Last updated: May 2025

Nepal’s transition to electric mobility has gained significant momentum in recent years. With the government’s ambitious targets to reduce fossil fuel dependency and promote sustainable transportation, establishing EV charging infrastructure presents a promising business opportunity. This comprehensive guide walks you through every step of setting up and operating an EV charging station in Nepal.

Table of Contents

  1. Introduction
  2. Market Overview
  3. Regulatory Framework
  4. Registration Process
  5. NEA Compliance Requirements
  6. Financial Model
  7. Technical Setup Guide
  8. Banking and Administrative Procedures
  9. Tax Implications
  10. Frequently Asked Questions

Introduction

Electric vehicles are transforming Nepal’s transportation landscape, driven by government incentives, increased environmental awareness, and rising fuel costs. The Electric Vehicle Policy 2078 (2021) aims to increase EV adoption to 90% for two-wheelers and 60% for four-wheelers by 2030. This ambitious target creates substantial demand for charging infrastructure across the country.

Market Overview

Nepal’s EV market has seen remarkable growth, with registrations increasing by over 300% since 2020. The Nepal Electricity Authority (NEA) has established the foundation for a charging network, but significant gaps remain, particularly in:

  • Urban residential neighborhoods
  • Highway corridors
  • Tourist destinations
  • Commercial centers

Current charging station density sits at approximately one station per 1,200 registered EVs—far below the recommended ratio of one per 100 vehicles. This supply-demand gap presents a lucrative opportunity for entrepreneurs.

Regulatory Framework

The legislative framework governing EV charging stations includes:

  • Electricity Act 2049 (1992): Governs electricity distribution and usage
  • Electric Vehicle Charging Infrastructure Development Directive 2078 (2022): Primary regulatory framework specific to charging stations
  • Nepal Electricity Authority Guidelines (2023): Technical standards and grid integration requirements
  • Investment Board Nepal Guidelines: For large-scale charging infrastructure projects exceeding NPR 100 million

Registration Process

Step 1: Business Registration

First, register your business entity:

  • Sole proprietorship: Register at Department of Cottage and Small Industries
  • Private Limited Company: Register at Office of Company Registrar
  • Required documents include citizenship certificates, photos, business plan, and initial capital verification

Step 2: NEA Application

Submit an application to the Nepal Electricity Authority:

  1. Complete the “EV Charging Station Establishment Application Form” (Form ECSF-01)
  2. Provide detailed business plan and technical specifications
  3. Include location maps and site layouts
  4. Submit grid impact assessment study
  5. Pay application fee (NPR 25,000 for DC fast charging, NPR 10,000 for AC charging)

Step 3: Local Government Approvals

Obtain municipal clearances:

  • Land use verification
  • Construction permits
  • Environmental clearance (for stations with >4 charging points)

Step 4: Technical Compliance Verification

NEA will inspect:

  • Electrical safety systems
  • Grid connection requirements
  • Power quality management systems
  • Submit technical compliance bond (refundable) of NPR 100,000

Step 5: Final Registration

Upon approval:

  1. Pay registration fee (NPR 50,000 for fast charging, NPR 20,000 for AC charging)
  2. Sign NEA agreement for grid usage
  3. Receive operating license valid for 5 years (renewable)

NEA Compliance Requirements

Technical Standards

  • Equipment Certification: All charging equipment must meet IEC 61851 or equivalent standards
  • Power Quality: Harmonic distortion must remain below 5%
  • Safety Systems: Must include automatic circuit breakers, surge protection, earthing systems
  • Grid Compatibility: Smart load management systems mandatory for >50kW installations
  • Backup Power: UPS for payment systems and emergency lighting required

Operational Requirements

  • Data Sharing: Monthly reports on usage patterns submitted to NEA
  • Grid Management: Compliance with load shedding directives during peak hours
  • Tariff Display: Clear display of charging costs to consumers
  • 24/7 Support: Technical support contact information clearly visible
  • Annual Inspection: Facilities inspected yearly by NEA representatives

Financial Model

Capital Expenditure

Based on current market rates (May 2025):

ComponentAC Level 2 (7-22kW)DC Fast Charger (50kW)
EquipmentNPR 400,000-900,000NPR 2,500,000-4,500,000
InstallationNPR 100,000-200,000NPR 300,000-500,000
Grid ConnectionNPR 50,000-100,000NPR 200,000-400,000
Land (if purchasing)Varies by locationVaries by location
Software/Payment SystemsNPR 100,000-200,000NPR 200,000-300,000
Permits & RegistrationNPR 50,000-80,000NPR 100,000-150,000
Total Initial InvestmentNPR 700,000-1,500,000NPR 3,300,000-5,850,000

Operational Expenditure

Monthly expenses typically include:

  • Electricity costs: NPR 11.50-13 per kWh (commercial rates)
  • Maintenance: 3-5% of equipment value annually
  • Staff: NPR 20,000-40,000 per operator
  • Internet connectivity: NPR 5,000-10,000
  • Software subscription: NPR 5,000-20,000
  • Insurance: 1-2% of asset value annually

Revenue Streams

  1. Direct Charging Fees: Current market rates range from NPR 18-25 per kWh
  2. Subscription Models: Monthly packages for regular users
  3. Advertising: Digital displays at charging locations
  4. Convenience Store: Additional services while charging
  5. Carbon Credits: Register with national carbon trading platform

Profitability Projections

For a standard 50kW DC fast charging station with two charging points:

  • Average daily sessions: 8-12
  • Average energy per session: 15-20 kWh
  • Daily revenue: NPR 3,000-6,000
  • Monthly revenue: NPR 90,000-180,000
  • Operational costs: NPR 40,000-60,000
  • Monthly profit before tax: NPR 50,000-120,000
  • Estimated ROI period: 3-5 years

Technical Setup Guide

Site Selection Criteria

Optimal locations typically feature:

  • Proximity to high traffic areas or EV-dense neighborhoods
  • Minimum 100A, 3-phase power availability
  • Adequate parking space (minimum 25 sq.m per charging point)
  • Accessibility from major roads
  • Basic amenities (restrooms, shelter, lighting)
  • Mobile network coverage for payment processing

Installation Process

  1. Site Preparation:
    • Civil works for foundation and cable trenches
    • Weather protection structures
    • Parking space marking
    • Safety barriers
  2. Electrical Installation:
    • Transformer upgrades (if necessary)
    • Distribution panel setup
    • Earthing system installation (resistance <2 ohms)
    • Cable laying with appropriate conduits
  3. Charger Installation:
    • Mounting and securing charging units
    • Power connection and testing
    • Network and payment system integration
    • Safety systems verification
  4. Software Setup:
    • Backend management system configuration
    • User interface customization
    • Payment gateway integration
    • Remote monitoring system activation

Banking and Administrative Procedures

Banking Requirements

  1. Business Account Setup:
    • Open dedicated business account with any Class A commercial bank
    • Apply for merchant account for electronic payments
    • Suggested banks: NIC Asia, NMB Bank, Nepal Investment Bank (offer specialized green business accounts)
  2. Payment Systems:
    • Connect with digital payment platforms (Khalti, eSewa, ConnectIPS)
    • Integration requires merchant verification (2-3 weeks process)
    • Card payment systems require separate POS agreement
  3. Financial Documentation:
    • Maintain separate books for the charging business
    • Implement digital receipt system as per IRD guidelines
    • Register for e-billing system with IRD

Administrative Procedures

  1. Record Keeping:
    • Daily charging sessions log
    • Energy consumption records
    • Revenue records categorized by payment method
    • Maintenance logs for warranty and regulatory compliance
  2. Reporting Requirements:
    • Monthly energy consumption report to NEA
    • Quarterly business activity report to local municipality
    • Annual financial statements to IRD
    • Semi-annual safety compliance report to NEA
  3. Insurance Requirements:
    • Public liability insurance (minimum coverage NPR 5,000,000)
    • Equipment insurance covering electrical faults and natural disasters
    • Recommended providers: Shikhar Insurance, NLG Insurance, Nepal Insurance

Tax Implications

Business Registration Taxes

  • Company registration fee: 0.5% of registered capital (min. NPR 10,000)
  • PAN/VAT registration: No direct cost, but requires tax deposit

Operational Taxes

  • Value Added Tax (VAT): Standard 13% on charging services
  • Income Tax:
    • Small businesses: 10% on taxable income
    • Larger operations: 25% corporate tax rate
    • Green energy tax rebate: 20% reduction on income tax for first 3 years

Import Duties

  • EV chargers: 1% customs duty (reduced from 15% under green technology incentives)
  • Related components: 5-10% depending on classification
  • Additional charges: 13% VAT on import value

Tax Incentives

  • Accelerated Depreciation: 50% first-year depreciation allowance
  • Tax Holidays: 5-year partial tax exemption for stations in remote areas
  • VAT Refund: Expedited VAT refund process for capital expenditure

FAQs

Q: Is there a limit to how many charging stations one company can operate?
A: No, there’s currently no regulatory limit. However, for installations exceeding 10 charging points across multiple locations, additional grid impact assessment studies are required.

Q: Can I install solar panels to power my charging station?
A: Yes, hybrid systems are encouraged with additional tax benefits. The NEA offers net metering arrangements for grid-connected solar systems, allowing surplus energy to offset charging costs.

Q: What are the minimum technical qualifications needed to operate a charging station?
A: The facility must employ at least one certified electrical technician with Level 3 certification from CTEVT or equivalent, with specialized training in EV charging systems.

Q: How long does the entire registration process typically take?
A: The complete process from initial application to operational approval typically takes 3-5 months, with the NEA technical evaluation being the longest phase (approximately 60 days).

Q: Can I set my own charging prices?
A: Yes, pricing is largely unregulated, though the NEA has published recommended ceiling rates (NPR 25/kWh for DC fast charging, NPR 18/kWh for AC charging) to promote adoption.

Q: What maintenance contracts are available in Nepal for charging equipment?
A: Several suppliers including Nepal Charging Systems, EV Nepal, and Himalayan Sustainable Energy now offer comprehensive maintenance packages ranging from NPR 60,000-120,000 annually depending on equipment type.

Q: Are there government subsidies available for establishing charging stations?
A: The Alternative Energy Promotion Center (AEPC) offers capital subsidies covering up to 40% of equipment costs for stations established outside Kathmandu Valley, with maximum support of NPR 1,500,000 per location.

Q: What happens if there’s a power outage during charging?
A: Modern charging equipment includes safeguards to prevent damage to vehicles. Regulations require all stations to have backup power for orderly shutdown and transaction preservation.

Conclusion

Establishing an EV charging station in Nepal represents not just a business opportunity, but a contribution to the nation’s sustainable development goals. While the regulatory framework and infrastructure requirements may seem complex, the growing market and government incentives create a favorable environment for entrepreneurs in this space.

As Nepal continues its push toward electric mobility, early entrants in the charging infrastructure market stand to gain significant advantages in terms of location selection, customer loyalty, and operational experience.

Disclaimer: This guide reflects regulations as of May 2025. Given the rapidly evolving nature of EV policies in Nepal, prospective investors should verify current requirements with relevant authorities before proceeding.

About the Author: This comprehensive guide was developed through consultation with industry experts, regulatory authorities, and successful charging network operators across Nepal.