Opening an EV Charging Station Franchise in India: The Ultimate Guide

The demand for electric vehicles in India is fueling rapid growth in the EC charging station market. With supportive government policies, advancing technology, and a shift towards sustainable transportation, this sector presents a lucrative business opportunity. This guide will provide a detailed overview of the planning and strategic execution you need to start this business.

The EV Charging Market in India

India’s electric vehicle charging station market is rapidly evolving. It is driven by the government’s initiatives, increased consumer interest, and technological advancements. Programs like FAME India (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) aim to create a steady charging infrastructure. This reduces the dependency on fossil fuels and improves air quality.

Charging Types and Costs:

• Slow chargers are cost-effective but have longer charging times, suitable for residential or low-traffic areas.

• Fast chargers are ideal for urban areas with moderate traffic and a higher demand for quicker charging.

• Superfast chargers are costly but necessary for highways or busy hubs to minimize wait times.

Government Support

• The EVIDP (Electric Vehicle Infrastructure Development Program) focuses on building a comprehensive network of public and private charging stations.

• Subsidies under the FAME India scheme and state-specific incentives make setting up a station financially viable.

You can partner with top companies that offer EV charging franchises like Tata Power (Mumbai), Volttie (Noida), and EVQ Point (Bengaluru), among others.

How to Get a License for an EV Charging Station

The Indian government has made setting up EV charging stations a license-free process, simplifying entry into the sector. However, the following guidelines must be adhered to:

• Compliance with technical standards set by the Ministry of Power.

• Adherence to safety and operational norms, such as proper fire safety measures.

Though no formal license is required, collaboration with electricity distribution companies (DISCOMS) for connection and permits ensures smooth operations.

Government Policy on EV Charging Stations

To promote widespread EV adoption, the government has introduced clear guidelines for EV charging stations:

• Charging stations are planned every 3 km within cities, 25 km along highways, and 100 km for heavy vehicles.

• Electricity tariffs for EV charging will remain economical until at least 2025.

• Approval timelines for new connections have been streamlined to as low as seven days in metro areas.

• Public charging stations must enable online booking systems to improve customer convenience.

Requirements to Install EV Charging Station

Legal Requirements:

• Membership with the Central Electricity Regulatory Commission (CERC).

• Permits from State Electricity Regulatory Commissions for specific charger levels such as Level 2, AC, or DC as required.

• Approvals from local municipal and urban authorities for land use.

• Necessary planning clearance for public locations like malls, office buildings, or highways.

• You would need an NOC from local authorities, and a Building Permit/Right of Way (ROW)/Trade License from municipal local authorities.

• Compliance with the Electricity Act 2003 regarding safety and operational standards.

• Fire Safety Certificate from the relevant authority.

• Liability insurance to cover potential risks and legal liabilities.

Infrastructure:

• A minimum space of 300 square feet (can vary based on franchisor specifications)

• Requires a purchase agreement for owned land and a lease agreement for rented land.

• A dedicated substation or transformer for stable power supply.

• 33/11 KV cables for power supply.

• Installation of safety systems like circuit breakers and fire extinguishers.

• Parking areas for vehicles being charged.

• Compliance with international and local standards for charger installations.

Location Selection:

• Opt for high-visibility areas like shopping malls, highways, or busy commercial zones.

• Ensure accessibility with adequate parking space and clear signage.

Equipment and Software:

• Chargers: Install a mix of AC and DC chargers to cater to various EV models.

• AC Chargers: Lower capacity but cost-effective. The capacity of these chargers ranges from 3 kW to 22 kW with a charging time of 6 to 7 hours.

• DC Chargers: Faster chagrin options for premium service. The capacity ranges from 11 kW to 360 kW. Charging times usually vary with 11-25 kW chargers may take 4 to 6 hours whereas 90-360 kW may take 20 to 30 minutes to charge.

• Monitoring Tools: Use software for real-time monitoring and billing systems for automated customer payments.

Amenities:

• Include basic facilities like restrooms and seating areas.

• Offer value-added services such as vehicle cleaning or minor maintenance to attract more customers.

Electric Car Charging Station Setup Cost in India

The costs for setting up a charging station vary based on the location and scale.

Infrastructure Costs:

• Land Lease: Rs. 6,00,000 annually.

• Transformers and Electricity Connections: Rs. 7,50,000 annually.

• Maintenance: Rs. 3,00,000 annually.

Charger Costs:

• Bharat AC (Rs. 65,000) and DC (Rs. 2,47,000) chargers are economical options.

• International chargers like CHAdeMO cost over Rs. 13 lakhs but support faster charging.

Investments in marketing and safety equipment like fire extinguishers should also be factored in. By planning effectively and leveraging government support, entering the EV charging business in India can be a profitable venture while contributing to sustainable mobility solutions.

How to Start a Commercial EV Charging Business

Follow the step-by-step process in order to start your EV charging business:

1. Choose a Franchisor: Research potential franchisors by evaluating their terms, financial performance, and customer reviews. Review the Franchise Disclosure Document (FDD) for detailed insights about the EV charging station business models and how the business functions.

2. Application Process: Submit an application with details like location, business background, and investment capacity. You need to attend interviews or discussions to clarify the franchise model and expectations.

3. Agreement and Documentation: Sign the franchise agreement and provide identification documents such as PAN or Aadhaar card. Ensure you receive a copy of the signed agreement for reference.

4. Training and Setup: Participate in training programs to understand the operational aspects, from using the software to customer service techniques. Collaborate with the franchisor's support team to establish the infrastructure and operational framework.

EV Charging Station Guidelines

• Public charging stations must adhere to the Ministry of Power standards for performance and safety.

• Partnerships with online service providers are encouraged to enable slot bookings for users.

• Tariffs must not exceed the average cost of supply, ensuring affordability.

• EV charging stations can obtain electricity directly from generation companies or DISCOMS.

Conclusion

Setting up an EV charging station franchise in India is a rewarding venture, providing you align with market demands and regulatory standards. From choosing the right franchisor to ensuring proper infrastructure, each step plays a vital role in success. With adequate funding and strategic planning, your business can thrive in this expanding sector. For entrepreneurs, leveraging gold loans from India Gold can be a reliable funding option. It can provide you with the financial foundation required to kickstart this promising venture.