Electric Hookup Costs for Raw Land 2026

You found the perfect piece of land. Great price, beautiful location, ready to build. Then you ask the utility company about electric service and get a quote: $35,000 to run power 800 feet from the road.

Suddenly your affordable dream property just got a lot more expensive.

Electric service is one of the most variable and often underestimated costs in land development. A property 200 feet from existing lines might cost $3,000. An identical property 1,000 feet from lines could cost $40,000.

This guide breaks down exactly how electric hookup costs work, what you'll pay, and how to minimize expenses before you buy.

⚡ How Electric Hookup Costs Work

Unlike well drilling or septic systems where you hire a private contractor, electric service comes from your local utility company. And they have their own rules, rates, and policies.

The Basic Process

You contact the utility company with your property location
They conduct a site visit to assess distance and requirements
You receive a cost estimate for line extension
You pay the quoted amount (or your portion)
Utility installs the service (timeline: 2-12 months)
Your electrician connects from meter to house

Two Cost Components

Line extension: Getting power from existing lines to your property
Service installation: Meter, panel, and connection to building

This guide focuses on line extension - typically the largest expense.

💰 Electric Hookup Costs by Distance

Most utility companies charge based on linear feet from the nearest utility pole or transformer to your meter location.

National Average Costs

0-100 feet from road:

Overhead: $2,000 - $5,000
Underground: $3,000 - $8,000

100-300 feet:

Overhead: $5,000 - $12,000
Underground: $8,000 - $18,000

300-500 feet:

Overhead: $10,000 - $20,000
Underground: $15,000 - $30,000

500-1,000 feet:

Overhead: $20,000 - $40,000
Underground: $30,000 - $60,000

1,000-2,000 feet:

Overhead: $40,000 - $80,000
Underground: $60,000 - $120,000

2,000+ feet:

Overhead: $80,000 - $150,000+
Underground: $120,000 - $200,000+

Cost Per Foot Ranges

Overhead lines: $5 - $25 per linear foot
Underground lines: $15 - $50 per linear foot

Why such big ranges? Terrain, obstacles, transformer needs, and utility company policies dramatically affect pricing.

🏗️ Overhead vs. Underground: What's the Difference?

You'll need to choose between overhead power lines (on poles) or underground (buried cables).

Overhead Lines

Cost: $5 - $25 per linear foot

How it works:

Utility company installs poles along route
Power lines strung between poles
Lines run to weather head on building

Pros:

✅ Significantly cheaper installation
✅ Easier maintenance and repairs
✅ Faster installation
✅ Better for difficult terrain
✅ Ice and storm damage easier to fix

Cons:

❌ Visible power lines affect aesthetics
❌ Vulnerable to storm damage
❌ Can interfere with tree growth
❌ May require tree trimming/removal
❌ Some HOAs prohibit overhead lines

Best for: Rural properties, wooded areas, steep terrain, budget-conscious buyers

Underground Lines

Cost: $15 - $50 per linear foot

How it works:

Utility company trenches route to property
Cables buried in conduit 24-36" deep
Service enters building underground

Pros:

✅ Clean aesthetic (no visible lines)
✅ More reliable in storms
✅ No tree trimming needed
✅ Better for high-end neighborhoods
✅ No poles to maintain
✅ May increase property value

Cons:

❌ 2-3x more expensive than overhead
❌ Difficult repairs (requires excavation)
❌ Longer installation timeline
❌ Not feasible in very rocky terrain
❌ Wet/marshy areas add complexity

Best for: Subdivision lots, areas requiring underground utilities, high-value properties, flat terrain

📊 What Affects Electric Hookup Costs?

1. Distance from Existing Lines

The #1 cost factor. Every foot costs money.

Measuring tip: Distance isn't "as the crow flies" - utilities follow easements, roads, and property lines.

Example:

Direct distance: 500 feet
Actual route following road: 750 feet
You pay for 750 feet

Critical: Measure actual route, not straight-line distance.

2. Terrain & Obstacles

Flat, clear terrain: Standard rates

Difficult conditions add costs:

Rocky soil: +30-50% (harder trenching/drilling)
Wetlands/streams: +50-100% (special crossing requirements)
Steep slopes: +20-40% (equipment access challenges)
Dense woods: +15-30% (clearing needed)
Existing roads to cross: +$2,000-$8,000 per crossing

Most expensive: Crossing creeks, ravines, or state highways

3. Transformer Requirements

Standard residential service (200-400 amp): Usually no transformer needed if close to existing infrastructure

Requires new/upgraded transformer ($3,000 - $10,000):

Large homes (400+ amp service)
Multiple buildings on property
Far from existing transformers
Agricultural/commercial use
Shop with heavy equipment

Pole-mounted transformer: $3,000 - $6,000
Pad-mounted transformer (underground): $5,000 - $10,000

4. Utility Company Policies

This is huge. Policies vary dramatically between companies.

Company A might:

Cover first 300 feet free
Charge $15/foot after that
Require underground in subdivisions

Company B might:

Charge for every foot
Rate of $35/foot
Allow overhead anywhere

Always get specific policy details for YOUR utility company.

5. Service Size

Standard residential (200 amp): Base rates

Larger service adds costs:

400 amp service: +$1,000 - $3,000
600+ amp service: +$3,000 - $8,000
Three-phase power: +$5,000 - $15,000

6. Right-of-Way & Easements

Crossing your own land: No extra cost (beyond installation)

Crossing others' property:

Easement acquisition: $500 - $5,000+
Legal fees: $1,000 - $3,000
Surveying: $500 - $2,000

Road/highway crossings:

County road: $2,000 - $5,000
State highway: $5,000 - $15,000
Private driveway: $1,000 - $3,000

🏢 Utility Company Allowances & Credits

Many utility companies offer "allowances" that reduce your out-of-pocket costs. Understanding these can save thousands.

Common Allowance Types

1. New Customer Allowance

Typical range: $500 - $2,000
Some utilities: $3,000 - $5,000
Applied automatically to line extension costs

2. Footage Allowance

Common: First 200-500 feet free
You pay for distance beyond allowance
Varies widely by utility

3. Revenue-Based Allowance

Based on projected electricity usage
Higher usage = larger allowance
More common in commercial applications

4. Construction Allowance

Fixed credit toward installation
Applied after work completion
May require minimum usage commitment

Example Calculation

Scenario: 800-foot line extension
Utility rate: $25/foot
Base cost: $20,000

With allowances:

First 300 feet: Free (footage allowance)
New customer credit: -$1,500
Remaining 500 feet × $25/foot = $12,500
Your cost: $11,000 (saved $9,000)

Critical: ALWAYS ask about allowances before accepting a quote.

🗺️ Regional Cost Variations

Electric hookup costs vary significantly by region due to labor rates, terrain, and utility company policies.

Most Expensive Regions

1. Northeast ($30-$60/foot)

High labor costs
Rocky terrain common
Difficult winters delay work
Many utilities require underground

2. Mountain West ($25-$50/foot)

Steep terrain
Rocky soil
Remote locations
Limited contractor availability

3. Hawaii ($40-$75/foot)

Island logistics
Volcanic rock
Limited utility capacity
High material costs

Most Affordable Regions

1. Southeast Plains ($8-$20/foot)

Flat terrain
Easier excavation
Lower labor costs
More overhead options

2. Midwest ($10-$25/foot)

Flat land
Competitive contractors
Straightforward installations
Good soil conditions

3. Texas/Southwest ($12-$30/foot)

Generally flat
Lower labor costs
Varies by region (Hill Country more expensive)

⚠️ Common Electric Hookup Mistakes

1. Not Getting Quote Before Buying

The mistake: Assuming "there's power at the road, so it'll be cheap"

The reality: 500 feet from road to building site = $15,000-$25,000

The fix: Contact utility company during due diligence. Get written quote BEFORE closing.

2. Measuring Wrong Distance

The mistake: Measuring straight-line distance: "It's only 300 feet!"

The reality: Power must follow easements/roads: Actually 600 feet

The fix: Walk or drive the actual route power lines will follow. Measure that.

3. Forgetting About Transformer

The mistake: Planning large home with shop, getting base quote

The reality: 400-amp service + shop = new transformer needed (+$5,000-$8,000)

The fix: Tell utility company exact service needs upfront

4. Not Asking About Allowances

The mistake: Accepting first quote without questions

The reality: Utility offers $2,000 allowance you didn't know about

The fix: Specifically ask: "What allowances or credits are available?"

5. Choosing Underground Without Cost Analysis

The mistake: "Underground looks better, we'll just do that"

The reality: Underground costs $45,000 vs. $18,000 overhead

The fix: Get quotes for both. Decide if aesthetics worth $27,000 extra.

💡 How to Minimize Electric Hookup Costs

1. Position Building Closer to Road

Strategy: Place building site closer to existing power lines

Savings example:

800 feet from road: $25,000
400 feet from road: $12,000
Saved: $13,000

Tradeoff: Less privacy, more road noise

Best for: Properties where building location is flexible

2. Share Costs with Neighbors

Strategy: If multiple properties need power, split line extension costs

Example:

Your property: 1,200 feet from power
Neighbor's property: 1,500 feet (extends past yours)
Total cost: $45,000
Split 50/50: You pay $22,500 (saved $22,500)

Requirements:

Cooperative neighbors
Easement agreements
Shared maintenance understanding

3. Time Your Connection

Strategy: Ask utility company about scheduled work in your area

Opportunity: Utility upgrading lines nearby = potential reduced costs

Example: Utility replacing poles on your road → Ask about extending while equipment already mobilized

Savings: May reduce mobilization fees ($2,000-$5,000)

4. Provide Access & Clearing

Strategy: Clear route for utility company yourself

Savings: $1,000 - $5,000 in clearing costs

What to do:

Clear trees along route
Grade access if needed
Remove obstacles
Create equipment access

Caution: Get utility approval before clearing - don't want to clear wrong path

5. Consider Temporary Power

Strategy: Install temporary power during construction, permanent later

When it makes sense:

Building site very far from road (1,500+ feet)
Can build closer temporary structure first
Multi-phase development

Approach:

Get temporary power to construction site
Build guest house/garage closer to road first
Later extend to main house from that point

6. Explore Alternative Energy

Strategy: If hookup costs exceed $30,000-$40,000, consider off-grid

Solar + battery system: $25,000 - $50,000

No monthly bills
No utility dependency
May be cheaper than very long line extensions

Backup generator: $5,000 - $15,000

Supplement solar
Handle heavy loads

Best for: Very remote properties where line extension exceeds $40,000

✅ Electric Hookup Checklist

Before Making Land Offer

After Quote Received

🎯 Get Your Property-Specific Electric Cost Estimate

Distance is just one factor. Terrain, obstacles, and utility policies all affect your final cost.

Our Land Development Cost Analyzer provides:

✅ Distance-based cost calculator for your property location
✅ Overhead vs. underground comparison with pros/cons
✅ Transformer requirement assessment based on planned use
✅ Terrain impact analysis (slopes, wetlands, rocky areas)
✅ Utility company policy guide for your area
✅ Complete development cost summary including all utilities

Analyze Your Land Now →

Know your electric costs before making an offer. Budget accurately.

🔗 Related Land Development Guides

Comprehensive Overview:

Complete Guide to Land Development Costs in 2026

Other Utilities:

Site Development:

Final Thoughts: Measure Twice, Buy Once

Electric hookup costs can quietly destroy your land budget. The difference between 300 feet and 800 feet is often $15,000-$20,000.

Three critical rules:

Get utility quote BEFORE buying - Make it a contingency
Measure actual route - Not straight-line distance
Ask about every possible allowance - Utilities won't volunteer this information

Most importantly: Factor electric costs into your land value calculation.

A $40,000 lot that's 200 feet from power (hookup: $6,000) = $46,000 total
A $30,000 lot that's 1,000 feet from power (hookup: $35,000) = $65,000 total

The "cheaper" land isn't cheaper at all.

Get quotes. Measure distance. Budget accurately.

Get Your Land Analysis →

Every foot costs money. Know the distance before you buy.

Last updated: November 2025. Electric hookup costs vary significantly by utility company, terrain, and local regulations. Always obtain written quotes from your specific utility provider before purchasing land.