Why Is Public EV Charging So Expensive?

Owning an electric vehicle in India is as much a going green decision as saving money while using it.

Since EVs have higher upfront costs when compared with a similar vehicle that has an internal combustion engine, the justification for saving money after using it is only if you will use it for as much or preferably more than your ICE vehicle.

And, then too when you charge it at home.

As we know, public EV charging in India costs more per unit than home charging and often as much as 3X higher or more which then negates the whole logic and math of going green with an EV.

The cost of convenience for an AC or DC fast charge to top up the vehicle quickly while making an out-of-city ride is perhaps justified, but neither practical nor economical as an everyday habit.

Add the math and then you realise that a conventional fuel vehicle was more economical be it in the city or on highways.

So, why is public charging in India pricier than at-home charging and how is it globally?

Electricity Tariffs and Fixed Costs

One of the biggest contributors to that pricey bill is the electricity tariff structure.

India does not have standard slab rates for electricity supplied to public or domestic EV chargers.

Public charging stations are often billed under commercial or industrial rates and are far costlier than residential tariffs.

Some states do offer subsidies but that is usually an exception.

While home users typically pay between ₹5 and ₹8 per unit depending on the state, commercial rates range from ₹10 to ₹15 per unit.

In addition, many utilities apply demand charges or peak-load pricing for commercial consumers—fees based on the maximum power drawn during the billing cycle—adding to the costs of public charging operators.

Also, public charging operators are subject to fixed monthly charges in addition to the per-unit cost.

Such fixed costs are applied even if usage is low and include charges for the connected load, transformer rent if applicable, high-speed internet, regular maintenance and metering infrastructure.

These fixed fees add a minimum per unit cost that operators must recover for the service to be viable.

Infrastructure Costs

Setting up public chargers involves substantial costs.

Installing a public charger requires investment in the AC and DC fast chargers, land, transformers, grid upgrades, civil works, stable high-speed internet, software management and often batteries for backup power.

These costs are then passed on to customers to ensure business viability and return on investment to ensure profitability.

In contrast, home chargers are relatively simple and less expensive, often come bundled with the EV and include free installation.

Goods and Services Tax

GST also plays a role. While EVs attract a lower GST at 5%, public charging services are taxed at 18%, which adds to the customer’s bill.

Additionally, utilisation rates of public chargers are currently low in India due to the limited number of EVs. With lower footfall, operators charge more per session to cover operational and fixed costs like connected load charges, internet, maintenance, software, staff, and rent/land costs.

In contrast, home charging benefits from lower electricity slab rates and no service charges or extra fixed costs.

Compared with other countries, India’s public charging rates are still relatively lower in absolute terms.

In the US, public fast charging can cost $0.30–$0.50 per kWh or ₹25–₹42, while home charging costs around $0.13 or ₹11.

In Europe, fast public charging can go up to €0.40-€0.89/kWh or ₹65-₹82, especially in places like Germany or the UK, while home charging averages around €0.30/kWh or ₹28.

In countries like Norway or the Netherlands, government subsidies and higher EV adoption help reduce this gap.

However, in percentage terms, the gap between home and public charging costs is often wider in India.

In some Indian cities, public fast chargers cost ₹20–₹25 per kWh, more than 3X the home charging rate. Also, DC fast charging is pricier than AC fast charging but is more convenient for that quick top-up at the public charger.

Innovation in Public Charging

Recently, Chinese EV giant BYD announced its ‘Super E-Platform,’ featuring ultra-fast charging technology capable of delivering 400 km of range in just 5 minutes.

This charging system operates at 1,000 kW or one megawatt, making it twice as fast as Tesla’s Superchargers.

While BYD has announced plans for over 4,000 of these ultra-fast charging stations across China, details about the per-unit charging cost have not been announced yet.

Charging as Fast as Refueling. 400 km in Just 5 Minutes.

Introducing BYD Super e-Platform. The world’s first mass-produced full-domain 1,000V high-voltage architecture.

⚡ Megawatt Flash Charging delivers 2 km of range per second
⚡ 1,000 kW (1 MW) power enables 400 km in… pic.twitter.com/5s1OW9c6eU

— BYD (@BYDCompany) March 18, 2025

The Big Picture

Taken together, variable electricity tariffs, fixed load charges, infrastructure costs, taxation, service charges and underutilisation add to your bill when charging your vehicle at a public charger.

While India’s absolute prices are still lower than in many Western countries, the relative affordability and accessibility of home charging highlight the need for policy support to make public EV infrastructure more economical.

While the government’s policies are encouraging, it has to not only match pace with the sales of the latest models of EVs in India but also go beyond to eliminate all kinds of anxieties associated with EVs.

By Arrangement with GoElec