Commercial Well Drilling: Complete Guide for Businesses
Updated February 22, 2026 | 15 min read
Your business needs water—a lot of it. Whether you're running a farm, manufacturing facility, car wash, or large commercial property, municipal water bills can eat into your bottom line. Commercial well drilling offers water independence and potential long-term savings, but it's a significant investment that requires careful planning. This guide covers everything you need to know: costs, permits, capacity requirements, and whether a commercial well makes sense for your operation.
💼 Commercial vs. Residential Wells
Commercial wells differ from residential wells in several key ways: larger diameter casing (8-12" vs 6"), higher capacity pumps (25-500+ GPM vs 5-20 GPM), more complex permitting, and significantly higher costs. Planning is critical.
Commercial Well Drilling Costs
Commercial well drilling is a significant investment, but costs vary dramatically based on your specific needs:
| Business Type | Typical GPM | Cost Range |
|---|---|---|
| Small commercial (restaurant, retail) | 15-30 GPM | $30,000 - $60,000 |
| Car wash, laundromat | 30-75 GPM | $40,000 - $80,000 |
| Agricultural (crops, orchards) | 50-200 GPM | $50,000 - $120,000 |
| Livestock operations | 25-100 GPM | $40,000 - $90,000 |
| Vineyards, wineries | 50-150 GPM | $60,000 - $120,000 |
| Manufacturing facility | 100-300 GPM | $80,000 - $150,000 |
| Large industrial | 200-500+ GPM | $100,000 - $250,000+ |
Cost Breakdown
Here's where your money goes in a commercial well project:
- Drilling (40-50%): $50-$100+ per foot for commercial diameter wells
- Casing & materials (15-20%): Larger diameter steel casing, screens, grout
- Pump system (15-25%): High-capacity pumps, VFDs, controls
- Electrical (5-10%): Higher voltage service, motor starters, panels
- Permits & engineering (5-10%): Commercial permits, hydrogeological studies
- Storage & distribution (variable): Tanks, booster pumps, piping
Commercial Well Permit Requirements
Commercial wells face stricter permitting than residential wells. In San Diego County, you'll need:
📋 Required Permits & Approvals
- County well permit: $500-$1,500 (required for all wells)
- Water rights review: Verify groundwater extraction rights
- Environmental review: CEQA exemption or evaluation for larger projects
- GSA notification: Groundwater Sustainability Agency approval in SGMA basins
- Health department permit: If water serves employees or public
- Building permit: For pump house or significant infrastructure
Permit timeline: 2-6 months depending on project complexity
SGMA and Groundwater Regulations
California's Sustainable Groundwater Management Act (SGMA) affects commercial wells in designated basins. You may need:
- Registration with local Groundwater Sustainability Agency
- Metering requirements for water extraction
- Potential pumping fees or allocation limits
- Reporting requirements for high-volume users
Check with your local GSA before planning a commercial well project. Learn more in our SGMA regulations guide.
Water Capacity Planning
The most critical factor in commercial well design is accurately estimating your water needs:
Industry Water Usage Guidelines
| Application | Typical Usage | Peak Demand |
|---|---|---|
| Crop irrigation (per acre) | 2-4 acre-feet/year | 15-30 GPM per acre |
| Livestock (per head) | 15-30 gal/day cattle | 2-5 gal/day small animals |
| Vineyard (per acre) | 0.5-1.5 acre-feet/year | 10-20 GPM per acre |
| Car wash (per bay) | 15,000-40,000 gal/month | 20-40 GPM |
| Restaurant (per seat) | 25-50 gal/day | Peak lunch/dinner |
| Office building (per employee) | 15-25 gal/day | Morning, restroom peaks |
Sizing Your Well
Commercial wells are sized for peak demand, not average usage. Consider:
- Peak hourly demand: Maximum water use in any single hour
- Safety factor: Design for 1.25-1.5x expected peak demand
- Future growth: Plan for 10-20 year expansion
- Redundancy: Consider backup pumps or multiple wells
⚠️ Don't Under-Size
Under-sizing a commercial well is expensive to fix later. It's far better to install capacity you'll grow into than to need a second well or upgrades in a few years. Get a professional assessment before finalizing design.
Commercial Well ROI Analysis
Is a commercial well worth the investment? Let's look at the numbers:
💰 Example: 50-Acre Farm
Municipal Water Costs
- Usage: 100 acre-feet/year
- Cost: $500-$800/acre-foot
- Annual: $50,000-$80,000
Well Ownership Costs
- Well installation: $80,000
- Annual electricity: $6,000
- Maintenance: $2,000/year
- Annual cost: $8,000
Payback period: 1.5-2 years | 10-year savings: $340,000-$640,000
Payback Periods by Business Type
- High-water agriculture: 1-3 years
- Car washes: 2-4 years
- Manufacturing: 2-5 years
- Commercial properties: 3-7 years
- Small retail/restaurant: 5-10 years
Commercial Well Types
Drilled Wells (Most Common)
Standard rotary-drilled wells with larger casing for commercial applications:
- 8-12" casing diameter (vs 6" residential)
- Depths from 200-1,000+ feet
- Yields of 25-500+ GPM
- Best for: Most commercial applications
Gravel Pack Wells
Designed for sandy or unconsolidated formations:
- Dual-casing with gravel between
- Prevents sand infiltration
- Higher yields in appropriate geology
- Best for: Alluvial valleys, coastal areas
Multiple Well Systems
For very high demand or redundancy:
- Two or more wells feeding common storage
- Provides backup if one well fails
- Can alternate pumping to extend well life
- Best for: Critical operations, very high demand
Project Timeline
📅 Typical Commercial Well Timeline
- Month 1-2: Site assessment, hydrogeological study, engineering design
- Month 2-4: Permit applications, environmental review
- Month 4-5: Permit approval, contractor scheduling
- Month 5-6: Site preparation, drilling (1-3 weeks for most projects)
- Month 6: Well development, pump testing, yield verification
- Month 6-7: Pump installation, electrical, controls
- Month 7: Final inspection, commissioning, training
Complex projects with CEQA review may take 9-12+ months
Choosing a Commercial Well Driller
Commercial well projects require experienced contractors. Look for:
- Commercial experience: Portfolio of similar projects
- Proper licensing: C-57 Well Drilling Contractor license
- Engineering capability: In-house or partner hydrogeologists
- Equipment capacity: Rigs capable of commercial diameter drilling
- Permit expertise: Experience navigating commercial permit process
- Service capability: Ongoing maintenance and support
Get Your Commercial Well Assessment
Southern California Well Service has drilled commercial wells for farms, ranches, manufacturing facilities, and businesses throughout San Diego and Riverside Counties. We'll assess your site, estimate costs, and help you determine if a commercial well makes sense for your operation.
Free site assessments • Commercial permit expertise • Serving SD & Riverside Counties
Frequently Asked Questions
How much does commercial well drilling cost?
Commercial well drilling typically costs $30,000-$150,000+ depending on depth, diameter, required flow rate (GPM), and pump systems. Small commercial wells cost $30,000-$60,000, agricultural wells average $50,000-$100,000, and industrial high-capacity wells can exceed $150,000.
What permits are required for commercial wells?
Commercial wells require County well permits, water rights assessment, potential environmental review (CEQA), GSA approval in SGMA basins, and health department permits if water serves the public. The permit process typically takes 2-6 months.
How much water can a commercial well produce?
Commercial wells produce 25-500+ GPM depending on design and aquifer. Small commercial needs 25-50 GPM, agricultural operations 50-200 GPM, and industrial facilities 100-500+ GPM. Proper yield testing is essential before committing.
How long does commercial well drilling take?
Commercial well projects take 3-6 months from planning to completion. Permit acquisition takes 1-4 months, drilling 1-3 weeks, pump installation 1-2 weeks, and testing 1-2 weeks. Complex projects can take longer.
Is a commercial well worth the investment?
For high water users, commercial wells often pay for themselves in 2-5 years. A business paying $3,000/month for municipal water saves $36,000/year—recovering a $100,000 well investment in under 3 years.