EV charging business: How to start an EV charging business, and what things to look for
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The advent of charging stations is quickly becoming a game-changer in the Indian business world. It’s going to be similar to opening a petrol pump that has limitless and everlasting business potential in India. Charging stations are on their way to expanding and grabbing the global market in the coming years.
Need for a charging station
Businesses are increasingly going digital to break the cycle of escalating pollution and limit the usage of natural resources, which raises CO2 emissions in our environment. Currently, our country is riding the EV wave. According to data from the Union Ministry of Road Transport and Highways, total registered EV volumes across all segments combined reached 3.13 lakh units in 2021. It goes on to say that registered EV sales will surpass one lakh in just two months in 2022. According to the NITI Aayog report, the country is aiming for a 30% market share in the EV industry by 2030. All of these figures show that India is steadily moving toward an EV revolution.
To begin, let us define the services supplied by a charging station. Motorcycles, scooters, and other electric vehicles on city streets. Prior, electric vehicles were charged at home. However, not all locations offer a dedicated charging station. However, as technology advances, firms are now establishing charging stations in parking lots or on the road to facilitate charging services.
Cost of setting up a charging station
There are two components of expenditure which decide the financial viability of any business, namely -the capital and operational expenditure. The operational expenses of running any business are also very critical for its sustenance. In case of charging stations there are practically no fixed operational expenses.
The expenditure of establishing a charging station in comparison to other sorts of businesses, the cost of setting up a charging station is fairly low.
The Indian government has concluded that no license is required to build charging infrastructure as long as it meets the ‘Ministry of Power’ standards. As a result, there is no need for a special permission to transmit, distribute, or exchange power for the purpose of charging electric car batteries. As a result, the expense of constructing EV charging stations is limited to chargers, electricity, software, infrastructure, advertising, employees, and maintenance.
According to experts, the typical cost of installing an EV charging point ranges between Rs 1 lakh to Rs 50 lakh, depending on the type of chargers installed. Standard expenses include the cost of a new electrical connection, civil work, technicians and workers, maintenance, advertising, marketing, EVSE management software and integration, and site contract.
Types of EV chargers
There are two types of EV chargers based on type of current. The AC charges are comparatively slow chargers and DC has a range of fast charging capabilities. Further these chargers are categorized by the protocol they use like the CCS, CHAdeMO, GB /T. Where CCS comes from the European background, the CHAdeMO comes from Japan while GB/T is a Chinese protocol. Use of any of this technology in the charging system depends upon the market demand. In India, mostly EVs are on the CCS protocol.
Fast Chargers
These are fast chargers for any EV and are usually positioned along major roads throughout the country. The devices deliver high-power direct current (DC) to quickly recharge an EV. Fast chargers can be used with vehicles that have high battery capacity that are capable of rapid charging. Hence two and three vehicles do not have the provision of fast charging. This machine capacity generally ranges from 15 kw to 150 kW. However, the fast charging also depends upon the capacity of the EV to take charge in a specified time. These can be installed at places where there can be a provision of high-power availability.
Slow Chargers
The AC chargers provide slow charging for the EVs. These slow chargers require less power and hence can be installed at any domestic complexes easily. However, they require an average time of 6-14 hours. They are cheaper and easy to handle. Mostly two and three-wheeler EVs use these type of chargers
Requirements for Setting up a Charging Station
The EV charging business is gaining traction because of the low capital and operational cost of the charging stations. They require less manpower and can be easily managed without much intervention.
The shift to EV is evident and is a matter of time. Hence one can expect good returns with the first mover advantage.
The good part is the volume of the business which has the scope to accommodate a good number of players who have long term objectives. The operations of the charging station come with transparency and free of geographic limitations due to its online monitoring and control.
State governments have even announced the mandatory installation of charging stations in commercial and residential complexes, as well as a particular percentage reserved for electric vehicles in such complexes,to pave the way for adoption of the EV eco system. Here’s everything you need to know before launching an EV charging station in your town.
Area:
The location of a charging business is critical. Area requirement depends upon the feasibility of the site , the number of charging piles, type of EVs to be charged , other activities at site. The charging equipment as such doesn’t require more than 10 sqft of space however more importantly it’s the space for vehicle’s parking and circulation. The minimum area would be as low as 100 sq ft.
Manpower: Most of the good charging infra-OEMs provide a complete solution (equipment + software + mobile app) hence a good setup of the charging stations is unmanned. From the payment collection to bill generation everything is done online. Hence except for the physical security of the machine no manpower is required at site.
Marketing: Online marketing is the finest approach to getting your name out there when you’re just starting. However, employing YouTube, Facebook, LinkedIn, advertising, and blogs are the most effective ways to help your business expand.
Licence: This business has a significant advantage in terms of licensing. There is no requirement for a license. According to the Ministry of Power, no license is necessary for the establishment of charging stations in India.
Minimum Requirements
Setting up a business necessitates selection of a good EV charging OEM who can provide a quality solution which can be easily handled. An electrical setup of desired load according to the capacity of the chargers and selection of the right place to install the charging station is what it takes to start the business. A good technology provider of the charging infra will help to evaluate the business prospects of the startups.
Setting up a charging business can be one of the most promising businesses in current times which has minimum requirement in terms of business experience, capital, time and has quick return on the investment. one of the best prospects in India for the future. The charging station has the ability to help the environment by reducing pollution and fuel use. As a result, establishing charging firms benefits both the economy and the sustainability of future trends.
(The author is Director – EV Cosmos)
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