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How Much Does It Cost to Have Three Phase Power Installed in USA?

The answer to the above question will vary based on a lot of factors. These factors include the location, high voltage transmission lines, and the availability of three phase power in the area, or does the power company have to bring it to you via several miles of overhead lines that must be erected or modified.

Note that those costs can result into several thousand dollars, or more. From there, there are commercial tariffs you are expected to be under that would likely penalize you for low usage commonly associated with residential customers. Even if you obtain a rate that would be beneficial to normal business customers, you probably couldn’t get your usage up to be beneficial to you.

However, just note that the cost of upgrading single-phase service to three – phase service is currently $7 to $10 per linear foot, from the nearest existing three – phase power line in the neighbourhood. Installation can be expensive and is most often borne by the customer.

Estimating the cost of a phase converter at $8,000, $7,500 for a second 1,000 – amp transformer, and underground lines that cost around $16,000, just expect to pay around $67,000 to have three – phase run the half – mile to your farm.

It is more or less likely that Nikola Tesla had no idea how much his discovery would affect industry when he first introduced two and three phase alternating currents in the 1880s.

Today, that discovery of rotating magnetic fields which ultimately led to three phase power systems is leveraged commercially around the globe.

For further clarification, three – phase power provides three alternating currents, with three separate electric services. Each leg of alternating current reaches a maximum voltage, only separated by 1/ three of the time in a full cycle.

In other words, the power output of a three – phase power remains to be constant, and it never drops into zero. Note that in a three – phase power supply, it requires four wires, namely one neutral wire and three – conductor wires. These three conductor wires are 120 – degree distant from each other. Also, each AC Power Signal is 1200 out of phase with each other.

Additionally, there are two types of circuit configurations in a three – phase power supply, such as the Delta and the Star. The Delta Configuration requires no neutral wire and only all high voltage systems use it; while, Star Configuration requires a neutral wire and a ground wire.

Benefits of Installing Three Phase Power System

Three phase power systems have proven to be more efficient and safer than their traditional single phase counterparts because they split their total voltage. Alternating currents cyclically. In a single phase power system, currents flow in one direction before reversing, typically at a rate of 60 times a minute.

Howbeit, there are brief moments where there is no voltage running through the current. Note that these moments are brief enough to not affect small household appliances, but they do become noticeable when using larger equipment like big motors. But in a three phase power system, these loops are split up over three cyclical phases, running in alternating directions. By splitting the moments of maximum and minimum voltages, the overall power supply remains constant. Also, below are additional benefits of installing three phase power services.

  1. More Productive

Irrespective of what you do or the industry you’re working in, productivity is always crucial. Efficient power means more productivity and ultimately, more money. With their constant load, three phase systems will keep your machines running longer and you’ll spend less time waiting for them to recharge. They have also proven to be less prone to outages, reducing the amount of time you’d spend regaining momentum and can handle higher power loads.

  1. Energy Efficient

Three phase systems are renowned to be far more streamlined than single or even dual phase systems, which mean they use less power, but produce the same results. This is because they offer more control in terms of how much power is being sent to your equipment, and in some cases, this may allow you to use less equipment. Reducing your equipment and power usage not only lowers your electricity bill but helps the environment too.

  1. Simplified Design

This Tesla’s invention that alternates currents was born out of his discovery of rotating magnetic fields. The three phase power system produces a magnetic field that rotates in a specific direction with constant magnitude, which makes the design of electric motors simpler. Even though higher order phases can do this too, systems lower than three phase power systems are unable to produce the same constant load, eliminate a neutral conductor and offer a specific direction magnetic field.

  1. Less Copper and Aluminium

Note that when compared to single – phase systems, three phase power systems use conductors more efficiently. Have it in mind that three phase systems are able to conduct three times the power of the single phase, by using only half the amount of copper or aluminium as a conductor. Considering the price of these materials, this would mean a considerable saving in the long run. Also note that a three phase system also allows you to reduce the size of your neutral conductor because it isn’t carrying that much current.

  1. Allows for Smaller Motors

Indeed there are many ways three phase power systems allow for the design of smaller motors. Firstly, they need less conducting materials, allowing for wiring to be quite small. The three phase system’s constant power load also eliminates the need for starter capacitors which may take up a place in a motor’s overall design. Another advantage of these smaller motors with their stable power flow is that there would be less vibration and noise from the motor.

  1. Very Reliable

It is their consistent power levels that make them very reliable and trusted. With single – phase systems, the power pulsates and this uneven flow may result in a power failure. This risk is minimized when the power flow is constant. Note that it also minimizes your risk of running too much power through the system, which also causes outages. Fewer power failures will increase the life span of your equipment as they are less likely to be affected by subsequent power surges.


Three phase electrical service from a power company is seamless once installed. There is no need to activate converters or generators and no extra maintenance. The system operates invisibly to power high – horsepower electric motors. Three phase power systems are not only more affordable than single phase systems, they are also safer and more efficient. While they may require an initial cost to start off with, they will pay themselves off in the long run.