EV Charging Stations: A New Revenue Opportunity for Management Committee’s

EV Charging Revenue opportunities are growing faster as global EV sales reach close to 5 million units in 2021. Business owners might find it interesting that a single EV charging station can increase annual spending at nearby establishments. The numbers show a 1.4% boost (₹126,590) in 2019 and 0.8% (₹34,603) from January 2021 to June 2023.

Properties with EV charging stations now have substantially more value than those without. This becomes even more important when you have more renters switching to electric vehicles. Management committees can generate passive income through this promising EV Charging Business model. The opportunity becomes more appealing with $2.6 billion available to more people through incentives and government programs. Smart property managers now see this potential, especially when higher-income early adopters look for properties with available charging infrastructure.

Why EV Charging is a Smart Investment for Management Committees

The Indian EV market is going through amazing changes that create profitable EV Charging Business Opportunity options for housing society management committees.

Research shows that 80-90% of EV owners would rather charge their vehicles at home. This is a chance for resident welfare associations (RWAs) and housing societies to set up convenient EV charging stations and create additional EV Charging Revenue streams.

Management committees can help bridge a big gap in charging infrastructure. India has only 25,202 public charging stations. Each 40 EVs need one charger—which means over 400,000 charging stations must be added yearly. By 2030, India will just need 1.32 million charging points.

The government has rolled out several programs that make this EV Charging Business Opportunity more appealing:

• The FAME-II scheme set aside ₹1,000 crore specifically for charging infrastructure development
• Capital subsidies worth ₹800 crore were approved to build 7,432 public EV charging stations
• The PM E-DRIVE Scheme gives ₹2,000 crore to install EV Public Charging Stations
• GST on EV chargers dropped from 18% to just 5%

The Ministry of Power’s 2024 guidelines provide clear standards to create connected and interoperable charging networks. These guidelines let charging stations operate 24/7 and speed up electricity connections up to 150 kW.

Setting up residential EV charging stations goes beyond just earning EV Charging Revenue—it prepares your society for the future. India aims for 30% EV penetration for private cars, 70% for commercial cars, and 80% for two and three-wheelers by 2030. This means the need for reliable charging solutions will keep growing.

This investment fits well with India’s bigger climate goals to cut emissions intensity by 45% by 2030. Management committees that build charging infrastructure now are leading this green revolution while creating a sustainable EV Charging Revenue Model for the long run.

How EV Charging Stations Generate Revenue

Housing societies all over India are finding that EV Charging Revenue goes way beyond the reach and influence of just selling electricity. The right charging infrastructure creates multiple income streams that can benefit housing societies by a lot.

Take action now: These EV Charging Revenue Models can help turn your society’s charging stations from a basic amenity into a money-making venture.

The simplest way to generate EV Charging Revenue comes from direct usage fees. You can set up:

• A flat monthly fee per vehicle (like ₹500-1000) added to maintenance charges
• Pay-per-use billing based on actual electricity consumption (per kWh)
• Time-based charging that encourages turnover and maximizes usage

The real money-making potential lies beyond simple charging fees. Chargers boost property values and create premium rental opportunities. Properties with EV-friendly amenities draw more tenants and buyers. This affects rental yields and property prices positively. Blink Charging suggests you can “boost ROI by generating charging revenue or providing complimentary charging to residents at a higher rental premium”.

The EV Charging Business has evolved. Several companies now offer no-CapEx solutions to RWAs through revenue-sharing models. ElectreeFi, Charge+Zone, and Fortum work with housing societies. They handle installation costs in exchange for a share of future EV Charging Revenue.

Societies can earn extra money through advertising on digital displays on chargers. Local businesses or bigger brands can promote on these screens. This creates income beyond electricity sales. Chargers also bring more foot traffic to society’s shops or cafes.

Real-life success stories prove this EV Charging Business Opportunity. Mumbai’s Lodha Group installed charging points in all their projects – both new and old. They started by offering free charging to residents for six months. A Bengaluru RWA’s story shows similar success. They installed five chargers in their 250-flat society and partnered with BESCOM for power connection and billing.

Yes, it is possible to recover installation costs quickly with government incentives. This makes the EV Charging Business Opportunity good for both the environment and your society’s finances.

Incentives and Long-Term Value for Housing Societies

EV charging infrastructure creates new EV Charging Revenue and adds exceptional value to housing societies through government support and property appreciation.

Take action now: Get available incentives to cut installation costs and maximize your society’s revenue potential from EV charging stations.

The Indian government supports EV Charging Business growth with substantial financial backing:

• FAME-II scheme has allocated ₹1,000 Crore for charging infrastructure
• Oil Marketing Companies received ₹800 crores to set up 7,432 public EV charging stations
• PM E-DRIVE Scheme provides ₹2,000 crore to install public charging stations
• Societies can get up to 80% subsidy on infrastructure costs, with full funding possible in special cases
• GST on EV chargers dropped from 18% to 5%

Scheme/Benefit	Details
FAME-II Scheme	₹1,000 Crore allocated for charging infrastructure
Oil Marketing Companies	₹800 Crores received to set up 7,432 public charging stations
PM E-DRIVE Scheme	₹2,000 Crore provided to install public charging stations
Subsidy for Housing Societies	Up to 80% subsidy on infrastructure costs; full funding possible in special cases
GST Reduction on EV Chargers	Reduced from 18% to 5%

Property values go up by a lot with EV charging infrastructure. Homes with EV chargers see values rise up to 7%, while commercial properties gain up to 15%. Commercial properties with EV chargers can earn up to ₹42.19 per kWh, which means ₹126,570-₹253,141 extra monthly income from each charging station using the right EV Charging Revenue Model.

Housing societies have started to cash in on these EV Charging Business Opportunity options. Adani Electricity now rolls out 8,500 shared EV chargers in 4,000 Mumbai housing societies. Tata Power has put up 150 EV charging points in Mumbai’s residential societies and plans to add more.

The benefits go beyond money. Societies with EV chargers see 25% happier tenants and 10% lower turnover. This saves about ₹2,531,413 each year in tenant replacement costs. The government made it clear that societies can’t stop residents from installing charging points, which makes this feature necessary.

EV sales will reach 14 million units in 2024 and make up nearly 60% of new car sales worldwide by 2030. Early investment in charging infrastructure puts your society in a leading position for this transformation. This creates a lasting EV Charging Revenue Model for the future.

Conclusion: Powering your society’s financial future through EV charging

EV charging infrastructure represents an unprecedented EV Charging Business Opportunity for Indian RWAs, which will generate many EV Charging Revenue sources and will also enhance the value of the property by as much as 7%. The electric vehicle market is forecasted to grow from USD 32.1 billion in 2023 and reach USD 150.2 billion by 2032. As the market evolves, societies can adopt suitable EV Charging Revenue Models including subscriptions, pay-per-use, and strategic partnerships across its members. Government schemes like FAME-II and capital subsidies have made investing less cumbersome than ever. Early adopters will be first-movers and as result, they will create value in their societies by improving tenant satisfaction by at least 25%, and contributing to the green future of India.

Frequently Asked Questions

Q1. What are the financial benefits to management committees if they install EV charging stations? 

Management committees can create direct revenue from EV Charging by charging fees for the use of electricity, or they may gain value to the property as an EV charging station may allow a higher sale price for a property. Management committees can also explore the opportunity to advertise through EV charging stations. In addition, they may get premium tenants and build the society’s environmental reputation.

Q2. How do housing societies charge for EV charging stations?

There are various EV Charging Revenue Models for housing societies, which may be flat monthly fees charged through maintenance, usage based billing related to electricity usage, charging based on duration, or possible revenue sharing agreements with charging infrastructure providers.

Q3. Are there any rebates from government subsidies for charging stations? 

Yes, there are various subsidies provided by the Indian government, for example, under the FAME-II scheme there are EV Charging subsidies, grants for operating public charging stations, and select reduced GST rates on the cost of EV chargers. These rebates can significantly reduce the installation cost, and improve the overall return on EV Charging Business, which may include EV chargers installed in housing societies.

Q4. Do EV charging stations contribute to increasing value to the property? 

While studies have shown that residential EV chargers can add value to a house of approximately 7%, residential EV chargers may increase the value of commercial property by 15%. At the end of the day, EV charging infrastructure is appealing as a long-term EV Charging Business Opportunity to housing societies.