How to Start an EV Charging Station in India – Cost, License, ROI

how to start an ev charging station in india

Let’s be honest, we all know India is a two-wheeler and four-wheeler-obsessed country. The hum of petrol engines is pretty much the background score of our lives. But things are changing—fast.

The government has set ambitious EV adoption targets for 2030, aiming for 30% of private cars, 40% of buses, and 80% of two- and three-wheelers to go electric. That’s not a small shift—it’s a tidal wave coming toward us.

Now here’s the kicker: while EV sales are booming (Tata Nexon EV, MG ZS, Ola scooters are flying off showrooms), the charging infra is still way behind. For every EV on the road, there just aren’t enough charging points. And this mismatch? That’s your golden opportunity.

Starting an EV charging station in India right now is like opening a petrol pump in the 1960s—it’s early, but the ones who start now will dominate later.

Table of Contents

Types of EV Charging Stations in India

pic of an ev car getting charged in a charging station

Before you jump in, you’ve got to know what kind of charging station makes sense.

A. Home Charging vs Public Charging

  • Home charging: Great for individuals, but not really a “business” unless you lease out charging access.
  • Public charging: where the money is. This includes highway hubs, malls, parking lots, and even small roadside setups.

B. AC Charging (Slow/Normal)

  • Cheaper to set up.
  • Takes 6–8 hours to fully charge a car.
  • Works best for offices, apartments, and overnight parking lots.

C. DC Fast Charging (Commercial Use)

  • More expensive, but charges cars in 30–90 minutes.
  • Essential for highways, urban quick stops, and commercial fleets.

D. Battery Swapping Stations (Emerging Trend)

  • Still niche, but gaining traction for two-wheelers and e-rickshaws.
  • Instead of waiting to charge, drivers just swap their empty battery with a full one.

Market Potential & Profitability

The Indian EV charging infrastructure market is projected to grow at a CAGR of 36%+ till 2030. Cities like Delhi, Mumbai, Pune, Bangalore, and Hyderabad are already hotspots. Highways under NHAI’s EV corridor project are next.

Profitability? Well, it’s a long-term game. A small station may make ₹50,000–₹1,50,000 per month, while larger highway hubs can cross ₹5–10 lakh monthly once utilisation picks up.

And here’s a fun fact: Tata Power already crossed 1000+ charging stations in India, yet the demand-supply gap is so huge that new players keep entering.

EV Charging Station Business Models

Not every entrepreneur needs to start big. Here are options:

Own & Operate Your Station

  • You buy the land, equipment, and run the show.
  • High control, but high investment.

Franchise / Tie-up with EV Brands

  • Companies like Tata Power EZ Charge, Statiq, Charge+Zone, and Ather Grid offer franchise or partner models.
  • Lower risk, fewer headaches in operations.

Charging-as-a-Service (CaaS)

  • Think of it like Uber for charging. You don’t own everything, but you provide the infrastructure and get revenue sharing.

Solar-Powered EV Charging Stations

  • Popular in tier-2 cities with land availability.
  • Cuts down electricity bills + green branding advantage.

Investment & Setup Cost Breakdown

Let’s talk money 💰 (because at the end of the day, ROI matters).

  • Land cost: If you own it, great. If not, leasing in a prime spot = ₹30,000–₹1 lakh/month.
  • Equipment cost: A DC fast charger (50kW) = ₹15–20 lakh. AC charger = ₹1–2 lakh.
  • Transformers, meters, wiring: ₹5–7 lakh.
  • Installation & civil work: ₹3–5 lakh.
  • Software & backend integration: ₹2–3 lakh.
  • Licensing & compliance: Minimal, maybe ₹50k–1 lakh.

👉 So, a small AC-based EV charging setup can start at ₹5–6 lakh, while a full-blown DC fast charging hub can touch ₹30–40 lakh.

Step-by-Step Guide to Starting an EV Charging Station in India

pic of a ev charging station

So, you’ve been hearing all the buzz about electric vehicles (EVs). From Ola scooters to Tata’s EV cars, the industry is booming. And with more people switching from petrol to electric, one thing is crystal clear—India needs a LOT more charging stations.

If you’re an entrepreneur or just someone curious about starting a new business, setting up an EV charging station can be a golden opportunity. Let’s break it down step by step—without the confusing jargon.

Step 1: Do Some Market Research

Before you spend a single rupee, look around your area.

  • Are there many EVs already?
  • Do you live in a city with growing EV adoption?
  • Are there existing charging stations nearby?

If the answer looks positive, you’re on the right track.


Step 2: Choose the Right Location (the #1 success factor)

Just like real estate, location is everything. Your charging station should be:

  • Traffic & dwell time: Near multiplexes, food streets, malls, hospitals, IT parks, airport corridors, and ring roads.
  • Power access: Feeder capacity, proximity to transformer room, ability to upgrade sanctioned load quickly.
  • Visibility & access: Corner plots, easy entry/exit, night lighting, CCTV, and washrooms/coffee (keeps dwellers happy).
  • Competitive scan: Check EV Yatra/aggregator apps for nearby chargers, tariffs, ratings.

Step 3: Decide the Type of Charging Station

Not all EV charging stations are the same. Here are the broad types?

  • Public AC charging (7–22 kW): Lowest capex; good for offices, malls, apartments, and cinemas.
  • DC fast charging (30–150 kW): Higher capex, high throughput; ideal near highways, fuel pumps, busy city nodes.
  • Battery swapping (mostly 2W/3W): Operationally heavier, works in dense delivery/e-rickshaw clusters.
  • Franchise/Partner model: Tie up with networks (listing/roaming, payments, software, sometimes hardware) to reduce go-to-market friction.

Pro tip: In 2025, a single 50–60 kW CCS2 charger near a major arterial road is the sweet spot for early utilisation.


Step 4: Power & permits (what you actually need)

No separate electricity license for EV charging (de-licensed activity). (Source)
You do need:

  • New/augmented electricity connection from the DISCOM (sanctioned load as per your charger kW).
  • Local municipal permissions for civil works, signage, and parking/entry changes.
  • Fire safety and earthing compliance; adhere to electrical safety codes.

Registration/Discovery: Public chargers are to be registered with BEE via state nodal agencies/EV Yatra, enabling discoverability and compliance tracking.

The good news? The government is encouraging EV infrastructure, so the process is easier now than a few years ago.


Step 4: Build your cost sheet (ballpark)

Single-bay DC fast (≈60 kW CCS2) urban site>

  • DC fast charger: ₹15–20 lakh
  • LT panel, cabling, earthing, metering, civil works: ₹8–10 lakh
  • Transformer upgrade/demand charges (site-dependent): ₹2–5 lakh
  • Software (OCPP CSMS), networking, signage, bollards, CCTV: ₹2–3 lakh
  • Total: ~₹28–38 lakh

Public AC site (dual 22 kW Type-2)<

  • Two AC posts + install: ₹4–6 lakh
  • Infra/civil/signage/networking: ₹1–2 lakh
  • Total: ~₹5–7 lakh

GST on charger hardware is 5% (helps cash flow vs other industrial gear).


Step 6: Look Into Government Subsidies

Here’s the sweet part—the FAME II scheme and state policies offer subsidies on EV infrastructure. Some states even offer loans with lower interest.

So before you borrow from a bank, check these schemes first. It can save you lakhs.


Step 7: Tie Up with EV Companies

Want to attract more customers? Partner with:

  • EV manufacturers (Tata, Mahindra, Ola, Ather)
  • Food courts, malls, or hotels
  • Apps like ChargeZone, Statiq, or Tata Power EZ Charge

This makes your station visible on maps and apps, so EV users can easily find you.


Step 8: Plan Your Revenue Model

“How will I make money?” Great question.

  • Pay-per-use: Customers pay per unit of electricity.
  • Membership model: Frequent users buy monthly plans.
  • Ad revenue: Put up digital screens/ads at your station.

With EV adoption growing, your ROI can come within 2–3 years if your station is well-placed.


Step 9: Promote Your Charging Station

No business survives without marketing.

  • List your station on EV charging apps.
  • Put up signboards on nearby roads.
  • Use Google Maps & social media ads.

Remember, the first customers will always come from online search.


Step 10: Keep an Eye on the Future

EV technology is evolving fast. Tomorrow’s chargers might be wireless or even faster. So, stay updated with industry news and keep upgrading.

Government Support & Subsidies

The government is all in for EVs.

  • FAME II Scheme: Provides subsidies on charging equipment.
  • GST Benefits: Chargers are taxed at just 5% GST.
  • State EV Policies: Delhi, Maharashtra, Karnataka, and Gujarat give additional incentives.
  • EV Mitra Loan Scheme: Helps small businesses set up charging infra with easy financing.

Revenue Model – How Do EV Charging Stations Make Money?

  • Per Unit Charging Fees: Average = ₹15–₹20 per kWh.
  • Subscriptions/Memberships: Offer discounted plans for frequent users.
  • Advertising: Digital screens at charging hubs, branding on chargers.
  • Add-on Services: Cafés, rest areas, EV accessories shop.

ROI & Profit Margin Analysis

A 50kW DC charger can charge 15–20 cars daily. That’s roughly ₹8,000–₹12,000/day = ₹2.5–3.5 lakh/month.

  • Payback period: 2–4 years.
  • Profit margins: 15–25%.
  • Bigger hubs = faster ROI due to higher utilisation.

Challenges in the EV Charging Business

  • High upfront investment.
  • Electricity reliability in smaller towns.
  • Competition from big players (Tata, Reliance).
  • Consumer behaviour (range anxiety is still real).

Future of EV Charging Business in India

  • Ultra-fast chargers (350kW) will become mainstream.
  • Wireless charging pads may soon hit the roads.
  • Renewable-powered stations will dominate rural setups.
  • AI-powered demand management will make stations smarter.

Top Companies Offering EV Charging Station Franchise in India

  • Tata Power EZ Charge
  • Statiq
  • Charge+Zone
  • EVRE
  • Ather Grid
  • BPCL & IOCL partnerships

Final Thoughts

Here’s the truth: EV charging in India is still in its “Nokia 3310 era.” Basic, clunky, but with massive potential ahead.

If you’re waiting for the “right time,” you might already be late. Early adopters will grab prime spots, tie-ups with big brands, and customer loyalty.

It’s a sunrise industry, and sunrise doesn’t wait for anyone.

FAQs on EV Charging Station Business in India

What is the minimum investment needed to start an EV charging station in India?

Around ₹5–6 lakh for a basic AC setup; ₹30+ lakh for DC fast charging hubs.

Do I need a special license to open an EV charging station?

Nope. Just DISCOM approval and local compliance.

How much profit can an EV charging station make per month?

₹50,000–₹3.5 lakh/month depending on scale and utilisation.

Can I run an EV charging station on solar power?

Yes, especially in tier-2/3 cities where land is cheaper. Hybrid solar setups cut costs big time.

Which company franchise is best for EV charging stations in India?

Tata Power EZ, Statiq, and Charge+Zone are currently leading the pack.


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