Is Three Phase Electricity More Expensive?

Terms like ‘Single Phase’ and ‘Three Phase’ are alien to most homeowners. In fact, most homeowners do not actually care to know whether their home uses single-phase or three-phase power. Even if they did, they don’t have a choice in the matter. In many cases, they have to make do with the setup the authorities have decided to implement in their area.

Is three-phase electricity more expensive? Three-phase electricity is more expensive but only during the installation stage. In the long run, it is the cheaper option.

Of course, you cannot choose between these two options without first understanding the attributes that set them apart. This is the only way to identify the setup that will suit your situation best. The cost is not the only factor that separates single-phase from three-phase electricity.

What Sets Single-Phase Electricity Apart From Three-Phase Electricity?

Several elements differentiate single-phase power from three-phase power, including:

1). Operation

As you might have guessed, single-phase power came before three-phase power. This is one of the reasons why it is so prominent. The setup consists of a current that runs forward through a circuit before reversing. It looks like a sine wave.

The problem with a single-phase setup is that it passes through the zero axes twice per cycle. At that point, there is no voltageTripplite compares single-phase electricity to a person paddling in a canoe. The canoe moves forward whenever he places the paddle into the water and executes a stroke.

But there are moments in between the strokes when the paddle leaves the water. During those moments, the person isn’t supplying any power to the canoe. Put simply, single-phase electricity introduces small inconsistencies to the power supply.

Three-phase electricity doesn’t have this limitation. According to Rahi, the setup uses three alternating currents instead of one. You have three different wave cycles that overlap to ensure that the power supply is consistent.

Using the previous example, rather than a single person paddling in a canoe, you have three people. As a result, you always have at least one paddle in the water, executing a stroke. This allows the canoe to move consistently because the power propelling it forward is constant.

2). Physical Configuration

If your home has single-phase power, DC Power Co expects to see two wires running to your house. One wire is the active wire. It carries the electricity. The other wire is neutral. A three-phase setup has four wires. Three wires are active.

3). Application

Single-phase electricity is primarily found in small businesses and residential settings. It is compatible with situations that do not require a lot of power. This is the reason why so many homes use single-phase power.

The inconsistencies in the power supply are unlikely to affect the operations of basic appliances and electronic devices such as toasters and computers. Three-phase electricity is normally found in industrial settings.

Because it uses three conductors, a three-phase setup can transmit a lot more power, and it does this using fewer wires, which makes the configuration compatible with power-hungry settings such as data centers. Some homes use three-phase electricity because their power demands are higher than normal.

4). Identification

If you want to know whether you have single or three-phase power, look at the switchboard. A single-phase setup has a single switch with a slim design. A three-phase setup has three switches that have been combined to look like one switch.

ITA Electrical also encourages you to look at the fuses in the fuse box. A three-phase setup has three fuses. A single-phase setup has one fuse.

Is Three Phase Electricity More Expensive?

Three-phase electricity is more expensive but only during the installation stage. The hardware you need to configure three-phase power is expensive. For all its limitations, single-phase power is less complex in its design.

This affects the cost. You require fewer components. But as was mentioned before, in the long run, three-phase power is more cost-effective. Consider the following:

1). The setup is more reliable. Because it has three conductors that deliver consistent power levels, settings with three-phase electricity are less vulnerable to outages. You can minimize power failures, extending the life of your appliances.

2). Even though they transmit more power, three-phase systems use less copper. The same goes for aluminum. The setup requires smaller wiring.

3). Three-phase systems use smaller motors. Because the power they supply is consistent, you don’t have to include starter capacitors in your design, hence the small motor.

4). Three-phase systems are more efficient. You can blame this on their constant load. They will enhance productivity, especially in industrial settings. Because three-phase systems are not as prone to outages, you don’t have to worry about annoying interruptions.

Ultimately, three-phase power is only expensive in the beginning. Once it is in place, it becomes the cheaper option. The expenses a homeowner with a single-phase setup can expect to encounter once they decide to switch to three-phase power will depend on the converter they have chosen to use.

Static converters are the most affordable option but they require a lot more precision. Rotary converters have heftier price tags but they are essential for businesses that use a lot of heavy equipment.

3 phase vs single phase power cost

The cost of 3 phase power and single-phase power is almost the same. The reason for the same is the power consumption will not vary at all.

However, there are some cases in which 3 phase power might cost you more than single-phase power.

I will cover these cases below.

1. Tariff categorization:

Many utility providers provide you with a 3 phase power supply line only if you go with commercial tariffs. It means that if you want to make use of 3 phase power supply, you will have to 1st recategorize your Power line as commercial.

In this case, the per-unit cost will often be on the higher side.

The recapitalization might have another advantage as well. Most utility providers offer priority support to commercial lines. However, since you are paying extra for the same, the benefit is well justified.

2. Upgradation cost:

Many utility providers might charge you extra for upgradation when it comes to 3 phase power supply.

The good news is that the cost is anywhere between $ 4-$ 8 per foot. The footage depends on the distance of your home from the nearest substation or 3 phase power line. It is a one-time charge.

The utility company has to get your line from the nearest 3 phase substation or the nearest 3 phase line. That is why it will likely have to install a new line.

The fact that this is a one-time cost ensures that you will not have to worry about spending a lot when you switch from single-phase power to three-phase power.

3. Minimum utilization charge:

Many utility companies are ready to provide three-phase power in the hopes that the line’s utilization will be on the higher side. Since they often provide three-phase power to commercial units and establishments, they charge a minimum monthly fee if you cross a specific power usage threshold.

The problem is, if you’re installing a three-phase line in your home, you might not have that high power consumption. In that case, you will have to incur the monthly fee as well.

The exact monthly fee and whether it will be levied or not depend on the utility provider you have.

In most cases, however, the fee can vary from $ 20-$ 40 per month.

However, if you’re going with the utility provider which uses solar energy, most of them do not charge you the minimum utilization charge. That is because they are always on the lookout for bulk customers. Three-phase power line users are generally regarded as bulk customers. In that case, you will not have to pay any monthly utilization fee.

As you can see, this charge may vary from one utility provider to another.

So, 3 phase vs single phase power cost indicates that the cost is almost the same. The other associated costs are incurred while switching from single-phase power to three-phase power, which increases the cost. You have to keep these extra costs in mind and after that make the switch. It will ensure that you choose the right utility provider for three-phase power and one with lower switching costs.

3 Phase vs Single Phase Electricity Cost Per Unit

For Commercial Service

Power <15 kWService ChargeEnergy Charge
Single phase$24.25 per month$0.103 kWH
Three phase$24.25 per month$0.103 kWH

For Small General Service

Power <15 to 100 kWService ChargeEnergy ChargeDemand Charge
Single phase$45 per month$0.0891 kWH for 0-2,500 kWh

$0.0791 for Excess kWh
$3.00 for 0-8 kW
$8.00 for Excess kWh
Three phase$55 per month$0.0891 for 0-2,500 kWh
$0.0791 for Excess kWh
$3.00 for 0-8 kW

$8.00 for Excess kWh

For Medium Service – Three phase

Power 100 to 1000 kWService ChargeEnergy ChargeDemand Charge
Three phase$75 per month$0.0550 All kWH$15.50 All kWH

For Large Service – Three phase

Power 1000 to 2500kWService ChargeEnergy ChargeDemand Charge
Three phase$120 per month$0.0546 All kWH$13.75 All kWH
Power > 2500kWService ChargeEnergy ChargeDemand Charge
Three phase$120 per month$0.0852 All kWH$12.75 All kWH


Three-phase electricity is found in settings with heavy electrical requirements such as data centers and power grids. It is also compatible with large businesses.

Single-phase electricity has a less complicated design. Because it delivers less power and the supply is inconsistent, it is normally assigned to homes. Their power requirements are low and the average appliance in the average home can survive these inconsistencies.

However, if your home has heavy power demands, you can always convert your single-phase setup into a three-phase setup. The cost of installing three-phase power is quite high. However, you will save money in the long run because the configuration is far more efficient.

People in manufacturing will happily suffer the exorbitant cost of installing three-phase power because they know that the smooth and consistent power supply with which it is associated will enable them to save money in the long run.

They can take advantage of the smaller motors, increased productivity, and smaller wiring, not to mention the improved efficiency. Three-phase power is also more efficient than dual-phase power.

Leave a Reply

Your email address will not be published. Required fields are marked *

Recent Posts