We are often asked the question, “How much will it cost to install power in my new subdivision?” While we would like to be able to give a succinct, definitive answer, the fact is that there are many factors that determine the cost, so the cost can vary.
The cost of installation depends on many variables, the most significant of which include:
Location, location, location. How far the subdivision is from existing facilities is a huge factor in determining cost. The farther away the new development is, the more it will cost to build the infrastructure needed to install power lines. For example, if your subdivision is at the top of the mountain, a unique solution will be needed to get power up there—or you may need to use solar power— whereas a subdivision on flat land is closer to existing lines and infrastructure and therefore, less expensive to install.
Age and capacity. If there are existing facilities, but they are old and have limited capacity—they don’t have the capacity to power your development—they will need to be updated. Of course, the size of the subdivision you are building also factors into the capacity that is needed. Updating adds costs to the project.
Future needs. Even if you’re planning to start with just 10 houses in a subdivision and will expand in the coming years, you’ll need to install the infrastructure for the eventual units at the beginning. This may add a little more to your costs now, but will save you money in the long run, as it is much more costly to install lines once roads and other infrastructure are completed. In fact, the local utility company or municipality may require the capacity for future homes from the get-go.
Environmental conditions. The more difficult the terrain in and around the development, the higher the cost. Breaking through hard rock or dealing with groundwater requires additional equipment and manpower, and significantly slows the installation—all leading to higher costs.
Type of structure. The size of the structures you are building—single-family, multi-family or commercial—will affect your bottom line. Bigger buildings require 3-phase power to handle the capacity that is needed. However, if a bigger building is split into smaller units—in a multifamily structure, for example—the ratio of cost per unit can be less than that of single units. For example, in a development of single-family homes, one transformer might feed 4-6 homes, but in a multi-family building, that same transformer can possibly feed 12 units.
Size. It makes sense that the larger the subdivision, the higher the cost based solely on area. But there is also an additional factor that adds to the cost of bringing power to a larger subdivision. Larger developments require a 3-phase power backbone, while smaller developments can run on a single-phase backbone.
Conduit and power line considerations. There are numerous factors having to do with the conduit and power lines that will affect your costs, including:
- Many times, you can save a significant amount of money by choosing to have a third-party contractor (like CATO) install Applicant-Built Line Extensions rather than having the utility company install the lines.
- If you need to install other utilities, like the internet, trenches may be required, and the cost will rise.
- Waiting until asphalt is already in place will add expense. It is much easier and less expensive to install conduit before paving.
- If a sewer lift station or water pumps are needed, your bottom line will be affected.
- Installation of overhead lines is less expensive than underground lines which require trenching.
- If power lines must be moved, your costs rise significantly. It is extremely important to speak to the utility company prior to purchasing land and planning a development, or you could end up taking on a much bigger expense than you want to.
The cost of installing power to new subdivisions varies greatly depending on the size and scope of the project and many other factors. If you are building a subdivision in Northern Utah (Rocky Mountain Power area), call us. We’ll work with you to determine the best plan of action and provide an estimate for your project.