Building a house on your own land is exciting—but it comes with unique challenges you won't face in a typical subdivision. Sure, you get the perk of not having your neighbor's house 10-feet away, but that also means you might be dealing with some complicated utility setups—particularly when it comes to electricity.
So the question is… How do you get the electric service run to your property, and how much will it cost? Here's the guide on how to figure it out.
First thing to understand: every electric utility company seems to have a different policy and procedure, and you might have to do some digging to even find out which company you'll be dealing with.
Who is My Electric Company?
Here's a weird question for you: do you know who your electric company is? If you're scratching your head, don't be embarrassed. It’s more complicated than you may think. One of our recent clients had been researching for months before we began building, and even potential electricity providers ended up arguing back and forth about who will serve the house. Not even the professionals always know.
To get started on your own electrical detective work:
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Ask your future neighbors who they're sending their checks to.
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Take a stroll and check out the utility poles near your property. Look for those little placards with company names.
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Try a website like In My Area to get some leads.
The main thing is to start calling the most likely candidates. Ask local electricity companies about your specific piece of land. They'll either confirm they serve it, or point you in the right direction. It might take some persistence, but hey, that's part of the adventure of building on your own land, right?
For more insights on navigating the early stages of your build, check out our blog post on 5 Things to Consider Before Breaking Ground on Your Custom Home.
How Much Will It Cost?
The cost to install utilities on land can vary wildly. According to recent data, you're looking at anywhere from $2,500 to $12,500 to run electricity from the road to your house, or about $5 to $25 per linear foot. But what factors into this price tag?
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Distance from the nearest power pole to your future home site
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Whether a new transformer needs to be installed
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Number of new poles required
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Amount of wire to be run and trenching needed
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Vegetation clearing requirements
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Overhead vs. underground wiring
Some electric companies might provide a certain amount of wire and trenching for free, and you only pay for the extra.
Others... Well, let's just say they're not as generous.
For those of you number crunchers out there, you might be wondering about the cost of installing electrical wiring per sq ft. On average, new construction electrical wiring costs between $4 to $9 per square foot.
Remember, these costs are just for getting power to your property. If you want to dive deeper into the nitty-gritty of home building costs, check out our blog on Understanding the True Cost of Building a Custom Home.
How Does the Process of Running New Electric Service Work?
Alright, so you've figured out who your electric company is and you've braced yourself for the potential costs. Now, let's walk through the process of actually getting that sweet, sweet electricity to your new home. Spoiler alert: it's not as simple as writing a check and flipping a switch.
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Meet the Engineer: The electric company will send out someone they call an "engineer" to scope out your property. This person will map out how they'll run the new lines and let you know about any clearance requirements.
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Clear the Way: Based on the engineer's assessment, you'll need to clear any trees or obstacles in the path of the new lines.
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Sign on the Dotted Line: You'll establish a "contract for service" with the electric company.
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Prove You're Serious: Most electric companies want to see your foundation and slab in place before they get to work.
According to a recent study by the National Association of Home Builders, regulatory requirements can add nearly $94,000 to the price of a new home. While this isn't all due to utilities, it's a reminder of how complex the process can be.
Remember, patience is key here. If you need some inspiration for your new home, check out our guide to "Building the Perfect Home on Your Land.” It's packed with tips to make your journey smoother.
What to Watch Out For
Building your dream home is exciting, but it can also feel like you're navigating a minefield of potential issues. Here are some key things to watch out for when it comes to getting electricity to your new home:
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Get Everything in Writing: When you meet with the electric company's engineer, treat it like you're signing a peace treaty. Get their name, phone number, and have them write down everything you discussed.
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Communicate, Communicate, Communicate: Sometimes, the electric company will hire outside contractors to do the clearing for the new lines. And sometimes, there's a game of telephone going on between all parties involved. Your job? Be the switchboard operator. Follow up regularly with both the electric company and the contractor. Don't be shy about asking for the contractor's contact info—the electric company might not volunteer it, but they won't withhold it if you ask.
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Track That Inspection: Before the electric company will install your meter, the city or county might need to inspect your wiring and temporary pole. Then, they're supposed to send a record of the passed inspection to the electric company. Follow up regularly with the electric company and ask if they've received the inspection results. Sometimes they'll say they haven't received it even if the city swears they sent it.
Remember, each electric company has its own set of policies and procedures, and each one comes with its own flavor of bureaucracy. It's the same story with city and county governments. Patience and persistence are your best friends here.
Conclusion
So there you have it, folks—the ins and outs of getting electricity to your new home on your own land. With the right information and a bit of patience, you'll be flipping switches and plugging in appliances before you know it.
Remember, every electric company has its own set of rules and every piece of land comes with its own unique challenges. But that's part of what makes building your own home on your own land so rewarding.
And, if you ever feel like the process is overwhelming, just remember: we're here to help. For more on the cost to build and how to budget, check out some of our other articles or download our free guide below.
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