July 2023 saw a 14% month-on-month surge in India, selling 1,15,756 EVs—a 45% YoY leap from July 2022. While India’s public charging network is on the rise, it remains a work in progress. It’s a matter of time before EV charging stations become as expected in apartment complexes as swimming pools and fitness centers.
Building owners and managers should seize this opportunity to claim early-bird government EV perks and gain a competitive edge.
Understanding EV Charging Infrastructure
EV charging presents three charging point options: AC Level 1, AC Level 2, and DC fast charging. AC Level 1 is a cost-effective, slow charger that can be plugged into any household outlet. AC Level 2 chargers are quicker than Level 1 and may necessitate a special connector. DC fast charging can swiftly charge an EV to 80% within 30 minutes. However, it demands a more complex installation process.
Cost Analysis of EV Charging Stations
When installing an EV charging station, its cost is equivalent to the charger plus about 25% for an installation fee. These upfront investments can be further offset through different pricing schemes.
Pricing Models for EV Charging
1. Fixed-Rate Pricing
This subscription-based model charges EV owners a fixed rate over a designated period of time.
Pros
- Simple setup
- Retains EV customers
Cons
- Missed opportunity for peak-hour premium fees
- Potential for EV owners to overstay, limiting availability for other users
2. Time-Based Pricing
Time-based pricing bills EV owners based on the duration of their charging sessions.
Pros
- Simple setup
- Suitable for chargers without smart metering
- Encourages timely unplugging to boost charging point availability
Cons
- Owners of EVs with lengthier charge times might avoid time-based charging services
3. KWh-Rate Pricing
KW-based pricing charges EV owners by kilowatt-hours used.
Pros
- Equitable pricing satisfies diverse EV owners
- Potential to capitalize on peak hours with premium charges
- Incentivize EV owners with off-peak discounts
Cons
- Property owners need to invest in smart metering systems to measure energy consumed during charging
Balancing cost recovery and affordability is important when establishing charging infrastructure, especially as the slow increase in new EV users appears to undermine the necessity of such investments. But opening charging stations to non-residents, allowing businesses to advertise in EV charging slots, and offering free charging periods to promote services may act as a solution.
Evaluating Financial Implications
1. Charging Models and Rates: Determine which price model meets the needs of the apartment complex and set competitive charging rates that attract users while ensuring profitability.
2. Usage Patterns: Estimate average daily/monthly usage. Consider charging times, frequency, and charging time slot preferences.
3. Government Incentives: Stay updated on government incentives and tax waivers.
Future Trends and Considerations
Emerging trends simplify EV charging in multi-dwelling units. V2G Technology can enhance grid stability and combat power outages across India as it allows EVs to store and redistribute energy during peak demand.
Smart energy management can permit apartment owners to optimize charger-facility balance, avoiding costly grid upgrades. Future Indian incentives for property owners might include refunds, grid-stability rewards, subsidies, and tax credits.
Empower Residents with EV Charging
While installing EV charging in apartment buildings comes with considerable financial considerations, demand for accessible charging points for residents continues to rise with growing EV sales. With careful study of usage patterns and cost recovery practices, revenue potential can be realized.
Alignment between investment and accessibility will support financial gain and sustainability in this emerging EV market.
