The cost to set up an EV charging station in India is Rs. 1.5 lakh – Rs. 20 lakh including the EV charger equipment, management software, and medium infrastructure. The cost of installation depends on the type of charger, infrastructural requirements, and station location.
The cost to set up an EV charging station at home is comparatively lower than a public charging station because of the difference in output power from the chargers.
In this article, we will help you understand the costs involved in setting up EV charging stations in public spaces and homes.
Firstly let us jump in to understand the cost of setting up public and home EV charging stations:
EV Charging Station Set Up Cost
The cost of setting up an EV charging station in India is Rs. 1.5 lakh – Rs. 20 lakh. The setup cost is different for Public EV Charging Stations and Home EV Charging Stations.
There are three types of EV chargers: Level 1, Level 2, and Level 3.
READ MORE: EV Charger Types and Connector Types
Let’s have a look at the costs involved in setting up Charging Stations in different locations:
Cost To Set Up Public EV Charging Stations
The cost of opening a public EV charging station is Rs 10 lakh – Rs 20 lakh including a 30/60kW DC fast charger, software, and light infrastructure. The cost of setting up an electric vehicle charging station depends on the power output power of the EV charger and the amenities.
Public EV Charging stations mostly consist of Level 2, and Level 3 EV chargers. Here’s a list of the price of standard public EV chargers for India:
|Charger type||Output power||Cost of charger|
|Type 2 AC||22kW||Rs. 1,25,000|
Cost of Setting Up EV Charging Station at Home:
Level 1 AC chargers with an output power between 3.3kW to 7.4kW are the most popular EV Chargers for homes. The cost to install an electric vehicle charging station at home is between Rs. 13,000 – Rs 75,000 including installation and software.
For charging the electric car at home, it is recommended by the government to use the IEC 60309 Industrial connector.
Here’s a price list of the EV chargers for home:
|Charger Type||Power Output||Price|
|Level 1 AC||3.3kW||Rs 7,000|
|Level 2 AC||7.4kW||Rs. 55,000|
Apart from the cost of the charger there are several other additional costs involved in setting up EV charging station, let us understand them as well.
Other infrastructure costs of an EV charging station
On top of the EV charger cost, EV charging stations have several additional infrastructural costs. Here’s a list of additional costs to set up an EV Charging station in India:
|Additional Requirements||Cost (in INR)|
|Transformer and cables||Rs. 5,00,000|
|Land Lease @Rs 15,000/month||Rs. 15,000|
|Civil Works||Rs. 1,00,000|
|EV Charging Station Software||Rs. 60,000|
|Total Additional Cost (Approx)||Rs. 70,000|
|Total Additonal Cost (Approx)||Rs. 7,85,000|
- Additional costs differ according to the station design and charger level.
- Installation of Level 1 and Level 2 EV charging stations at home has very minimal additional costs.
READ MORE: Read in detail about the setup process, revenue model, Government subsidies and incentives related to EV charging stations in the main article.
With the rising demand in the charging stations network, startups and investors have a great opportunity to rise in this sector. Let’s understand the business opportunities in the EV charging sector.
Electric Vehicle Charging Station Business Opportunities:
With a vision to become a carbon-neutral nation by 2030, the Government of India has introduced several policies like FAME II and Production Linked Incentive (PLI) to promote the sale of EVs and the development of EV charging infrastructure.
The government of India offers a subsidy of Rs 5,000 for setting up slow EV Charging Stations and Rs 10,000 for DC Fast EV charging Stations. It presents an excellent business opportunity to invest in the EV charging sector of India.
Here’s a list of business opportunities in the Electric Vehicle Charging Sector:
- EV Charger Manufacturer: Manufacturing of reliable AC and DC EV chargers for home as well as public spaces.
- Charging Station Operator: Managing EV charging station network under various business and revenue-sharing models with the investors.
- Home EV Charger Installer: Installing AC EV chargers for homes using 120-240 Volt home power outlets.
- EV Charging Software Provider: Offering EV Charging station management software to CPOs and charger manufacturers for payment, remote management, and monitoring.
- Installers and Maintenance: Dedicated team with expertise in EV charger installation and maintenance offering services to CPOs.
Since you are now aware of the business opportunities in the EV Charging sector, let us understand why it is the right time to start an EV charging station business and whether Is India ready for EVs.
Is India Ready For Electric Vehicles in 2023?
Electric vehicles have started to gain popularity among customers in India because of the reduced cost and launch of new electric vehicles offering higher ranges. Indian EV sector witnessed a growth of 173% in 2023 with 1,181,600 million units in overall EV sales.
Apart from the environmental benefits – People are switching to EVs because of their superb efficiency, cheaper energy costs, less maintenance, and better performance.
Here’s a graph of the growth of EV sales in India from 2018-2019:
The continued growth in the number of electric vehicles has created a very high demand for EV charging stations in India. India has 6786 DC fast charging stations as of July 2023, which is clearly not enough to support the EV ecosystem.
Also, the EV Charging Station business is de-licensed by the government of India as an initiative to promote the development of EV charging infrastructure. So, it is quite easy for an individual to open an electric car charging station business in 2023.
MYTH: People Charge EVs at their homes, how will the EV charging business work?
With the rise in the number of EVs, the transformers and electric grids around residential areas won’t be able to manage the power demand. Eventually, people will opt for public charging stations, since they charge EVs faster and at significantly lower prices.
EV charging technology is developing rapidly in India and the set up costs are decreasing with every new Government policy update. ROI from an EV charging station is proven to break even the investment made for the project in a few years. Considering all these scenarios, it is high time to get into the business and explore the endless financial and environmental benefits of the EV charging domain.
FAQ cost of setting up EV charging Stations:
EV Charging stations charge a calculated amount per unit for charging your electric vehicle. Rates for charging EVs differ according to country and state.
EV charging stations set up costs around Rs 1.5 lakh – Rs 20 lakh in India. The cost depends on the charger type and location for installation.
Electric Vehicle charging stations are recharge points to refill electric vehicle batteries using AC and DC chargers.
Charging an electric car at home costs Rs. 180 – Rs. 240 per full charge. The cost depends on the per unit electricity cost set by the local power distributing company.
Nearby EV charging stations can be found by searching for EV chargers on google maps or any EV charging station aggregator application.
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