EV Charging Station Business Opportunities in India
India comes under the classification of a developing country. Do you know what sectors are developing in India? The current sales of electric vehicles in 2022 were 3.21 billion USD.
It will hit a CAGR of 66.52 percent in the prediction years of 2022 to 2029, with sales rising to 113.99 billion USD. Thus, electric vehicles (EVs) will make up a mass percentage of new car sales worldwide and in India by 2040. This sale will account for 33 percent of all the light-duty automobiles in the market.
What about the charging infrastructures for electric vehicles? Electric vehicles depend on efficient charging facilities and chargers. Companies across the globe are focusing on the Indian market.
That will augment their business in-country in the coming years. It will overcome the problem of insufficient charging infrastructures for EV users in India. This article will discuss the opportunities to exceed in the charging station market in India with business insights.
Steps to follow that can boost business to flourish in the charging station market in India
Guidelines to follow before landing into installing an electric vehicle charging station:
- Owners of EV charging stations must set up at private places and offices, and the electricity DISCOMS must enable the same.
- They do not need to own any specific licenses for setting up public EV charging stations. According to the guidelines, individuals or organizations can set up freely in any applicable public area.
- The Ministry of Power and the Central Electricity Authority set some performance standards for the electric charging stations.
- The Electricity Distribution Company will approve a specific location. They will accept and allow the installation of a public EV charging station if any individual or entity requests connectivity.
- The Electricity Generation and Supply Company will directly grant the power supply for EV charging stations.
Businesses can set up EV charging infrastructures in India by heeding the above guidelines
Installers must ensure efficient ideas and insights to make the charging business successful. EVs are the only option for us to make an eco-friendly, low-maintenance, cost-effective, smooth solution toward sustainability. Thus, ensuring the opportunities to flourish in the EV charging business can help India reach the target demand. Following are some steps that can help businesses with requirements to set up charging infrastructures:
Checking the Availability of Land:
When someone wants to install an electric vehicle charger, the plan becomes successful by walking the right track. Commercial installations make more sense for EV companies for advertisement, brand marketing, and more profitable revenue sharing as there are more footfalls. It will be a brilliant idea and opportunity for charging stations to flourish in this field.
Examine the Infrastructure Distance:
Before starting the installation plan, it is also essential that every installer inspect the overall distance of the installed infrastructure from the main road. So, installers must select only those areas with optimum traveling distance. They must supply an ample parking area where EV users can easily park cars or other vehicles while charging. Charging owners must also provide electric panels in the parking spaces for fast and efficient charging.
Experts Handling the Installation:
Ensure that experts must handle all the civil works and installations. It is one of the most critical aspects of utilizing the opportunity properly. It guarantees safety and saves the customers from potential troubles in the future. Electricity is the primary aspect of the charging station. So, they will preserve a proper electricity connection with all charge requirements that support EV charging. The civil works fit in the bracket of two to three lakhs.
Once the installation gets completed, charging station owners must do a trial run. It will allow them to get oriented with chargers and other concerned procedures. Then, they need to check whether the chargers are working and the battery is getting charged.
Charging station business Insights in India
Installing a proper charging infrastructure can boost business growth. Now you will ask, what are the business opportunities in this ecosystem in India? These business opportunities are related to the electric vehicle charging infrastructure business. The article will discuss a more elaborate measure in this field.
Despite what we have stated earlier in this article can install an efficient charging infrastructure for EV users. The first opportunity is to implant a domestic and public charging infrastructure. These infrastructures must be in residential areas like houses and flats and public places like hotels, malls, etc.
Secondly, adding smart and innovative chargers can count for efficiency. These measures include battery-swapping techniques. This technique involves batteries that the charging station service handlers will swap for charging with another charged battery. Rather than powering the batteries conventionally or using solar charging, they use this fast technique.
It is more environmental-friendly and time-efficient. It substitutes traditional electricity resources with the electricity induced by solar energy. Digging deeper with business insights like dealerships can be great for growing the business. It is a flexible opportunity for Indian newbie businesses to participate in the electric car charging stations market. The scope is endless and profitable, dealing with a reputed EV franchise.
Indian Government Subsides and Incentives for Promoting EV Charging Stations
In India, there are 4000+ EV charging stations. But these are not sufficient to meet the requirements of charging electric vehicles. It is evident that India needs to push the growth of EV charging stations by increasing the supply in the market. According to Statistical research, India needs 2.9 million charging stations.
It will boost the industry to reach the expected exponential growth from 2025 onwards. Thus, the Indian government must take incentives to promote the evolution of EV charging stations.
Recently, the Indian government designed schemes and initiatives to promote EV charging infrastructure business opportunities in India. The government of India launched the FAME-2 scheme with an outlay of 100 billion in Indian rupees (1.22 billion USD). It aims to boost the demand for EVs. The Indian government will reportedly offer subsidies to the installers installing charging stations.
It provides upfront subsidies and creates EV charging infrastructure. The scheme offers private companies 50 percent to 100 percent of subsidy of the total charging station outlay. The rate is for the first 5000 public charging infrastructures installation. The plan by the government will emphasize manufacturers for innovations and open up specific segments for EV charging solutions.
Apply for EV Charging Station Loans in India
Due to the push for sustainability development, many private companies and the government have come up to boost the EV charging station industry. But the initial setup cost for installing a charging station can be high.
Thus, entrepreneur requires applying for a business loan. It helps them to cover the startup cost and recurring annual income. Several Indian companies provide these loans, opportunities, and equipment. The following steps will apply for a business loan to set up an EV charging station:
- The business must have at least six months of operational activities to apply for EV loans. The time will count till the time of application for the loan.
- They will get a monthly interest of 1 to 2 percent.
- The loan has tenure of 36 months. But one can expand the time up to four years as per requirement.
- Businesses can pay at least one EMI before prepaid paying for EV loans. There are no preclosure charges.
- Checking eligibility for the loan amount, interest, and tenure is a must. Candidates must check this before applying for the EV loan and fill up the downloaded application.
- While visiting the loan-providing companies, candidates must get the required documents ready. The companies will help them fill out the form and offer their best services.
- The companies will scrutiny and examine the documents for loans. They then provide the best interest rates and financing and inform the candidate about the assurance.
Explain various programs introduced by the Indian government to promote EV charging stations.
The citizens of India can now believe in the EV market and the revolution of charging stations. The Indian government has initiated 360-degree proactive measures. It will improve public charging infrastructure and encourage private and public agencies to promote sustainability. The government has emphasized its focus initially on these nine megacities.
These cities have a population of over 4 million. The Indian government has launched these aggressive measures through various implementing agencies. These have resulted in rapid development in the deployment of public EV charging stations.
Further, the Indian government added 678 public charging stations between 2021 October to 2022 January. These installations were in nine megacities. The number of charging stations has grown 2.5 times the earlier numbers. Within the same period, the government also introduced 1.8 lakhs new electric vehicles adding to the development of the Indian EV industry and sustainability.
The improvement has exhibited greater trust and innovations for consumers to shift towards electrification. The Indian government has further plans to expand the EV charging industry to other cities in a phased manner. The initiatives will take place after the saturation of EV stations in these megacities.
The Ministry of Power provided the following guidelines on EV charging infrastructure and standards on January 14, 2022 –
- The public EV charging station operators and owners must follow the affordable tariff chargeable according to the following amendments.
- EV users can charge their electric vehicles at residential and business places like offices, schools, universities, etc. They only need their existing electricity connections.
- EV businesses must follow the revenue-sharing guideline for land use. It allows them to install a public charging station. They can financially offer to charge services to customers viable from an operational perspective.
- The government has prescribed timelines for connectivity to the Public Charging Station (PCS). It will boost the faster rollout of electric vehicle public charging.
- Businesses must follow all the technical requirements for public charging infrastructures.
Change can be good if business owners embrace it accordingly. India serves the highest share of electric vehicle charging stations globally. But businesses must correctly utilize all these business opportunities to rule the market.
There is a need for easily accessible charging locations. Professional workers will guide charging station business owners on the right track. They will direct them with government guidelines required to understand before installation.
Lastly, maintenance and repair are the top priorities for charging stations. According to different reports and statistics, the globe has millions of public charging points. The count involves India accounting for only 0.1 percent. Thus, businesses finding the right field to flourish can opt for the electric vehicle sector. It could be an excellent business opportunity.