Electric Charging Station Franchise – Cost, Requirement, and More

The electric vehicle industry in India is booming these days. Since the Indian government has unlicensed public charging stations and has allowed any individual to set up such a facility, getting an electric charging station franchise isn’t a bad business idea.

There is only one condition that needs to be followed, and that is your public charging station should meet the technical and performance standards. Therefore, if you are planning to invest in a business like this, this article is going to be very helpful for you.

In this article, we are going to explain everything related to the electric charging stations franchise, including the cost of setting up the facility, EV charging station companies, minimum requirements, franchises, and more. 

So, without any further ado, let’s get started –

Electric Charging Station Franchise

Even though most of you are already aware of the basic idea behind it, we will still start with the basics, talking about what these charging stations are and why you should set up one. If you want, you can simply skip this portion of the article.

What is an EV charging station?

Electric vehicle charging stations are quite similar to regular fuel stations. The only key difference is that these stations are designed to charge the batteries of electric vehicles. An ideal charging station should be capable of charging both regular electric vehicles as well as hybrid vehicles.

Electric Charging Station Franchise
ev charging station franchise

There are also minimum technical and performance criteria that need to be followed to open an EV charging station. We will talk about that in the latter part of this article.

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Why the need of an Electric Charging Station?

One of the biggest concerns with electric vehicles is the range, which is also why people are suspicious about shifting to electric vehicles. A typical electric vehicle offers a range of around 100-200 KMs. This restricts the user from doing long-distance rides.

In the current scenario in India, there are not enough electric vehicle charging stations even in urban areas. Plus, using a 15A home socket takes around 6-10 hours to charge an electric car’s battery and around 2-4 hours to charge an electric bike’s battery.

ev charging station cost in india
ev charging station franchise

Obviously, when people are in their homes, they put their EV on charging overnight to fix this, but what if someone forgets to do so? Plus, people have to park their vehicles in the parking area in urban areas, and most parking areas don’t have enough electric sockets.

An easy solution for all these problems is the electric vehicle charging stations. They feature fast charging solutions that reduce the charging time drastically. Plus, if there will be a decent network of EV charging stations, people will not be afraid of doing even long-distance rides on their electric vehicles.

It will also encourage people to shift to electric vehicles without any hesitations. Lastly, do not forget that the electric vehicle industry is booming, and setting up a business around it will definitely help you bank profits. So, yeah, these are the reasons one should consider setting up a charging station.

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Minimum Requirement To Set up an Electric Charging Station Franchise

Even though the government of India has unlicensed setting up public charging stations and has allowed anyone to set up one, there are certain guidelines that need to be followed to take up an Electric charging station franchise.

The minimum requirements to set up such a facility are as below –

  • You will also need an exclusive transformer and an adequate amount of space for charging and parking vehicles.
  • Create a tie-up with at least NSPs in order to encourage remote or online booking of the charging slots at the station.
  • Based on the location, there needs to be at least one charging station available of a grid of 3km x 3km.
  • Each charging station must have at least three fast chargers. One of these must be CCS which will be required to operate on 50 kW, 200-750V. The other one must be CHAdeMO, and this one will also operate on 50 kW, 200-500V. The last fast charger must be Type-2 AC which will operate on a minimum of 22 kW, 380-415 V.
Electric Charging Station requirement

These are the minimum requirements you can look at. Moreover, you can include more chargers if you want.

Now, since we have discussed the minimum requirements to set up an electric charging station, let’s discuss the estimated cost.

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Cost of setting up an Electric Charging Station

Since now, we have a list of minimum stuff that will be required to set up a charging station; we can calculate an estimated cost for it. Note that everything mentioned below is an estimated cost and can vary, depending on your location, needs, and more.

Capital Expenditures for Chargers

So, here is a basic idea of all you need to know about the capital expenditure of the chargers.

Type of chargerNumber of unitsApprox. Cost in INR (Including GST)
CCS114,50,000
CHAdeMO114,50,000
Type 2 AC11,25,000
Bharat DC-00112,40,000
Bharat AC-001170,000
Total533,35,000

Along with chargers, you also have to spend some money on other essential things. An approximate cost for that is as below –

ParametersApprox Cost(INR)
New electricity connection, transformer, cabling, panels, breakers, energy meters, etc.7,50,000
Civil works such as flooring, branding, painting, etc.2,50,000
EVSE Management Software40,000
CCTV Camera Setup30,000
Total10,70,000

Basic Idea on the Operation Cost of Charging Stations

So, it was the total capital expenditure for setting up an electric vehicle charging station, but you also have to bear the operational cost, which will be as below –

ParametersApprox Cost(INR)
Technician (1 Technician for at least first six months at a salary of 25K/month)1,50,000
Site maintenance staff (1 person at a salary of 15K/month for a year)1,80,000
Network Service Provider Fee6,000
Land Lease at 50K/month for a year (If you don’t own the land)6,00,000
Advertisements, posters, and more36,000
Total 9,72,000

So, if we make a total of capital expenditure and operational cost –

ParametersCost(INR)
CAPEX for Chargers33,35,000
CAPEX for other essential things10,70,000
Total OPEX for a year9,72,000
Total 53,77,000

So, to set up and run an EV charging station for a year, a total cost would range somewhere between Rs 50 lakh to 60 lakhs. Note that this is an estimated cost, and there could be a lot of things that would affect the total cost to set up and run an EV charging station for a year.

Furthermore, even though the government of India has allowed anyone to set up an EV charging station on their own, taking a franchise can make it much easier to set up and run.

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Electric Charging Station Franchise Companies

Currently, in India, there are five reliable franchise companies that you can go with to set up an electric vehicle charging station. The franchises are as below –

electric charging station franchise cost in India
PlugNGo Charging Station

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Closing Comments

There you have it – a detailed guide on the electric charging station franchise.

The EV market is rapidly growing, and so is the need for EV charging stations. Even the government of India has taken multiple initiatives to promote and encourage the usage of EVs, and it seems like electric vehicles definitely have a bright future in India.

The mass adoption of electric vehicles has also introduced multiple money-making opportunities, and setting up an EV charging station is one of them.

With that said, here I am wrapping up this article. If you have any questions, feel free to shoot them in the comment section below. Our team will try to respond to all your comments ASAP.