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How to setup Profitable EV charging station

EV charging station

                                Electric Vehicles are the future!

The journey of Petrol/Diesel engine cars is astonishing. These cars have ruled over world for decades. So how can you believe that this trillion dollars business is now ready to shift from IC engines to Electric battery driven vehicles.

At first the quote above mentioned seems far away to become possible. But person like Elon Musk has proved that it is definitely true that “EVs are the future”.

You can see the stats of automobile companies, the biggest automobile company is now TESLA with the market cap of $570 billion far ahead from its competitor Toyota ($278 billion). And the other companies are now shifting their business towards EVs.

Many major players are now entered into electric vehicle business like Toyota, Tata, Hyundai, Ashok Leyland, Mercedes and many others. So the demands of EVs increasing that indicates that demand of EV charging station would also increase.


List of countries with the highest share of electric vehicles in new passenger car sales

EV charging station at Norway

1.      Norway (74.8%)

2.    Iceland (45%)

3.    Sweden (32.2%)

4.    Netherlands (24.9%)

5.    Finland (18.1%)

6.    Denmark (16.4%)

7.    Switzerland (14.3%)

8.    Portugal (13.5%)

9.    Germany (13.5%)

10.Luxembourg (11.4%)

China have 6.4%, US- 2.3 % and India have less then 1% penetration of EVs in automobile business.


With all these above mentioned factors still…

Why should you consider to start an EV charging station?

You should consider to start an EV charging station business because of these factors-

·       As per government, it is compulsory to set an EV Charging station at every 3km in cities and 25kms on Highways on both sides.

·       For long-range and heavy-duty vehicles, there should be a charging station at every 100kms on both sides of the road (mostly Highways). Also, India working on developing its mega project Delhi to Mumbai electric highway to boost industrial transport.

·       Under the implementation of FAME scheme (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles) Phase 2, Government of India is planning to install around 1000+ Electric Vehicle charging stations before 2023 and has already asked for bids from companies.

·       State governments are giving subsidies on Charging Station.

·       No need of license, any individual is free to set-up public charging stations, only that such stations meet the technical and performance standards and protocols laid down by the Ministry of Power and Central Electricity Authority.

·       At present we are nowhere as per these guidelines, So there is huge potential to make profit from EV charging station in near future. And early entry in any business is easy and more profitable.


How to setup an EV charging station

A setup of EV charging station

To setup an EV charging station you need to follow these steps-

1.    Identify the location for best profitability

If you’re a property owner of the places like malls, supermarkets, grocery stores, gym, residential area or any particular building with space then you should definitely go for a EV charging station. These places are the main locations for hosting EV station because of their potential customer base. Also you can take lease at these places to setup you EV charging station.

EV charging station in parking

2. Infrastructure/Approval Requirement for EV Charging Station

·       An exclusive transformer with all related substation equipment which includes plug-in nozzles, 33/11 KV cables (for metering and termination purposes) and also, circuit breakers the form of safety equipment.

·       A minimum space of 300 to 500 sq ft is required so 2-3 cars can be parked at a time.

·       Appropriate Civil works for conveniently parking of vehicles

·       Adequate space for charging and Entry / Exit of Vehicles

·       A clearance certificate required, that has been issued by the electrical inspector designated by the local distribution company.

·       A software required for remote monitoring, integration of payment gateways and online slot booking by the EV owners.


3. EV charging station setup Cost

The cost for complete setup is include leasing cost, Charger cost, Infrastructure development cost, Employee cost and Marketing cost.

1.      Land lease cost– It is around 30-50 thousand Rs per month as per location of charging station.

2.    Infrastructure cost– This include the civil works for comfortability of placing Electric vehicle. The basic cost is around 2-3 lakh, but it depends on how you want to develop the structure of EV station.

3.    Employee cost– 1 skilled and 1 unskilled staff required. That cost u around 4 to 5 lakh per annum. If you study the TESLA charging station it is based on software and required no staff, but the setup cost is very high for that.

4.    Marketing cost– In start you need to do some advertising for your new charging station that will cost you around 30-50 thousand Rs.

5.    Charger Cost– There are different kind of chargers available, But you need to find out what type of charger required for your station, basis on location and EV available around you.


Charger Type

Charger Connector

Power Output(KW)

Rated Voltage(V)

Charger Cost (Rs)



50 KW




50 KW



Type-2 AC

22 KW




Bharat DC-001

15 KW



Bharat AC-001

3 x 3.3 KW




6.    New Electricity Connection (250 KVA) cost – 7,50,000 /-

7.    EVSE Management Software with Integration cost – 40,000/-


It is up to you how much charger you want to install at your station. Total cost for EV setup as per above mentioned scenario is around 30 lakh.


4. Profitability in EV setup

Total capital required for setup of EV station is 30 lakh.

Now we have to calculate the total revenue generated from this setup and how much profit we will get after deduction of all running cost.


If EV station is delivering 18-20 hr service in a day then total KWH we can sell for above mentioned charger setup is-

(50 + 50 + 22 + 15 +9.9)KW x 20hr = 2938 KWH


Operation requirement

Cost (yearly)

1 Skilled staff

2,50,000 Rs

1 Unskilled labour

1,80,000 Rs

Network provider

6,000 Rs

EVSE software charges( 10% on electricity consumption margin )

Will decide as per operational scenario

Land lease (40000/month)

5,00,000 Rs


30,000 Rs

Total Operating Cost

9,66,000 Rs



Now to calculate our profit we are taking three scenarios of our EV station delivered output – 50% , 75%, 95% of total capacity.



As per 50% efficiency

As per 75% efficiency

As per 95% efficiency

Charging capacity of station per year —  2938kwh/day X 365 = 10,72,370




Margin on electricity tariff

3 Rs

3 Rs

3 Rs

Yearly Revenue

16,08,555 Rs

24,12,831 Rs

30,56,254 Rs

Yearly Operating Cost

9,66,000 Rs

9,66,000 Rs

9,66,000 Rs

EVSE management software charges (10% on electricity consumption margin)

1,60,855 Rs

2,41,283 Rs

3,05,625 Rs

Total yearly Operating Cost

11,26,855 Rs

12,07,283 Rs

12,71,625 Rs

Profit before Tax

4,81,700 Rs

12,05,548 Rs

17,84,629 Rs


Tax benefit in EV charging station

·       GST on EV charging station reduced from 18% to 5%.

·       Rebate in Income TAX upto 1,50,000.


Companies Providing EV Charging Station In India

Right now in India, approximately 10 major companies provide electric vehicle charging station franchises. You can choose any one of them if you want to set up a new business.

·       Tata Power (Mumbai)

·       Okaya power group (Delhi)

·       Volttie (Noida)

·       Numocity (Bangalore)

·       P2 power solution (Noida)

·       Exicom power systems (Gurgaon)

·       Magneta group (Navi Mumbai)

·       Charge my gaddi (Delhi)

·       EVQ Point (Bengaluru)

·       Charge+ Zone (Vadodara)


Tata EV charging station

o   TATA is one of the oldest and reliable companies from all the above names that provide you franchise.

o   If you want to interested in Tata then and you can contact on their business website. Or Click here

o   On the official page, you will see EV charging solutions that can be under the Tata Power company.

o   When you reach the official page there are three options available for you.

§  I am looking for an EV charging solution for fleet organizations, offices and workplaces, malls, and hotels.

o   According to your name, you can choose, and then click on the click here button.

o   You will be redirected to a new page which is basically a business inquiry page.

o   On this page you have to enter your name, company, phone number, email ID, department (Billing, HR, Project, SED, etc.).

o   Choose your option from the department section and then write a comment regarding your business goals and about the company.Then fill in the captcha code and click on submit button. The company will contact you automatically.



As per stats of countries electric vehicles penetration in market increasing day by day. That definitely indicates the potential of increasing demand of EV charging station. Countries like Norway shows the future of other countries in Auto industry.

Although in India only 1% vehicle are electric vehicle. But the vision of Government shows clearly that it will increase exponentially in next 2-3 years.

So this is the time to think about invest in Future, Because late entry in any business may not give you that much profit. 



Can you install a DC fast charger at home? 


Fast Chargers are expensive to install. While your local Distribution Company might allow access to fast charging at home, it must be noted that an EV’s battery can only take a limited number of fast-charging cycles before it starts to damage the battery. If a fixed charging spot and overnight charging are a possibility, a domestic fast-charging station isn’t necessary.


Can I charge my EV at any charging station?

You can charge your car on any charging stations that are compatible with your plug type (J1772, unless it’s a Tesla) and provided you have the right charge card or mobile app to access the station.


How long does it take to charge an EV at a charging station?

Charging an electric car can be done at home or at any public charging stations. Fully charging a car can be done in just 30 minutes, or it may take as long as half a day. How big your battery is, or how fast your charging point is may change the time required.


What is a Level 1 charging station?

A Level 1 EV charger is a cord or charging system that typically comes with the vehicle during purchase, can be plugged into a standard 230 V circuit wall outlet, and delivers an electrical current from the outlet to the vehicle via the connector.


Are electric car charging stations a good business opportunity?

Based on IHS, Global EV charging stations to skyrocket by 2021. The data revealed that increasing deployment of EV charger in future could translate to stronger demand for the facility, hence a good business opportunity. Plus, it could be considered as a very low capital business.



One thought on “How to setup Profitable EV charging station

  1. I do trust all of the ideas you have introduced to your post. They are very convincing and can certainly work. Nonetheless, the posts are very brief for starters. Could you please prolong them a little from next time? Thanks for the post.

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