The popularity of electric vehicles (EVs) continues to increase owing to factors such as their environmental friendliness, cost savings, advanced technology, and government incentives to embrace such modes of transport.
Because of these reasons, EV installation points need to be accessible to the drivers of these new-age vehicles. People who want to make extra income while continuing with their regular jobs can deploy them at homes and commercial spaces.
Introduction to Passive Income through EV Chargers
You can earn passive income in India through EV chargers by setting up private charging stations on a peer-to-peer sharing app or through channels. Owners of these EV charging stations can charge fees using subscription-based models or pay-per-use schemes.
Under the subscription-based model, EV users register for monthly or annual plans, which allow them to access a network of chargers by paying a fixed amount.
On the other hand, pay-per-use allows EV owners to pay every time they use these charging stations based on the quantity of energy utilized or the time spent charging their EVs.
Understanding the EV Charging Market
The value of the EV charging market in India by the end of 2023 was US$ 550 million, and it is expected to increase by a CAGR of 39.1% by 2030.
According to a report by Expert Market Research, in the financial year 2023-24, the total number of EVs sold in India touched 1,670,736 units, a rise from 95,198 units during the financial year 2017-18. This shows a traction towards electric transportation.
This provides a massive opportunity for individuals and units to provide EV charging solutions by setting up dedicated infrastructure.
Government Incentives and Support
The government of India is offering incentives and support to encourage the usage of EVs and to set up charging stations for them.
For instance, it introduced the scheme of Fame, or Faster Adoption and Manufacture of Electric Vehicles, to provide subsidies for EV chargers.
According to it, subsidies of US$ 120.48 and US$ 120,4.8 are provided to each slow charger and fast charger, respectively.
Meanwhile, the Union Ministry of Heavy Industries allotted US$ 95.3 million as capital subsidy to the three oil PSUs of Indian Oil (IOCL), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL) to establish 7,432 EV public charging stations. In addition, other organizations received sanctions to establish 148 EV charging stations, a press release of the Ministry of Heavy Industries released on December 8, 2023, stated.
Selecting the Right Location for EV Chargers
To boost the usage of EVs, the government of India (GOI) has stated that anybody in the country can establish an EV charging station, provided they comply with the key standards. Interested parties do not need to apply for a specific license to set up EV charging stations.
According to the infrastructure regulation that the government of India has released, there should be at least one EV charging station for every 3 km in cities and every 25 km on either side of the road. There should also be a minimum of one EV charging station for every 100 km on highways.
So, if you want to zero in on a location for setting up an EV charger, apply for a license and consider setting them up as per the regulation that the GOI has stated above. If you own vacant land that meets the criteria mentioned above or want to invest in the land bank of ThunderPlus, one of the developers of industry-leading EV charging products in India, you can start right away.
Types of EV Chargers and Their Revenue Potential
There are two main types of EV chargers in India: alternate current (AC) chargers and direct current (DC) chargers. In addition, there are four major types of EV chargers based on charging guns.
The type 2 charger manages input power, ranging from 3.3 KW to 44 KW, and is supported by a 400-volt AC supply.
A Combined Charging System (CCS) is a rapid charger for EVs that holds a maximum charge of 350 KW.
With the CHAdeMo EV charger, DC-fast charging of a maximum of 62.5 KW can be handled.
The government of India suggests using a GB/T type of charger for DC charging under the Bharat DC 001 Standard stated the Times of India. It was installed by EESL Energy Efficiency Services Limited, a government agency, and yields an output of 10–15 KW.
Currently, one EV charging station in India can expect to generate yearly revenues ranging from US$ 11,911.8 to US$ 16,867.5. The amount can increase significantly with the growing adoption of EVs.
Initial Investment and Cost Analysis
The investment required to set up an EV charging station in India will range from US$ 1,204.8 to US$ 6,204, depending on the kind of station being set up. Establishing a fast-charging station would be a minimum of US$ 23.800.
To set up public charging stations (PCS), the budget would range from US$ 6,204 to US$ 12,408 for connections and transformers of high-capacity. The expenditure for its construction and installation would be US$ 2,409.6 to US$ 6,204 and US$ 1,204.8 to US$ 3,614.4 would be the cost for installing the management and payment processing software of an EV charging station.
To install, manage, and operate EV charging networks seamlessly, ThunderPlus even offers you Thunder Connect, its advanced cloud-based platform.
Business Models for Generating Passive Income
EV charging stations with DC fast chargers are the most attractive business propositions in India.
The top business models for generating income from EV charging stations are as follows.
- Installing them on highways, shopping centers, and fuel stations
- Deploying subscription-based services to create a loyal clientele
- Adaptive pricing structures for commercial users, including ride-hailing service operators and delivery service companies
- Partnering with businesses, retailers, and other such organizations
- Offering rebates and incentives to all types of customers
Partnerships and Collaborations in the Industry
The mutually beneficial relationship between the public and private sectors is vital to increasing the adoption of EVs in India. Such tie-ups profit from a combination of capability and the right resources. While the private sector offers unique perspectives and novel solutions, the public sector, with its considerable clout, would bring in incentives and subsidies to complement the private sector’s initiatives.
The upshot is that it has been made possible for individuals as well as businesses to earn passive income in India by installing EV chargers. To know more about how it can be done, you can contact us at ThunderPlus, a company which produces EV chargers and provides charging solutions in India.