How to be a Charge Point Operator in India

India’s electric vehicle (EV) revolution is accelerating with EV sales reaching approximately 1.94 million units in 2024 according to the Vahan portal of the Ministry of Road Transport and Highways (MoRTH), a 27% year-on-year increase, driven largely by the surge in electric two-wheeler adoption, which comprised 59% of total EV sales.

Growing EV adoption presents a golden opportunity for entrepreneurs: becoming an EV charge point operator (CPO). As a CPO, you can play a pivotal role in shaping the nation's sustainable mobility landscape while tapping into a burgeoning market. This guide will walk you through the essential steps to establish yourself as a successful EV charge point operator in India.

How can I get a charging station license in India?

Setting up an EV charging station in India doesn't require a specific license, as per the Ministry of Power's guidelines. However, you must adhere to certain regulations and obtain necessary approvals:

Electrical Safety Compliance: Ensure your equipment meets the Bureau of Indian Standards (BIS) certifications.
Local Authority Permissions: Secure approvals from local authorities such as Urban Local Bodies (ULBs) or Urban Development Authorities (UDAs) for land use, zoning, and building permits. State Nodal Agencies (SNAs) help coordinate these processes, while DISCOMs assess power load and provide grid connections. Applicants need to submit site plans, ownership or lease documents, and equipment specs. All setups must meet BIS safety norms, with environmental clearance required in some cases.

Detailed guidance on these procedures can be found in government resources such as the Ministry of Power’s guidelines, the Model Building Bye-Laws 2016, and the NITI Aayog EV handbook.
State Electricity Board Approvals: Coordinate with your state's electricity board for grid connections and related permissions. This involves submitting an application (often online) with documents like site layout, load requirements, and equipment specs. The board inspects the site, provides a cost estimate, and, upon payment, installs the connection. Compliance with BIS safety standards is required before the station goes live.
While the activity is delicensed, compliance with these regulations is crucial for smooth operations.

Where can I set up my EV charging station?

Strategic location selection is key to maximizing the utilization of your charging stations. Consider the following options:

Residential Welfare Associations (RWAs): Install chargers in apartment complexes to cater to residents.
Public Spaces: Partner with malls, parking lots, and commercial complexes to provide accessible charging points.
Real Estate Collaborations: Work with builders and developers to integrate charging infrastructure in new projects.
Highways and Transit Points: Set up fast-charging stations along highways and major transit routes to serve long-distance travelers.

Choosing high-traffic and easily accessible locations such as existing petrol pumps or land owned by Charge Point Operators (CPOs) will enhance visibility, convenience, and station utilization.

What equipment and software do I need?

Investing in the right technology ensures efficient and user-friendly operations. Here's what you'll need:

Chargers: Select chargers compatible with various EV models, considering factors like charging speed and connector types. For two-wheelers and three-wheelers, chargers typically range from 1.5 kW to 3.3 kW using standard AC connectors. Four-wheelers often require faster chargers—AC chargers range from 7.2 kW to 22 kW, while DC fast chargers start at 30 kW and go up to 60 kW or more. In India, popular connector types include Bharat AC-001 and DC-001 for legacy systems, and CCS2 and CHAdeMO for newer four-wheelers, with CCS2 emerging as the dominant standard.
Open Charge Point Protocol (OCPP): Adopt OCPP-compliant chargers to enable communication between the charging station and the management system. You can assess your EV charger’s performance, interoperability (OCPP profiles), and security with ease here.
Open Charge Point Interface (OCPI): Implement OCPI to facilitate interoperability between different charging networks, allowing users to access multiple networks seamlessly. The Open Charge Point Interface (OCPI) is primarily implemented by Charge Point Operators (CPOs) and e-Mobility Service Providers (eMSPs) to enable interoperability between different EV charging networks. While vehicle OEMs do not directly implement OCPI, they may integrate eMSP services into their systems to enhance the user experience.
Charging Management Software: Utilize software platforms to monitor station performance, manage user access, handle payments, and gather usage data. Charging Management Software (CMS) is essential for Charge Point Operators (CPOs) aiming to maximize revenue and streamline operations. These platforms offer real-time monitoring, user access control, dynamic pricing, and detailed analytics to optimize charger performance and profitability. Leading CMS solutions in India, such as Kazam, provide features like remote diagnostics, flexible tariff management, and seamless payment integrations.

Embracing these technologies not only enhances user experience but also streamlines your operations.

How can I ensure the success of my EV charging business?

Monitoring key performance indicators (KPIs) is vital to assess and improve your charging station's performance:

Uptime: Measuring charger availability is key to ensuring minimal downtime and reliability. Realistically, a good uptime target is around 98-99%, meaning chargers should be online and functional for most of the time. When issues arise, such as power loss, emergency stops, or electrical faults, having a robust Charging Management Software (CMS) is crucial. A good CMS provides real-time alerts and remote diagnostics to quickly resolve problems.
Utilization Rate: Track how often your chargers are in use. High utilization indicates strong demand and effective location choice.
Energy Dispensed: Monitoring electricity delivered to users ensures accurate revenue and efficient energy management. CMS platforms also help CPOs track power usage in real time, preventing them from exceeding sanctioned load limits set by utilities, avoiding penalties, and ensuring compliance.
Customer Satisfaction: Gather feedback to identify areas for improvement and enhance user experience.

Regularly analyzing these KPIs will guide your operational strategies and drive continuous improvement.

How can I plan financially for my EV charging station?

Initial Investment: Setting up a charging station can cost between ₹1-2 crores, covering equipment, installation, and infrastructure.

Here's a breakdown of the estimated costs:

Charging Equipment:

AC Chargers: ₹1-3 lakhs per unit.
DC Fast Chargers: ₹25-50 lakhs per unit.

Installation Costs:

Civil work: ₹5-10 lakhs for site preparation, including electrical infrastructure, signage, and foundations.
Electrical Work: ₹5-15 lakhs depending on grid connection upgrades, transformers, and other electrical components.

Infrastructure Development:

Land: If land is leased, costs can range from ₹10-20 lakhs annually based on location. If owned, no lease cost is incurred.
Grid Connection: ₹5-10 lakhs for electricity connection, depending on load and distance.

For a small-scale setup with AC chargers and minimal upgrades, costs could be on the lower end (around ₹1 Crore). For large-scale setups with multiple DC fast chargers, grid upgrades, and other advanced features, the cost can easily reach ₹2 Crore or more.

Operational Costs: Account for electricity, maintenance, software subscriptions, and staff salaries.
Revenue Streams: Generate income through charging fees, subscriptions, advertising, and partnerships.
Financial Tools: Utilize tools like the Financial Analysis of Charging Station (FACt) to assess profitability and make informed decisions. The Financial Analysis of Charging Station (FACt) is an Excel-based tool developed by WRI India to help stakeholders assess the financial viability and profitability of EV charging stations by analyzing various operational and financial parameters.

A well-structured financial plan ensures long-term viability and growth.

How can I stay ahead in the EV charging industry?

Continuous learning and adaptation are key to thriving in the evolving EV landscape:

Stay Updated: Keep abreast of government policies, technological advancements, and market trends to maximize your investment.
Network: Engage with industry associations, attend conferences, and collaborate with other stakeholders.
Customer Engagement: Foster strong user relationships through loyalty programs, responsive support, and community initiatives.

Proactive engagement and adaptability will position your business for sustained success.

Ready to embark on your journey as an EV charge point operator?

Reach out to us at business@kazam.in or explore our solution for CPO here

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