Making Money with EV Charging

Whenever we talk about EV adoption amongst regular people. The conversation inevitably leads to concerns about charging infrastructure. At times it feels like beating a dead horse, but in a way, it is a necessary conversation to have. Not just because of the problems people face when trying to find reliable EV charging. But also, the money-making opportunities that come with developing said charging infrastructure.

This is a part of EV charging that most people don’t even concern themselves with. Since it seems like such a foreign concept. Mostly because traditional petrol pumps are so highly regulated in our country. With licenses costing hundreds of thousands of rupees and lasting for years at end. Which means that unless you already have a license and a petrol pump. It is a rare chance that you will be able to get into this type of business. Just by putting in an application.

Thankfully, EV charging is not so hard to get into. Sure, you will have to pay a huge amount in upfront costs. Related to setting up the location, and dealing with the DISCOM’s and EVSE vendors. And general day-to-day expenses of running and maintaining the location. But it will take a lot less land than traditional petrol pumps. And will also offer more consistent returns. Without any worries about transport issues related to re-fueling. As long as the electricity keeps flowing and the chargers don’t break.

Government Policy on EV Charging

The government is also actively encouraging people to invest in new EV chargers. As we are building the entire EV network up from scratch. And government investment alone will not be enough to get the number of chargers we will need. To match the demand for EV charging that we are expecting to see in the next decade or two.

Towards this end, they have made it so that you don’t even need a license to build your own EV charging spots. At least not in the traditional sense. You will still have to get in contact with the local DISCOM’s that are handling these issues. And get an electric inspector to sign off on your equipment quality and safety standards.

But other than that, the process is pretty straightforward. With none of the hassles often associated with tender-based petrol pump allotments. In fact, in most cases the government isn’t even looking for greenfield projects. With a larger focus on upgrading existing parking locations to fit the needs of future EV’s.

To ensure this happens in a timely manner. The government has started putting pressure on building and housing societies. To devote a certain amount of space for EV charging. These locations will be technically considered as semi-public charging spaces. And will have to devote 20% of their overall parking space. To EV parking and charging infrastructure.

As well as create additional power capacity to match the electricity requirements. In most cases, this will be equivalent to the amount of power needed to run all chargers at once. With an additional safety buffer of 1.25 times the expected capacity.

Public EV Charging

Even though semi-private charging spaces will handle the lion’s share of EV charging. The primary concern related to EV charging is about the public charging infrastructure. Because the range anxiety related to EV’s is often associated with a lack of public chargers.

This is why the government is further planning to deploy a grid of public chargers in all major cities. With the hope that you will have at least one charging station available. In a grid of 3km x 3km. So you don’t have to travel too far to get plugged in. On major highways, this grid will have a charger at every 25kms increment. On both sides of the road.

Of course, some companies won’t mind opening their semi-public chargers to more people. If it means that they can make some money. But here we are talking about dedicated EV charging locations. That will need proper investment to setup. And will function as the primary means of income. For the people who operate these locations.

You too can become part of this growing network. By investing in your own EV charging location. In this article, we break down all the costs that are generally associated with this. And what kind of profits you can expect to make on this investment.

Minimum Charging Infrastructure Requirements

At present, only a few companies are successfully operating public EV chargers. With a handful of locations scattered across major metro cities. Even in these locations, the quality and number of chargers available in arbitrary. With some places only featuring wall mounted slow chargers and no dedicated parking. While others offering fancy spots with proper signage and security arrangements.

This is a bit inconsistent when you compare it with traditional fueling stations. That require a set amount of infrastructure and facilities to be functional. The government is trying to adopt a similar standard for EV charging spots. With new locations expected to have a minimum of 3 fast chargers, and 2 slow chargers. You will also need an exclusive transformer, with 11/33Kw wiring to handle this load.

This isn’t just a random number of chargers that they picked either. As each charger will have to support a different charging standard. From major international ones like CCS and CHAdeMO. To Indian ones like Bharat AC and DC. Here is a chart that will give you an idea of what that entails.

This is just the minimum requirement for EV chargers. Businesses can scale this model up to handle all kinds of EV charging needs. Especially if they’re located in a densely populated area. That is expected to see a larger volume of EV’s on the road. You will still need to have a set number of chargers for a set number of EV’s. Here is how you can calculate your own requirements, based on your goals.

Non-Charging Infrastructure for EV Charging Spots

Charging infrastructure may be the biggest concern for EV owners. But that doesn’t mean charging stations can get away with providing the bare minimum. They will also need proper parking spaces, branding, and security infrastructure. This is often called the civil work aspect of EV chargers.

The government has released detailed guidelines on how these setups will function. The general consensus is that each parking bay should be at least 5 x 2.5 meters. However, you must also add enough space for vehicle circulation. Which is equivalent to 23 to 32 square meters. Depending on whether it is open parking or in a basement. This will give you a rough idea of what kind of space you will need to allot per location.

In off-street applications, this kind of setup is at least expected to have 4 parking bays. 2 for cars, and another 2 for two and three wheelers. If by chance you are planning to launch chargers in denser urban environments. Where the only option you have is on-street parking.

Then the design will shift to include 6 individual bays. With 2 bays for cars, occupying the usual amount of space. And another 4 bays for scooters, that need a smaller space of around 2.5m x 1.4m. Since they can be easily parked perpendicular to the sidewalk.

Of course, you will need even more space for the charging equipment and transformers. Here is a chart to help you calculate that, based on your expected charging load.

Setup Cost

Even though these land requirements are a lot less than traditional petrol pumps. Which have lot more open space to house the massive fuel tanks that are often buried underneath. That doesn’t mean that it will cost you any less to get this kind of setup, up and running. EV chargers themselves are pretty expensive. With additional costs associated with charging software licenses and third-party network integrations.

Not to mention the costs related to the day-to-day operations of a re-fueling station. Where customers are now expected to stay for longer intervals. While their vehicles charge up. All this can add up to a lot of money. But for now, let us only focus on the basic cost of EV chargers. So, you have an idea of where you can start off with. Here is a chart of the average costs of the different types of chargers available on the market today. This will help you get an idea of what kind of investment you will need to get started in EV charging.

We are not including the costs related to the civil work we mentioned above. Since the amount of money people spend on those aspects if often subjective. With some place only offering bare bones charging. While others come with attached lounges and restaurants where customers can relax while waiting. This is just to give you an idea of how much you will spend on chargers. And the kind of electricity load that will come with them.

The Science Behind Electric Vehicles Charging

Expected Revenue

It is understandable if you are a bit intimidated after adding up all those figures. But the good thing is that most of these costs are only one-time expenses. Which will give solid returns for years to come.

Considering the expected volume of EV’s to come into the market in the next decade or two. You will be able to easily recover these costs in 3-6 years. To give you an idea of how that will play out. We have created a chart that considers three different scenarios of EV charging. You can calculate your own expected profits based on whatever scenario fits you best.

Delhi Govt to begin single window facility for EV-charging scheme

Of course, this chart doesn’t include the day-to-day running and maintenance costs. But those can shift over time, so it is hard to give an accurate estimation of how much it will take out of these potential revenue figures. You will get a better picture once you actually start running your own EV charging station.

Considering the challenges facing the EV market today, and the long road ahead. We don’t expect these kinds of investments to become mainstream anytime soon. But they will certainly begin to make more sense a few years down the road. When most major automobile manufacturers have launched their own EV lineups in India. That is a future we cannot wait to see. Which is why, we at Renewables India, are always excited to report on all the new developments in this field. To help you better understand how green technologies will change our lives for the better.