Chapter 10: Electric Vehicle Charging Economics, Policies, and Incentives
Abstract : EV charging economics, policies, and incentives focus on boosting adoption through subsidies (FAME II, state-level), tax breaks (GST cuts on EVs), and infrastructure support (capital subsidies for stations, land, reduced electricity rates) . Policies aim for grid integration, standardized fast charging, and private investment, balancing upfront costs with long-term viability, though challenges like inverted GST on batteries remain, impacting swapping services. Key Economic Factors & Challenges High Upfront Costs: Developing charging infrastructure (hardware, grid connection) requires significant investment. GST Inverted Duty : Higher GST (18%) on batteries and charging services compared to EVs (5%) creates financial hurdles for battery swapping and new setups. Grid Integration: Seamlessly connecting many chargers to the grid is a major technical and financial challenge. Private Investment: Viability depends heavily on attra...