How Much Does It Cost for Underground Electrical Service?

Summary: Transitioning to underground electrical service enhances reliability, safety, and aesthetics but involves significant costs. Here’s a breakdown of factors influencing costs and benefits:

• Who Pays? Homeowners or local governments, often through tax-funded projects.
• Key Cost Factors: Excavation, distance from power source, materials, permits, labor, and clean-up.
• Typical Costs: Residential projects range from $5,000–$20,000+, depending on distance and complexity.
• Long-term Savings: Lower maintenance and repair costs make it a worthwhile investment.
• Next Steps: Get a cost estimate and explore energy pricing options to reduce ongoing expenses.

There have been quite a few weather events described as “the storm of the century” this century.

In fact, according to the National Weather Service, there have been over 30 major storms since the year 2020. Thus, the transition from suspended electrical wires to underground electrical service is more than an aesthetic upgrade. It may be necessary to ensure a safe continuation of service following major weather events in the future.

How much does it cost for underground electrical service, and is it necessary?

In this guide, we’ll discuss what goes into the average cost of underground electrical service. You’ll learn about the factors that influence the cost, including materials, distance, and labor. Continue reading to learn precisely what goes into the process of moving your wires underground.

In areas prone to extreme weather, underground service is often the default. Likewise, newer developments are more likely to have underground service than older locations or rural neighborhoods.

This “future proofing” is safer and more cost-effective during the escalating climate crisis. Some areas may even require new constructions to install underground electrical service. This requirement ensures they meet the most current zoning or safety codes.

However, many areas, especially older, established areas, still use suspended power lines. In order to make the switch, either homeowners or local governments must fund the upgrade.

Governments typically pay for underground electrical service tied to public infrastructure projects. These upgrades are often tax-funded, so residents technically help pay for infrastructure upgrades. They may also choose to fund upgrades to provide broader community benefits, especially in higher-income communities.

With that said, residential installations of underground electrical service are becoming increasingly common. For homeowners considering underground service, the decision often hinges on balancing the higher initial cost with long-term benefits. Aesthetics, safety, and reliability are all factors.

While there is a higher upfront investment, underground systems require less maintenance and fewer repairs over time. You may find your upgrade to underground service is more cost effective in the long run.

There are many discrete factors that influence the cost of moving your electrical service underground. We’ll address the biggest factors that influence residential installation costs below.

In order to install electrical wires underground, you first need a place to lay them. That involves trenching, or digging into the ground to make a channel for the wires. The depth of your underground electrical service can impact the cost.

The cost depends on the type of terrain, which can impact the difficulty of the job and, thus, the cost. There may be additional costs in urban areas, which have stricter regulations and more pre-existing underground systems. Furthermore, boring under driveways or sidewalks often involves additional labor costs.

Projects in environmentally sensitive areas may require additional planning and mitigation measures. These can also impact the cost to the homeowner.

How far is your home from the nearest transformer or utility pole? The further the distance, the more materials you will need to bridge the gap. More materials means a higher material cost and, often, a higher labor cost to install them.

The cost per foot for underground electric service can vary significantly based on local conditions. Estimates range from $10 to $30 per linear foot, depending on the materials and terrain.

Not all electrical wires are created equal. If you’re installing underground electricity, it’s wise to upgrade to the most modern and conductive materials. However, the highest quality copper wires will cost you a lot more than aluminum wires. You’ll need to decide if you want to pay to re-excavate if you decide to upgrade your wiring later on.

Likewise, in some cases, additional equipment may be needed to complete the job. New transformers, junction boxes, or meter upgrades will add to your final cost.

Your local government may have requirements for homeowners who choose to install underground electrical wires. You may need to file for permission, pay for a permit, and undergo a formal government inspection. If the inspector finds any issue with the installation, you will need to pay to repair it to avoid fines and fees.

Labor rates will depend on who is performing the work. Private contractors may cost you more than your local utility company. The more complex the project, the more costly labor will be, regardless of who you hire.

There may be some restoration costs involved following your installation. You may need to replace landscaping elements or pavement on your property.

Based on the above information, it’s clear that the total cost to install underground electrical service varies significantly. According to Politico, underground electrical service costs about $1.5 million per mile. That is compared to $284,000 per mile for overhead lines.

On average, residential upgrades requiring 100 feet of wiring or less often cost between $5,000 and $10,000. That is the base fee, plus permitting and restoration costs. With that said, longer installations, or those involving complex terrains, can be significantly more costly. Some residential installations cost over $20,000.

We recommend getting an estimate to determine if making the switch to underground service is financially feasible.

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