The market for electronic vehicles (EVs) is expanding rapidly, creating a demand for charging station businesses. To start a charging station business, conducting research is the first and most crucial step. This includes finding out if there is a demand and where it comes from.

According to GreenCape, EV sales in South Africa grew by 85,46% from 502 vehicles sold in 2022 to 931 vehicles sold in 2023. There was a 35% increase to 1257 vehicles sold in 2024; however, the increase was much lower than the growth in 2023.

In this article, we’ll help you discover the best approach to starting a charging station business.

How Does a Charging Station Work?

An EV charging station is beyond merely plugging in and charging a vehicle. Behind what we see on the surface is smart grid technology. This includes:

• Smart Load Management: to prevent overloading local grid infrastructure, especially during peak demand or load shedding.
• Connectivity and Billing Systems: networked chargers require software for authentication, payment, monitoring, and sometimes remote diagnostics.
• Standards and Compatibility: South Africa follows the Standards Act, 2008 (Act No. 8 of 2008), in accordance with the Board of the South African Bureau of Standards. The EV charging standards are:

SANS 62196-2 dictates that in South Africa, the allowed configuration for all AC conductive charging on domestic, industrial, commercial and public access charging stations shall be of a Type 2 socket only. On the other hand, SANS 62196-3 dictates that in South Africa, the allowed configuration for DC conductive charging for domestic, industrial, commercial and public access charging stations shall be configuration type AA (CHAdeMO) and configuration type FF (COMBO 2).

Types of Charging Stations

There are different charging station options. This is because they differ in speed, cost, and infrastructure demand. If you’re keen on venturing into this business, you must look into the different types of charging equipment and how they differ in power. This includes:

• Level 1 / slow AC (e.g. standard household or light commercial): This is the entry-level, low-power option, and the cheapest one. Powers around 7 kilowatts. Mainly useful for overnight charging or workplaces where cars are parked for several hours.
• Level 2 / faster AC (11-22 kW or more): This option needs three-phase power or upgraded electrical panels and is more expensive due to the infrastructure. This is suitable where dwell time is moderate, like shopping centres, hotels, and offices.
• DC fast chargers (Ultra-fast: 50-200+ kW): This option has the highest infrastructure cost out of the three. There’s a higher energy demand, more challenging grid support, and faster payback if placed in high-traffic locations.

Where to Start With an EV Charging Business?

To start an EV charging business, there are critical insights needed that can lead you in the right direction. This includes:

Market and Location Analysis

• Traffic and Dwell Time: You must look at how long it takes to charge an EV. Placing a DC fast charger is only viable when people stay at least 20-30 minutes.
• Electric Grid Capacity: Many rural or older urban sites require electrical panel upgrades or even transformer capacity increases. These upgrades can run into tens of thousands of rands.
• Load Shedding and Reliability: Some businesses are using off-grid solar plus battery storage to ensure uptime. For example, CHARGE’s off-grid station in Wolmaransstad is powered by renewable energy to guard against grid interruptions.

Regulatory, Permits and Compliance

• SANS standards: As mentioned above, ensuring charger types and safety meet SABS/SANS norms (Type 2 AC, CHAdeMO / Combo 2 DC). Using unapproved connectors or substandard equipment could lead to fines or liability.
• Municipal approvals: Permit fees vary. Ensure you receive approval from your local municipality and check what the permit fees are.
• Land use / zoning: If you’re planning placing your charging station on any land, even one that you own, ensure you obtain rights for the charging station, safety, signage, and local traffic rules.

Where to Get Information and Partnerships for an EV Charging Business in South Africa?

To make informed decisions and avoid costly mistakes. Ensure you do the following:

• Consult with industry bodies and standards authorities: This includes the South African Bureau of Standards (SABS) and familiarising yourself with SANS standards for plug and socket standards.
• Technical consultants: Electrical engineers familiar with power systems, grid connection, and load shedding mitigation.
• Partnership: Reach out to EV charger providers like Plug n Drive for potential partnerships or supplier deals.
• EV Charging Point Operators (CPOs): Study what leading players are doing. What AC/DC mix are they using, where are their stations, how do they price, what partners (shopping malls, hospitality) do they use? This will help you with your research and competitor analysis process.
• Franchise/EV Charging Partner: If you’re interested in investing in a franchise opportunity, this might be the perfect fit. In the EV charging industry, you can become a charging partner with an EV charging provider. Examples of providers include Charge, GridCars, Rubicon, and more.