The Ministry of Power has issued new guidelines, establishing a rate of Rs 11 for fast charging during solar hours and Rs 13 for non-solar hours.
The Ministry of Power has updated its guidelines on the tariffs for electric vehicle (EV) charging, significantly decreasing the costs for all charge point operators. Previously, the rates for fast charging ranged between Rs18 and Rs24 per unit. Under the new framework, these have been revised to Rs11.00 per unit during solar hours and Rs13.00 per unit outside of those times.
Although these new guidelines are not compulsory for private entities in the EV charging industry, the Ministry has made its objectives clear by encouraging lower costs for EV charging. The revised advisory also sets the rates for slower charging methods; pricing solar-based charging at Rs 3.00 per unit and non-solar charging at Rs 4.00 per unit.
The intention behind these adjustments is to promote the use of solar energy among operators, thereby not only reducing operating costs but also lessening the burden on the national power grid, especially as EV adoption in India is anticipated to surge considerably within the next few years.
Furthermore, these guidelines support the use of solar energy by offering more favourable tariffs during daylight hours, between 9 a.m. and 4 p.m. The Ministry has mandated that electricity costs at charging stations should not surpass the Average Cost of Supply until March 2028, with reduced tariffs during solar hours to foster renewable energy use.
In the earlier months of 2024, there was a 16% increase in EV registrations over the previous year, with sales nearly doubling in 2023 and expected to rise by another 66% in 2024. By March of the current year, close to four million EVs had been sold, indicating the swift expansion of this market. With EVs poised to become a major consumer of power in India, the emphasis is shifting towards sustainable energy solutions.
Venugopal Rao Nellutla, an independent consultant at Saera Keto Motors, highlighted that India’s transition to solar-based EV charging could expedite EV adoption, decrease charging costs for users, and increase revenue for charge point operators.
The public EV charging infrastructure has expanded significantly, growing nearly ninefold from 1,800 stations in early 2022 to 16,347 by March 2024. Yet, many analysts suggest that this growth pace may still fall short of meeting future demands.
According to the guidelines, Distribution Licensees are to charge 0.7 times the Average Cost of Supply during solar hours and 1.3 times during non-solar hours. The government also aims to simplify the process of installing EV chargers by proposing that government or public bodies provide land at subsidized rates to private operators in return for a portion of revenue over a decade, calculated based on the electricity used at the charging stations.
Additionally, the guidelines call for the establishment of at least one public charging station within each 1 km x 1 km grid in urban areas, and along highways, stations should be placed every 20 km for regular EVs and every 100 km for long-range and heavy-duty vehicles.
Technical specifications for EV charging have also been standardized under the guidelines, including the adoption of the Open Charge Point Protocol to allow for real-time monitoring, reservation, and payment, thus enhancing the consistency and accessibility of the charging experience nationwide.
The Ministry has also addressed the availability of operational data for charging stations by implementing data-sharing protocols and establishing a national database to help users easily locate charging points through apps or online platforms.
Moreover, the Ministry has set strict timelines for electricity connections at new EV charging stations, with specific penalties for delays in provisioning these connections. In urban, municipal, and rural areas, these connections must be established within three days, seven days, and fifteen days, respectively.
An annual assessment of EV charging demand is to be carried out by the Appropriate Electricity Regulatory Commissioners of various municipalities, coordinated by the State Nodal Agency, to strategically position charging facilities.
Additionally, the Ministry of Housing and Urban Affairs has revised building codes and urban development guidelines to support evolving EV technologies and requirements, ensuring sufficient space is allocated for EV charging facilities in new developments.
For oil marketing companies, the government has issued directives to set up public EV charging stations and to prominently display this information to alert EV owners. Payment options for these stations have been advised to be flexible, incorporating both prepaid and postpaid methods, with special rate incentives during solar hours.
Finally, large public EV charging stations are required to offer additional customer amenities and ensure the provision of fast charging options, especially for long-range and heavy-duty vehicles. High-power chargers at these stations must include at least two chargers with a minimum capacity of 240 kW each, equipped with liquid-cooled cables for high-speed charging.
