000. And a DC charger demands an estimated budget starting from INR 4 Lakhs to INR 10 – 12 Lakhs. You must be thinking, what all is included in this estimation? Or what excess costs do you need to bear? You can contact the leading electric vehicle charging station manufacturer to resolve these queries.
Explore Power Supply Options
Moving to the next step, you need to estimate the power supply required in kilowatts (kW) for your station. For the estimation, you need a defined number of EV chargers and the number of charging sessions per charger per day. It will help you choose one of these three options for a power supply.
1. Utilize existing power connection
2. Set up a new power connection
3. Utilize solar energy by installing a solar system
Permission from DISCOMs
You require permission from power distribution companies (DISCOMs) only if you need to apply for a new power connection for your EV charging station.
Contact EV Charging Station Manufacturer
As simple as it may sound, the process of setting up an EV charging infrastructure can leave you bemused. Getting an electric vehicle charging station company in India on board can get you the right guidance making the whole process a piece of cake.
Charging Point Operators (CPOs)
Lastly, you need CPOs to manage your huge public or semi-public charging stations. CPOs ensure safe and optimal ongoing EV charging operations. They also manage the backend technologies of the charging network infrastructure.
Wrapping Up
Undoubtedly, anyone who has invested in the EV industry in any possible way will benefit in the long run. When it comes to the EV charging business, this process may seem a bit long. However, once you start the operations, you will see the return on investment coming in.
