As India switches to cleaner transportation, public EV charging stations are super important, especially in smaller cities. These places are seeing more electric bikes, rickshaws, and small trucks for deliveries and getting around town. So, setting up a good network of public EV chargers isn’t just a way to make money, it’s something we need to do so more people can use EVs.
In this article, we’ll go over how to set up a public EV charging station in a smaller city, check out how the business side of things works, figure out if it’s worth the investment, and explain the government rules that affect this field.
Step-by-Step Setup Guide for a Public EV Charging Station
Site Selection
The first step is site selection. The most important factor for a public EV charging station in tier 2 and 3 cities is selecting the right location wherein vehicle traffic and dwell time is high, for example, at markets, transport hubs, apartment complex, petrol pump and parking lots. The site should be accessible, safe and reasonably shielded from the elements of the summer and the monsoon.
Power Supply and Electrical Infrastructure
It is necessary to have a dedicated electricity supply for the public EV charging station; you may need a three-phase connection and possibly a transformer depending on the capacity of the charging stations provided, especially for DC fast chargers. Backup solutions such as solar panels or battery energy storage systems (BESS) are increasingly being used to ensure reliability in areas with power cuts.
Charger Type Selection
Depending on use-case and budget, operators can install:
- AC Chargers (Slow/Moderate): 3.3 kW to 22 kW for two-wheelers and cars.
- DC Fast Chargers: 15 kW to 150 kW, suitable for commercial EVs, buses, and fleet operators.
- Bharat DC001 and AC001: Indian-standard chargers for cost-effective deployment.
Every public EV charging station must comply with Bharat EV specifications and be certified by the Central Electricity Authority (CEA).
Software and Monitoring Solution
Each Public EV Charging station shall incorporate a cloud-based solution for:
- Real time charger availability.
- Payment and billing (UPI, RFID, mobile app).
- Remote monitoring and diagnostics.
This enables a seamless user experience while improving station uptime and operational control.
Installation Timeline and Cost
The time to set up a public EV charging station takes about 4-6 weeks (including permits, civil infrastructure activities, and installation). The estimated capital cost is the following:
- AC Charger: ₹1,50,000 – 2,00,000
- DC Fast Charger: ₹7-30 lakhs (based on kW capacity)
Government incentives
The Central and State Governments have launched several government schemes to encourage public EV charging station development in under-served areas:
Central Govt. Incentives:
- FAME-II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles): financial incentives for public charger installation.
- Goods and Services Tax (GST): EV chargers and EV charging services are taxed at only 5% GST.
- Electricity Tariff: DISCOMs have offered EV operators special tariffs for their Public EV Charging Stations.
State Govt. Incentives:
- Maharashtra: Offers Capital subsidies of up to ₹5 lakh per site for each charging station
- Uttar Pradesh: Land will be provided for setting up public EV charging stations at concessional rates
- Tamil Nadu: 100% waiver of electricity duty for the first 5 years
- Gujarat & Delhi: Advertise a single-window clearance, and are also offering rental subsidy.
In the case of supported pricing rates through Multiple urban mobility programs such as ; PM-eBus Sewa; public EV charging station operators are eligible for additional incentives for all Tiers 2 & 3 cities.
Business Models for Tiers 2 & 3 Markets
Public EV charging station operators in Tiers 2 and 3 cities, experience different operational issues compared to the main metro networks. They will have to contend with lower footfall, power disruptions, amongst other factors. Subsequently it is important that public EV charging station providers carefully consider what business model to adopt:
1. CapEx Model (Owner-Operator): The operator owns and maintains the public EV charging station. The operator is responsible for profits according to utilization. Higher risk, higher reward. Operators like Tata Power EZ Charge have adopted this model in several states.
2. Franchise Model: Emerging operators like Statiq, Battery Smart, and ChargeZone provide tech support, branding, and hardware, while the local entrepreneur manages the station. Ideal for Tier 2 & 3 entrepreneurs.
3. Energy-as-a-Service (EaaS): Users (fleets or drivers) subscribe to charging services. The operator gets predictable revenue. This model is gaining popularity among delivery startups and e-rickshaw aggregators, with examples like SUN Mobility and Volttic supporting such models.
4. Public-Private Partnership (PPP): Government frameworks allow public land to be rented to private players for installing public EV charging stations using long-term contracts. NTPC and Indian Oil are prime examples of players involved in these PPPs.
ROI/Financial Viability
Public EV charging station investments are based on several variables:
Investment Requirements:
- AC station (1-2 ports): ₹1.5–2 lakh
- DC station (15–50 kW): ₹7–20 lakh
Revenue Streams:
- Charging fees (per unit)
- Monthly subscription packages
- Advertising at station site
- Co-located kiosks or retail
Utilization Metrics
A well-located public EV charging station serving 20–30 EVs per day can break even in 18–24 months. ROI improves greatly if site is situated in fleet zones or busy residential areas.
Example: 15 kW DC fast charger servicing 30 vehicles/day @₹7/unit, 5 kWh average consumption/vehicle =₹10,500/day in revenue. Monthly = ₹3.15 lakh. less than 1.5 years break-even.
Challenges for deployment in Tier 2 & Tier 3 Cities
At the same time as considerable upside potential, public EV charging station deployment in smaller cities has distinct challenges that they face:
1. Grid Backup: The grid is frequently down; that means backup systems are required for your equipment to work.
2. User Awareness: Users may not understand the charging cycle.
3. Theft/Vandalism: Especially in unattended public area.
4. Local Regulatory Approval Processes are long: (Navigating exemption and exemptions to procedures is quite complex at local government levels.).
Common solutions include:
- User Awareness Campaigns
- Solar back-up systems
- CCTV surveillance
- Appoint dedicated state nodal officers to concede approvals.
In conclusion, as the electric vehicle ecosystem in India continues to grow and expand in metro cities before it moves into Tier 2 and Tier 3 cities has now been more vital than ever to have an efficient, reliable and economic public ev charging station infrastructure in these parts of the country. Government incentives, smart business models, and local entrepreneurship can generate a wide range of possibilities.
Operators can build sustainable, profitable public EV charging station businesses that enable India’s clean mobility future by investing in the appropriate infrastructure, and knowing how to evolve and develop with local needs.