Friday, July 02, 2021
By Manoj Kumawat
How Much Money do You Need To Set Up An EV Charging Station?
Despite the huge success enjoyed by some of the electric cars in India, the segment is not enjoying the expected success. The most important reason responsible for the slow progress is the non-availability of the required infrastructure, especially the charging stations. As these vehicles need to be charged daily people are concerned about the discharge of the battery in the middle of their drive.
For encouraging people to use electric vehicles the government of India has announced lots of schemes. One such scheme is setting up an electric vehicle charging station. According to reports the government of India has clearly stated that anyone is free to set up a charging station for electric vehicles in the entire country. For this, he only needs to meet the standard requirements determined by the ministry of power. If you are also planning to set up an electric vehicle charging station then you just need to find a suitable location and comply with the government terms and conditions.
Types of Electric Vehicles Chargers: There are different types of electric vehicle charges. Level 1 type charger is the regular charger with a normal speed of charging. The other one which is more popular is the Level 3 type charger which offers fast charging facility and uses DC.
What is the Cost of Setting up an EV Charging Station? The cost of establishing an EV charging station in the country is between Rs 1 Lakh and Rs 40 Lakhs, depending upon the types of chargers and investment you can make. For setting up a normal station of 240V, the estimated cost is as follows:
New Electricity Connection (250 KVA): 7,50,000 /-
Construction: 2,50,000 /-
EVSE Management Software + Integration: 40,000 /-
Technicians, Manpower, Maintenance etc: 3,50,000 /- annually
Advertising and Promotion: 50,000 /-
Land Lease (if the land is at lease): 6,00,000 /- annually
Total Approximate: Rs. 40,00,000 /- (First year including setup and if the land is at lease). From the second year onwards the investment on the annual maintenance will be Rs 10,00,000 assuming the land is on lease.
How Much Money You Can Earn From the Charging Station? This however depends on the number of vehicles you charge on an everyday basis. Still keeping the existing conditions in mind we can assume the normal income from the charging station during the next five years.
Assuming the investment of Rs 40 lakh, we receive about 500-800kWh daily for the consumption of EV power. Speculating the electric utilization at a fixed margin of Rs 10 per consumption for 365 days during years. Your income during the next five years will be as follows.
200 kWh per day for 1st year: 200x360x10 = 7,20,000/-
300 kWh per day for 2nd year: 300x360x10 = 10,80,000/-
500 kWh per day for 3rd year: 500x360x10 = 18,00,000/-
750 kWh per day for 4th year: 750x360x10 = 27,00,000/-
800 kWh per day for 5th year: 800x360x10 = 28,80,000/-
Total income for 5 years: Rs 91,80,000 /-. Of this, you need to invest Rs 4,59,000 for EVSE software management Fee. Thus your total income during the next five years will be Rs 87,21,000.
Epilogue: Based on the above calculation establishing a charging station for electric vehicles is a beneficial idea. However, for this, you need to have a strong financial background and the courage to invest a huge amount.
