Worldwide the electric vehicle industry is gaining popularity. In India, growth is so far slower due to the lack of electric vehicle charging stations. But thanks to the prompt government support and continuous guidelines about tax, incentives and benefits on electric vehicles, the growth has taken a new revolutionary face. The government has made a 360-degree effort to enhance public charging infrastructure, which involves both public and private agencies. Many private companies have come forward for growth support to develop a convenient charging network grid. So as you can see electric vehicle charging station business in India is taking a new turn and growing at a really good speed. Now, should you lease or buy EV charging stations for your business?
There is a lot of opportunity for business and property owners who are looking forward to invest in installing electric vehicle charging stations. These stations produce revenue for businesses and increase the popularity of electric vehicles, facilitating ethical and financial incentives for businesses. If a prospective owner wants to install a charging station, then they are quite determined to find a way to implement it. For businesses, the most common question is whether to lease an EV charging station or buy an EV charging station.
Here are the factors to consider while making a choice about lease or buying an EV charging station for business.
Upfront cost and ease of use
The exact cost of buying or leasing a charging station depends on the providers. A simple stand rule is: Leasing is simple and cheap upfront, while buying can prove cost-effective in the long run, but it is costlier. Which provider you want to choose and how many stations you are hoping to install will determine the exact figure. Some EV charging station providers advocate on giving a monthly lease cost to the tenants or owners of the property. At the same time, this is just an option. Generally, the option should outweigh financially by the tax incentives offered on the purchase units.
Leasing an electric vehicle charging station has its own merits and demerits. The downside is that you have less control over the unit. Under control, there are things which you can’t do with the questioning unit. Sometimes you have to rely on the provider for the maintenance crew, and there can be a possibility that the crew is not reliable. On the other side, many unit providers provide protections for the units; thus, you won’t be liable for maintenance. If you have invested in the business, then the EV charging infrastructure will try its best to keep you happy and satisfied.
Recently the ministry of power has revised the guidelines and standards on Jan 14, 2022, and here are the following amendments:
- To provide an affordable tariff chargeable by public EV charging station operators and owners and electric vehicle owners.
- Enable electric vehicle owners to charge EVs at their residences and offices using existing electric connections
- For land, a revenue-sharing model has been suggested to make a public charging station financially stable from an operational perspective.
- Timeline decided for providing connectivity to the public charging station to ensure a faster rollout of public EV charging
- Details of technical requirements for public charging stations is elaborated.
Buying an EV charging station
Here is the cost list if a company decides to buy an EV charging station.
The installation cost of Electric vehicle charging station
This includes the cost of connecting to electrical power from either an electrical panel for a slow charger or upgrading power capacity through a larger utility transformer. The infrastructure is an ultimate requirement that attaches to the needs of the charging station.
This includes a charging station and all the required equipment. The cost is paid up-front.
It includes networking services that allow drivers to interact remotely with charging stations and to check availability and everything from their location. The software will enable owners to gather valuable insights and meaningful data to understand the volume and behaviours of the customer base and identify future needs. These costs are paid as up-front fee in the form of the annual fee.
Quality check is crucial. All equipment used by the public needs timely maintenance and checks to overcome critical issues. Premium providers work on offering maintenance services with experienced partners. The cost and structure of payment is based on the circumstances.
Conclusion – Choice is yours
Those who are planning to install an EV charging station on their property have many queries in their mind. Leasing or buying EV charging stations depends on the buyer’s priorities. What’s more important is to check long-term cost, short-term affordability, control and simplicity. Many tax incentives require you to meet certain criteria and processes. It is tedious and complicated at the time, but in the long run, the EV industry and EV infrastructure business are booming. If your priority is short-term affordability and simplicity, then leasing is the best option. However, if you want long-term gain, sustainability and control over the business, buying an EV charging station is the wisest choice.