“Focus on your asset column not your income statement” says Robert T Kiyosaki in his book Rich Dad Poor Dad.
An asset is anything that puts money in your pocket. Assets can be: a business which doesn’t require your presence, real estate, stocks, bonds, notes and royalties from intellectual property.
In this new era, franchise businesses have emerged as a valuable asset. As the world shifts towards a green revolution in mobility with a focus on EVs, in this article let's explore the opportunity of EV Charging station franchises in India
Introduction
Petrol, diesel, and other gasoline prices in India have soared, with petrol reaching Rs 90 per liter nationwide and going up to Rs 110 per liter as of April 2024. This steep increase has driven people to seek sustainable, cost-effective alternatives, such as electric vehicles (EVs).
With the Government of India targeting 30% EV adoption by 2030, there is a growing interest in investing in the EV industry. Setting up an EV charging station is often the first option that comes to mind for many.
Now that you've seen the big picture, let's zoom in on the EV demand skyrocketing in India.
The growing demand for EVs in India
The demand for electric vehicles (EVs) in India is rapidly increasing due to their environmental benefits and cost-effectiveness.
The main reason being the rise in fuel prices and government incentives for EV adoption are driving this growth.
According to a report by BloombergNEF, EV sales in India are expected to increase significantly in the coming years. This surge in demand is also supported by the growing availability of EV Charging stations.
Seeing the surge in EVs, you must be wondering about the cash flow from charging them, right?
Profitability of opening an EV charging station franchise
Let us see how an EV Charging station franchise in India creates profit when you invest in it.
Opening an EV charging station franchise can be highly profitable due to several factors:
- Rising Demand: With the increasing adoption of electric vehicles, the demand for charging stations is on the rise.
- Government Incentives: Government incentives and subsidies for EV infrastructure can make the business more profitable.
- Low Operating Costs: Compared to traditional fuel stations, EV charging stations have lower operating costs.
- Sustainable Business: EV charging stations contribute to sustainability, attracting environmentally conscious customers.
- Potential for Growth: As the EV market expands, there is ample opportunity for the business to grow and expand its network.
Understanding EV Charging Stations
Understanding EV charging stations is necessary for the growing EV market in India, one must understand EV charging stations for the growing EV market in India. Various schemes and incentives from the Indian government promote EV adoption, emphasizing the importance of a charging infrastructure to support the transition to electric mobility.
Ensuring the reliability and efficiency of these crucial services is where Pulse Energy’s innovative solutions come into play, offering remote monitoring servers and platforms tailored for the EV charging infrastructure
Definition and utility of an EV charging station
An EV charging station is a facility equipped with electric chargers to recharge electric vehicles (EVs), especially on roads. It provides the necessary infrastructure for EV owners to charge their vehicles.
It is mostly used by EV drivers on the road when the EV vehicles have low battery indications, thus the EV Charging stations acting as a fuel station for EV Vehicles.
EV charging stations play a crucial role in supporting the adoption of electric vehicles by providing a convenient and accessible means to recharge, promoting sustainable transportation. It helps in the increase of EV Vehicle usage by the people, whose major concerns are the availability of charging stations on road.
Different types of EV charging stations and their functionalities
The above table gives a brief understanding of the availability of different types of EV Charging stations in India and how it can typically help in setting up a franchise to run a station.
Got the basics down? Now, let's discuss what you need to bring to the table
Eligibility Requirements for EV Charging Station Franchises
Eligibility requirements for EV charging station franchises are super important to ensure that franchisees meet the necessary standards and qualifications. This helps maintain quality, reliability, and compliance with regulations, ultimately benefiting both the franchisee and the overall EV charging infrastructure.
Selecting high-quality, reliable charging equipment is pivotal. Pulse Energy's solutions are built with the latest technology, offering durability and high performance that meets the needs of today's EV market.
Basic Requirements for Starting an EV Charging Station:
- Location: Identify a suitable location with easy access for EV drivers and adequate space for charging equipment and parking. It could be a busy street, shopping malls, offices, etc.
- Power Supply: Ensure access to a reliable power supply with sufficient capacity to support the charging stations.
- Charging Equipment: Purchase and install charging equipment compatible with the types of EVs commonly used in the area.
- Permits and Regulations: Obtain necessary permits and comply with regulations related to EV charging stations.
Initial investment cost estimation
The initial Investment cost majorly include equipment setup, installation, networks, permissions and several more. The table below gives a brief understanding about the same.
Note: The prices mentioned above are according to the reports of April 2024 and it may vary depending on the operational costs, location and many other factors.
Ready to take the leap? Here's how you make it official.
Also read about the Cost and Setup of EV Charging station in India
Steps to Apply for an EV Charging Station Franchise
To set up an EV Charging station Franchise in India or to run an electric vehicle charging station dealership, there are certain steps to apply which becomes important to know before investing in the same.
Let's have a brief look into the steps to apply for an EV Charging station Franchise.
License-free setup but must meet technical standards
Setting up an EV charging station franchise in India doesn't require a license but must meet technical standards set by the government to ensure safety and interoperability with EVs.
According to e-Amrit, The Public Charging Station should meet all the performance and standards requirement released notification by government of India titled ‘Charging Infrastructure for Electric Vehicles – Guidelines and Standards and setting up of Public Charging Stations (PCS) has been de-licensed activity and any individual/entity is free to set up PCS.
Government policy on EV charging stations
There are a few policies on EV Charging stations by the Government of India to promote the usage of Electric Vehicles usage by the people. The table below comprises of the four major government policies.
Key pointers from the Ministry of Power and Niti Aayog
NITI Aayog aims to promote collaboration between the central and state governments in shaping economic policies to achieve sustainable development goals.
These key points mentioned below say about the major goals and vision of Niti Ayog and the Ministry of Power to install EV Charging stations across India and build EV Charging station dealerships among people.
- The Ministry of Power aims to install EV charging stations every 25 km on highways and roads.
- Niti Aayog suggests promoting EVs for shared mobility and public transport to reduce pollution.
- Both entities emphasize the need for robust infrastructure and policy support to boost EV adoption.
- The focus is on creating an ecosystem that promotes electric mobility and reduces dependence on fossil fuels.
Checking the EV charging policy and selecting the right partner
It becomes very important to focus on checking the EV Charging policies as the Government also de-licensed the EV Charging station setup. Selecting the right partner also plays a role in the sustainability of your franchise in the long run.
Charging policies for EVs typically include:
- Tariff Structure: Defines the cost of charging, which can be flat-rate, time-based, or kWh-based.
- Charging Station Accessibility: Ensures stations are easily accessible to the public and EV owners.
- Interoperability: Ensures compatibility with various EV models and charging standards.
- Payment Methods: Specifies accepted payment modes, such as credit/debit cards, mobile wallets, or prepaid cards.
- Parking Regulations: Governs parking duration and penalties for non-EV vehicles parked at charging spots.
- Reservation Systems: Provides options for reserving charging slots to avoid wait times.
- Safety Standards: Ensures compliance with safety regulations for charging station installations.
- Environmental Impact: Encourages the use of renewable energy sources for charging.
Selecting the right partner involves evaluating their experience, reliability, and network coverage. Look for partners who comply with government regulations and offer competitive pricing. A strong partnership will help ensure the success and sustainability of your EV charging station franchise.
Infrastructure Requirements for Setting Up EV Charging Stations
Setting up EV charging stations requires reliable power supply, strategic location selection, compatible charging equipment, internet connectivity for monitoring, and implementation of safety measures for user protection. These infrastructure requirements are a must to take care of, before starting the EV Charging station.
Essential components and security measures
- Power Supply: Ensure access to a reliable power source with adequate capacity for charging stations.
- Location: Choose a strategic location with high visibility and easy access for EV owners.
- Charging Equipment: Install compatible and reliable charging equipment suitable for different types of EVs.
- Connectivity: Ensure internet connectivity for remote monitoring, management, and user access.
- Safety Measures: Implement safety features such as circuit protection and proper signage for safe usage.
Safety and efficiency equipment
It is very important to take care of the safety precautions and set up efficient equipment.
These points below will help you have an idea about the safety measures.
- Surge Protection: Install surge protectors to safeguard charging equipment from power surges.
- Ground Fault Protection: Use ground fault circuit interrupters to prevent electric shock hazards.
- Overcurrent Protection: Implement overcurrent protection devices to prevent overheating and fires.
- Energy Management Systems: Use EMS to optimize energy usage and reduce operational costs.
- Smart Charging Features: Incorporate smart charging capabilities for efficient energy distribution and billing.
With the foundation set, picking the right franchise partner is your next power move.
Choosing the Right EV Charging Station Franchise
It is quite necessary to choose the right EV Charging station franchise in India to focus on long term returns, profits and sustainable growth.
These points are something that you need to understand to have a better approach in choosing the right EV Charging station
- Research Potential Franchisors: Investigate the reputation, experience, and track record of potential franchisors.
- Evaluate Franchise Terms: Review the franchise agreement, including fees, support, and territory rights.
- Consider Brand Reputation: Choose a franchisor with a strong brand presence and positive customer perception. At the end of the day, you will have to run a profitable business.
- Assess Training and Support: Ensure the franchisor offers comprehensive training and ongoing support.
- Analyze Cost and ROI: Evaluate the total investment required and potential return on investment.
Top companies offering EV Charging Station franchises
The top companies in India which offer EV Charging station franchises are as follows-
- Tata Power
- Offers EV charging infrastructure solutions.
- Significantly contributes to expanding the EV charging network.
- ChargePoint
- Global EV charging network, expanding into India.
- Introduces advanced charging technology to the market.
- EV Motors India
- Provides EV charging solutions and services.
- Drives innovation and accessibility in EV charging.
- Fortum India
- Offers EV charging infrastructure and services.
- Enhances EV adoption with reliable charging solutions.
- Delta Electronics
- Provides EV charging solutions and equipment.
- Improves charging infrastructure with cutting-edge technology.
TATA EV Application Process and highlights of Charge+Zone
Tata EV is one of the top EV Charging station franchise providing companies in India. It follows an application process, which is as follows-
TATA EV Application Process:
- Registration: Sign up on the TATA Power website or app.
- Verification: Verify your email and mobile number.
- KYC Submission: Upload KYC documents for verification.
- Charger Selection: Choose the type of charger you need.
- Payment: Pay the installation fee online.
- Installation: Schedule and install the charger at your location.
Highlights of Charge+Zone:
- Compact Design: Space-saving and easy to install.
- Robust Build: Durable and weather-resistant.
- User-Friendly: Intuitive interface for easy operation.
- Safety Features: Overcurrent protection and safety lock.
- Remote Monitoring: Monitor and manage charging remotely.
Cool, so you've chosen your path; let's see how the government sweetens the deal.
Government Incentives and Policies
As we already discussed the Government policies and Incentives, lets see what the Interim Budget 2024 and the FAME India Scheme II grants and goals talk about.
Latest update on Interim Budget 2024-25 proposals
The interim budget is a temporary financial plan presented by the government before elections, outlining estimated revenue, expenditure, and policies until a new government presents a full budget.
Let's have a look at what the Interim budget 2024 says about the EV Market!
- Reduction in GST: The interim budget proposes to reduce the GST rate on electric vehicles from 12% to 5%, making EVs more affordable for consumers.
- Incentives for EV Manufacturers: The budget includes incentives for manufacturers to produce electric vehicles and components, encouraging growth in the EV industry.
- Charging Infrastructure: Allocation of funds for the development of EV charging infrastructure, aiming to improve accessibility and convenience for EV owners.
- Research and Development: Increased focus on research and development in the electric vehicle sector to promote innovation and technological advancement.
- Boost for Electric Two-Wheelers: Special incentives and schemes to promote the adoption of electric two-wheelers, targeting a wider market segment.
- Green Mobility Initiatives: Emphasis on promoting green mobility solutions to reduce carbon emissions and combat climate change.
FAME India Scheme Phase II grants and goals
FAME India promotes electric and hybrid vehicle adoption through incentives for manufacturers and buyers, alongside developing EV charging infrastructure to support sustainable mobility.
- Grants: FAME India Phase II offers incentives worth INR 10,000 crore over three years (2019-2022) to promote electric mobility and reduce vehicular emissions.
- Goals: The scheme aims to support the deployment of 10 lakh electric two-wheelers, five lakh electric three-wheelers, 55,000 electric four-wheelers, and 7,000 electric buses. It also aims to establish 2,700 charging stations across India.
Charged up with all the info? Let's drive home the key takeaways and why now's the prime time to start your franchise.
Navigating these incentives requires a knowledgeable partner. Pulse Energy stays abreast of current policies and offers guidance to ensure your franchise maximizes these benefits.
Conclusion
Investing in India's EV industry, particularly in charging infrastructure, offers immense potential. With favorable policies and a growing market, now is the time to consider entering this sector for long-term sustainability and profitability.
Growth Outlook for India's EV Industry:
With supportive government policies, increasing consumer awareness, and advancements in technology, India's EV industry is poised for significant growth. The push for cleaner mobility solutions and the shift towards electric vehicles indicate a promising future for the sector.
Encouragement to Start an EV Charging Station Franchise Now:
Starting an EV charging station franchise now presents a lucrative opportunity. With the rising demand for EVs and the government's focus on expanding charging infrastructure, investing in this sector can lead to long-term success and contribute to India's sustainable future.
