Economic Optimization of EV Charging Stations Using IoT

Abstract

This study, titled "Economic Optimization of EV Charging Stations Using IoT," evaluates the operational costs, station utilization efficiency, revenue growth, and financial feasibility of Internet of Things (IoT)-driven electric vehicle (EV) charging station networks. EV charging infrastructure expansion requires substantial capital deployment, where grid energy purchases account for 52% of total operational expenditures. A five-year project lifecycle (2021-2025) of an IoT-enabled smart charging network is analyzed using standard capital budgeting parameters: Net Present Value (NPV), Internal Rate of Return (IRR), Payback Period (PBP), and Benefit-Cost Ratio (BCR). Quantitative analysis indicates that deploying IoT sensor telemetry and AI-driven microgrid coordination increases station utilization rates from an unmanaged baseline of 24% to 88%. Dynamic IoT load management lowers average energy acquisition costs from 9.2 INR/kWh to 4.6 INR/kWh, driving Return on Capital Employed (ROCE) to 34.2% and supporting 520,000 daily charging sessions generating 680 Crores in net revenue by 2025. The financial model yields a positive NPV of 284.5 Crores and an IRR of 38.6%, far exceeding the 10% discount hurdle rate. The study concludes that investing in IoT energy optimization platforms is highly viable, enabling EV charging operators to maximize asset utilization and improve network profitability.