Solar-Powered EV Charging in India’s Tier-2/3 Cities: Opportunities and Challenges 

As of FY2025, Tier-2 and Tier-3 towns each accounted for over 10% of India’s EV market. Two-wheelers dominate: about 58% of EVs in Tier-2 and 71% in Tier-3 are electric scooters and motorcycles. Electric auto-rickshaws (3-wheelers) make up the next largest share, approximately 30% in Tier 2 and 22% in Tier 3. These trends reflect booming mobility demand in India, where rural and small-city Indians are adopting EVs to save on fuel costs.

Public charging infrastructure, however, lags behind.  Nationwide, there were only about 25,200 public chargers by mid-2025, heavily clustered in a few states.  Tier-2/3 states have far fewer stations.  

Decentralized solar-powered charging has emerged as a promising solution. Thanks to India’s abundant sunshine, even small solar arrays can meaningfully power EVs.  WWF reports that roughly two-thirds of India’s land (>1.89 million km²) receives more than 5 kWh/m²/day on average.  A 5kW PV system typically yields 20–25 kWh per day, enough to add 60–80 km of range to a scooter, sufficient for most rural commutes.  A modest rooftop PV setup (4kW) requires only 300–350 sq ft of area and costs ₹3–4 lakh (pre-subsidy). Larger ground arrays (10–50 kW) cost about ₹45–50 thousand per kW installed. Battery storage adds to the cost (around $100/kWh, or ₹9k/kWh), though prices are falling. 

This blog covers three core themes: 

• Where and how solar-powered charging models are already working 
• Whether the economics make sense (a close look at capital costs, operating savings, subsidies, and payback periods) 
• The challenges to scaling solar charging and practical solutions  

Why Solar EV Charging Makes Sense for India’s Small Cities and Towns 

Solar charging can take several forms in Tier-2/3 contexts: 

• Standalone PV charging stations: Off-grid “solar pumps” for EVs, typically with a PV array, inverter, and chargers (plus optional battery). These can be sited anywhere sunny—on open land, village squares, or petrol pumps. For example, Jabalpur (Madhya Pradesh) launched nine standalone solar e-rickshaw charging stations serving approx. 400 vehicles. Each station has approx. 50kW of PV and can charge up to four e-rickshaw batteries in 7–8 hours. The result: Drivers’ charging costs dropped to approx. ₹30 per charge (vs. ₹40–50 on the grid). 

• PV + storage hybrids: Solar panels tied to a battery bank ensure 24×7 availability. A pilot near Bengaluru Airport integrates 45kW of rooftop PV with a 100kWh second-life battery system. Solar fills the batteries by day, which then supply chargers at night or during peak grid hours. This RE2EV hub runs nine fast chargers and can charge 23 vehicles simultaneously, cutting grid strain. 

• Solar microgrids: Solar microgrids combine PV (often ground-mounted) with storage and multiple fast chargers. For example, in 2024, BluSmart, in collaboration with the Haryana Renewable Energy Development Agency (HAREDA) built  a  1.2 MW solar EV microgrid in Gurugram, powering 150 fast chargers and serving ~2,000 EVs per day. Tata Power and Indian Oil Corporation have also announced plans for similar solar-charging farms. Such microgrids can serve highway corridors or entire towns by acting as renewable power stations. 

• Battery-swapping stations with solar: Swapping batteries removes the charging time issue, especially for 2- and 3-wheelers.  Sun Mobility is scaling battery swapping for 2Ws/3Ws, moving from its 2024 target of ~300 solar-powered kiosks to a national rollout with Indian Oil, aiming for 10,000+ stations by 2027. 

• Community solar hubs: Small solar chargers can sit at local businesses, panchayat halls, or schools. Entrepreneurs are already experimenting with rooftop solar feeding wall-plug chargers.  These decentralized models cost 80–90% less than urban DC stations and fit village power limits. Over time, a “sun-to-scooter” ecosystem may emerge, where microgrids and rooftop PV become the backbone of rural mobility. 

Crucially, India’s solar resource can support these ambitions. Even partial deployment can significantly offset grid use. For instance, a 10kW solar array generates approx. 40–50 kWh/day, enough to charge an electric scooter (~100 Wh/km) for ~400km of travel daily. 

Economics and Financing 

A key question is cost and return on investment. Compared to metros, Tier-2/3 chargers tend to be lower-power (3–15 kW AC rather than 150+ kW DC) because vehicles are lighter and distances shorter. Indicative costs (excluding installation): 

• EV chargers: A 15kW AC charger costs ₹3.5–4 lakh. A 60kW DC fast charger runs ₹3–7 lakh. Installation (cabling, transformer, site work) add more. 

• Solar PV: Rooftop PV costs about ₹45,000–50,000 per kW installed. A 10kW system is roughly ₹4.5–5 lakh (before any subsidies). For reference, a 4kW home system costs approx. ₹2.9–3.1 lakh.) Ground-mount utility PV costs even less per kW. 

• Battery storage: Battery packs remain expensive and cost approx. $108/kWh (about ₹9,000/kWh). Thus, 100 kWh of storage is approx. ₹9–10 lakh.  

However, solar charging also saves money. Once installed, solar power is free fuel. Grid power in rural areas may cost ₹7–8 per kWh, whereas solar can cut effective electricity costs to near zero. For EV owners, this translates into very low per-km cost: approx. ₹0.15–0.20/km for electric two-wheelers vs ₹2–2.5 for petrol. Savings accumulate quickly; one analysis estimated annual operating savings of ₹25,000–30,000 per vehicle. 

Government incentives improve economics further. The PM E-Drive earmarks ₹2,000 crore for 22,100 chargers by 2026. The Ministry of New and Renewable Energy (MNRE) has set aside $120 million under the National Solar Mission for solar EV charging by 2027 with draft guidelines offering up to 50% capital subsidy. 
 
States like Uttar Pradesh, Gujarat and Rajasthan waive land conversion fees and grant additional incentives for EV infrastructure. The Bureau of Energy Efficiency’s new “Green Charging” initiative (2024) mandates that 25% of new public chargers by 2026 source at least half their power from renewables. Public–private collaborations are also reflecting this push: Adani Green Energy and ChargeZone have announced 1,000 solar-powered chargers along the Delhi–Mumbai Expressway. 

A rough cost breakdown for a small solar charging station might look like: 

• PV panels and inverter (10 kW): approx. ₹4.5–5 lakh. 
• Charger (15 kW): approx. ₹4 lakh. 
• Mounting, wires, installation: ₹1–2 lakh. 
• Battery (100 kWh): approx. ₹9 lakh. 

So, a 10 kW PV + 15 kW charger + moderate storage could total approx. ₹15–20 lakh. With government support (50% subsidy on the charger or PV, cheap loans), this cost drops significantly. A 10 kW PV system generates approx. 12,000–15,000 kWh/year, saving ₹90,000–1.2 lakh annually. At this rate, a 3–5 year payback is plausible. 

Challenges and Solutions

Despite the potential, several hurdles remain. 

• Intermittency and storage cost: Solar generates only during the day. Without batteries or a grid tie, charging stations would only work daytime. Adding enough battery storage for night charging drives up cost (₹9k/kWh). Second-life EV batteries (as in Bengaluru’s RE2EV) help but still add complexity. In most Tier-2/3 contexts, a hybrid approach (solar by day, grid or battery at night) is needed. 
• Maintenance and reliability: Solar panels need periodic cleaning and inspection. Battery banks and chargers require technical upkeep, which may be scarce in small towns. Local technician training is important. Moreover, panels and inverters must withstand local weather (dust, heat). 
• Awareness and trust: Rural customers and local officials may be unaware of solar-EV options. Outreach and visible pilots (like Jabalpur’s hub) can build confidence.  
• Upfront capital and business models: Even with subsidies, building solar stations requires upfront capital. Private operators worry about low initial demand in small towns. Innovative models (grants, concessional loans and CSR funding) can mitigate this. Peer-to-peer approaches (e.g. local entrepreneurs sharing risk in PPPs) are promising. 
• Proposed solutions: Analysts suggest combining approaches. For example, power-sector regulators and DISCOMs should co-plan with EV-charging companies to use solar and demand management..  
• Public–private partnerships (PPP) can mobilize investment: start-ups building village chargers could partner with utilities or panchayats. In fact, some EV infrastructure firms are already piloting solar micro-grids for rural e-rickshaw fleets. Also, technical workarounds like swapping (batteries replaced rather than charged) reduce grid dependence and are well-suited to off-grid solar. 

Role of Policy and Partnerships 

Beyond technology, governance will shape outcomes. Central schemes (FAME-II, E-Drive) are creating the funding framework, but many incentives target metros and highways. Policymakers must explicitly include Tier-2/3 solar charging in state EV policies. For instance, land-use norms could allow solar on common property (temple/market rooftops). DISCOMs should view solar chargers as allies and fast-track approvals. 

Local governments can designate charging sites at bus stands, schools or mandi complexes. Microfinance or rural banks can support entrepreneurs to install chargers. Training institutes (like the new EV and Solar skill centers) should include solar-EV tech in curricula, so technicians are available locally. 

Public–private collaborations are already underway. Major oil companies (IOC, HPCL) are rolling out EV chargers at their rural outlets, with plans to integrate solar. Tata Power has committed to equipping many of its new chargers with solar capacity. Startup–NGO partnerships (e.g. GIZ-BESCOM) developed the RE2EV solar hub in Bengaluru highlight the potential. 

Case Studies: Learning from Pilots

Several real-world examples illustrate the potential: 

• Bengaluru, Karnataka (2025): The RE2EV hub at Kempegowda Airport pairs 45 kW of rooftop solar with a 100 kWh second-life battery. It runs nine fast chargers (capable of 18 simultaneous charges) almost round-the-clock, reducing grid pressure. This project shows a model for other Tier-2 cities (e.g., Mysuru, Vijayawada). 

• Jabalpur, MP (2017): The city set up nine solar-powered charging kiosks for its approx. 400 e-rickshaws. Each 50kW station could charge four rickshaw batteries in one cycle. Drivers report that charging at these stations costs approx. ₹30, versus ₹45–50 if using grid electricity. This has encouraged more e-rickshaw owners to switch to electric, proving a “replicable model” for other small cities. 

• Delhi–Mumbai Expressway (upcoming): Leveraging a BEE mandate, Adani Green Energy and ChargeZone plan 1,000 solar-powered chargers along the highway. The first of these combines a solar canopy with EV stalls, providing clean fast-charging at intervals. Highways are often Tier-2/3 linkages, and this shows how solar can serve corridor traffic while reducing carbon footprint. 

Future Outlook 

Solar EV charging can offer multiple long-term benefits for smaller cities and rural areas. By integrating into village power systems, these setups can double as mini-grids. For example, an EV charging station with battery storage could also supply nighttime lighting or pump irrigation after business hours. This leverages idle solar energy and improves local electrification. It also adds resilience: during power cuts, solar chargers with storage could keep critical loads or emergency vehicles running. 

Energy-wise, solar EV infrastructure moves India toward a virtuous cycle. Vehicles become not just transport but distributed storage (via V2G in the future), and rooftop solar investments will gain additional revenue streams through vehicle charging.  

Environmentally, widespread solar charging reduces tailpipe and coal-power emissions. Socially, it democratizes clean mobility: villagers gain low-cost charging, making EVs more accessible. Early studies note that rural commuters (10–25 km/day) fit EV range perfectly and that using solar cuts their daily energy costs to just a few rupees.  

If even 10–20% of small-town charging goes solar, it could save hundreds of GWh annually and avoid millions of tons of CO₂. As one analysis notes, an EV-powered village economy (with solar at its core) can thrive “even with weak grid connections”. 

In sum, solar-powered EV charging in Tier-2/3 India is viable and valuable but requires thoughtful execution. Key steps include targeting the right technology (smaller chargers, smart storage), securing affordable financing (leveraging new subsidies), and forging strong partnerships (utility–private–community).  

With 5–7 kWh/m²/day of sun and falling hardware costs, the technical foundation is solid. By building on the successful pilots and addressing the challenges above, India can spark an electric mobility revolution not only in its cities but across India, delivering clean, affordable transport and energy to all.