Tamil Nadu Government is actively promoting the electric vehicle sector in the state, evidenced by the rise in the number of EV sales and the introduction of a second EV policy on February 2023. The new Tamil Nadu Electric Vehicles policy focuses on growing the number of EV Charging Stations in Tamil Nadu by offering capital subsidies for setting up public and private charging stations.
According to the Vahaan Dashboard, there are a total of 52,566 electric vehicles in Tamil Nadu, as of July 2023 which includes electric cars, electric scooters, busses, and e-rickshaws. There are 241 EV charging stations in Tamil Nadu, which is clearly not enough to support the growing electric vehicle sector. It presents an excellent business opportunity to invest in right now.
In this article, we cover the detailed guide to setting up EV charging stations in Tamil Nadu along with the EV Charging policy highlights, minimum requirements, set-up cost, and revenue model.
Policy for EV Charging Stations in Tamil Nadu:
Under the newly updated Tamil Nadu EV policy, the government aims to develop the EV charging infrastructure in the state by providing support and incentives. Here’s a list of key highlights of the Tamil Nadu EV Charging policy:
- Identify sites for EV charging stations in Government offices and along the highways at an interval of 25 km.
- Reduction in demand charges by 75% for the first two years, followed by 50% for the subsequent two years.
- Reduction of energy charges by 50% during non-peak hours between 8 AM to 4 PM.
- 25% subsidy up to Rs. 10 lakh of the cost involved in the purchase of equipment & machinery for EV charging station set up.
Download: TAMIL NADU EV POLICY
Charger Map: Locate 310 EV Charging stations in Tamil Nadu
Types of EV Charging Stations
Approved and commonly installed EV Charging stations in Tamil Nadu are of three types: Level 1, Level 2, and Level 3. Level 1 and Level 2 are slow and moderate AC EV charger types, while Level 3 chargers are ultra-fast DC Chargers that take around 45 minutes to fully charge a 30kW EV battery.
While the Indian government has introduced two Indian EV charging standards (Bharat AC-001, Bharat DC-001) and two international charging standards: CHAdeMO, and CCS.
Here’s a table of the different types of EV charging stations promoted and subsidized by the Tamil Nadu state government:
Also Read: Different Types of EV Chargers
How to Set Up EV Charging Station in Tamil Nadu
The steps to set up an EV charging station in Tamil Nadu are almost similar to the rest of the country. However, differences arise in the per kW charging rates and standards set by the Tamil Nadu state government. Here’s a step-by-step guide for the setup process:
Knowing the target market
Doing market research to understand the EV traffic-dense regions is a must before setting up an EV charging station in Tamil Nadu. Cities like Coimbatore, Chennai, and Madhurai have been identified as EV hotspots so far from our EV database.
Identify a Location
Location plays a key role in the success of an EV charging station business. Identify and select a location that is easily accessible with adequate parking space and it is on or nearby highways.
Check with local DISCOM
Once the location is identified, visit the local electricity provider’s office for getting the new EV-specific electricity connection and qualifying for the EV tariff set by the Tamil Nadu government.
Select a Chare Point operator
Charge Point Operators (CPOs) are companies that provide complete EV charging solutions such as hardware, software, maintenance, and management. Consider set up cost, customer support, and revenue sharing model while choosing a CPO.
Once the CPOs complete the location visit prepare the location for installation either by leveling the land or providing proper electrical connections. Once that is done, the EV charger will be installed in 7-8 days.
Set Charging Fees
Determine the charging fee to collect from EV owners for topping up their vehicles. One needs to consider factors like operating costs, profit margin, and competitive pricing while determining the charging fee. In Tamil Nadu, most CPOs charge Rs 17/kW for DC fast charging.
Monitor and Manage
One needs to check for any damage or malfunction of EV chargers to ensure smooth operation of the EV charging station and longevity. EV charging stations can be remotely managed via EV charging station management software offered by the CPOs.
Cost to Set up EV Charging Station in Tamil Nadu
Setting up an EV charging station in Tamil Nadu costs between Rs. 1 lakh to 17 lakh, based on the type of EV charger, added infrastructure, or availability of transformers.
The total cost to set up an EV Charging station in Tamil Nadu comprises of:
- Cost the Charger
- Additional costs for infrastructure, management, and Electrification
Cost of EV Chargers
The cost of EV chargers in Tamil Nadu depends on the subsidy provided by the state government on the charger, power ratings, warranty options, and safety features.
Here’s a list of prices of different EV chargers in Tamil Nadu:
|Type of EV charger
|Cost (in INR)
|Type 2 AC
NOTE: Above mentioned prices of EV chargers are calculated after deducting the incentives offered by the Tamil Nadu Government.
Additional Cost to set up EV charging stations in Tamil Nadu depends on the availability of land, topography, and yearly maintenance. Here is a list of the additional cost to set up an EV charging station:
NOTE: Additional costs for starting an EV charging station business in Tamil Nadu depend on the charger type, business model, and required infrastructure.
Revenue Model of EV Charing Station Business in Tamil Nadu
The revenue model for EV charging stations is similar for all Indian states. However, the Return on Investment (ROI) and break-even point differ from state to state according to the DISCOM charges, and EV tariffs provided by the state government.
We have assumed the charging costs to be Rs 17 per kW in Tamil Nadu and the DISCOM EV tariff of Rs 6 per unit including taxes. The average electric car’s battery capacity is 30kW and 10 cars visit the station daily.
Here is a table explaining the Revenue Model of an EV charging station in Tamil Nadu:
|Average Units consumed per day
|Units consumed in a month
|Revenue per month from one EV Charger ( Rs 15/kW)
|Per kW DISCOM charges including tax
|Total DISCOM charges per month
- The average yearly profit from an EV charging station depends on the DISCOM tariff and the EV charging cost set by the station owner.
- The number of cars visiting the station increases every year, while the operating expenses decreased from the next year onwards.
Minimum Requirements to Set up EV Charger in Tamil Nadu
Here is a list of minimum requirements to set up an EV charging station in Tamil Nadu:
- Transformer with substation appliances (If Applicable).
- 33/11 KV cables for meters and termination.
- Appropriate civil works with adequate parking space.
- Tie up with at least one Network Service Provider (NSP).
- Liquid-cooled cables and climate control equipment for fast charging stations.
Electric Vehicle Charging Station Providers in Tamil Nadu
Several electronic equipment companies and EV Startups in Tamil Nadu have started manufacturing EV chargers in cities like Chennai, and Coimbatore. Here is a list of all the EV charging station providers in Tamil Nadu:
|EV Charger, Installation
|EV Chargers, Installation, Charging software, and management
|EV Chargers, Installation, Charging software, and management
As of July 2023, the EV Charging station business is delicensed in India, so any individual can set up a charging station hassle-free. We believe that it is high time to get into the EV charging business considering the need for charging stations to support the growing electric vehicle ecosystem in Tamil Nadu. We will assist you in every way possible to set up an EV charging station in Tamil Nadu. If you have any queries regarding the business setup, kindly let us know in the comment section. We are happy to help!
FAQ on EV charging station business in Tamil Nadu
According to the CEEW, there are 281 EV charging stations in Tamil Nadu. This includes both slow and fast AC/DC charging stations throughout the state.
The cost to charge electric vehicles in Tamil Nadu is Rs 15 per kW at public DC fast charging stations. However, during non-peak hours the charging rate per kW is Rs 10 for fast charging.
EV charging tariff in Chennai is Rs 15 per kW at DC fast charging stations. It costs around Rs 350 – Rs 400 to fully charge a 30kW electric car in Chennai.
According to the Tamil Nadu EV charging policy, the state government has reduced the demand charges by 75% for the first two years, followed by 50% for the subsequent two years. Allowance of 25% subsidy up to Rs. 10 lakh of the cost involved in the purchase of equipment & machinery for EV charging station set up.
EV charging station providers in Tamil Nadu are Tata Power, Ecocharger, E4EV, and Goec.
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