Should I Invest In an Electrical Panel Upgrade?

Investing in an electrical panel upgrade isn’t something homeowners often think about. Breaker panels can last 40 or 50 years. However, advancements in electrical technology have increased power requirements. Most older panels can’t handle the amperage rating of modern appliances. Therefore, a panel upgrade can be a wise investment that ensures your home is safe, functional, and energy efficient.

How Does an Electrical Panel Work?

As electricity from the power grid enters your home, it passes through the main breaker in the service panel. The main breaker distributes power to all the other circuit breakers. From there, electricity flows to appliances, electronics, and devices when you turn them on. 

A residential electrical panel isn’t complicated but is designed with a rated capacity. Exceeding the panel’s or a breaker’s capacity can cause an overload, short circuit, or an electrical fire. Circuit breakers are designed to trip or switch off when the current flowing through them exceeds their design specifications. But unlike fuses, they don’t need to be replaced; you can flip a tripped breaker off and back on again to restore power.

Benefits of an Electrical Panel Upgrade

Upgrading an electrical panel isn’t a simple task. You need an experienced electrician and the update can be costly. According to Angi, the average cost of a panel upgrade is $1,600, but depending on the panel type and other factors, it can be as high as $4,000. But an upgrade can be very beneficial. The advantages of installing a new service panel are as follows:

• Increased Electrical Load: An older 60-amp or even a 100-amp panel may not support all your devices and appliances. Most residential electrical panel updates entail installing at least a 200-amp unit, allowing you to add new appliances and operate various types of electronics.

• Improved Safety: Older panels are susceptible to corrosion and wear that make them unsafe to operate. Those that use fuses instead of breakers are especially risky. They don’t support anywhere near the capacity required by current electrical codes and are a fire hazard.

• Energy Efficiency: Newer electrical panels work more efficiently and support other energy-efficient upgrades such as EV chargers, heat pumps, and more. Some models are compatible with residential solar panel systems. Lower utility bills can justify the upfront cost of an electrical panel upgrade.

• Higher Home Resale Value: If your home can handle modern electrical demands, a potential buyer is more likely to invest in it. Not having to perform electrical upgrades after the purchase is an incentive to consider a higher selling price.

• Federal Tax Credits Are Available: The federal government has incentives for you to improve your electrical system. You can claim 30% of the installation cost (up to $600). Therefore, a panel upgrade can reduce your tax bill. Be sure to save all receipts and related documentation and use IRS Form 5695 to claim a Residential Energy Credit for that tax year.

Increased energy efficiency and lower electric bills aren’t the only financial incentives to consider upgrading your electrical panel. Your investment can also:

• Yield a Significant Return on Investment: Typically, homeowners can recoup about half the cost of their new electrical panel through increased home resale value.

• Reduce Repair and Maintenance Costs: An older panel can cost you money in frequent repairs. If it’s properly maintained, a new panel avoids constant repairs and eliminates power fluctuations that can damage appliances and devices.

• Qualify You for a Lower Insurance Premium: Insurance premiums and other terms are determined by the safety of your home. Since a panel upgrade improves safety, it can help lower your insurance premium. It reduces the risk of an electrical fire and other hazards.

Signs Your Electrical Panel Is Out of Date

You should invest in an electrical panel upgrade if any of the following apply:

• Your Home Was Built Over 40 Years Ago: If your home was built in the 1980s or earlier and you still have the original panel, have a professional inspect it to determine whether it’s safe or should be replaced.

• The Old Panel Is No Longer Up to Code: Replace your electrical panel if it doesn’t meet national or local electrical codes. In this case, it’s a safety hazard and you run the risk of fines and other penalties. No one wants to have an unreliable breaker panel.

• You’re Remodeling Your Home: Updating parts of your electrical system will likely increase capacity requirements. A home remodel often involves adding electronics or entire new sections or rooms. Replacing the panel, junction boxes, and old wiring improves the safety of your entire electrical system.

• New Appliances Are Installed: Electrical issues in older homes present challenges when adding appliances. If you’re adding a dishwasher to the kitchen, a freezer to the basement, or a jacuzzi or hot tub, you’ll need more electrical power. A modern panel can provide the amperage to support all of these.

• Circuit Breakers Trip Frequently: It’s normal for a breaker to trip when there’s an overload. But if circuit breakers constantly trip and must be reset, there may be an issue that requires replacing the electrical panel.

• You Still Have a Fuse Panel: Having a fuse panel instead of a breaker panel is a serious hazard. Fuse panels were used in homes built before 1960. They lack the safety features of breakers and cannot handle the electrical loads in modern homes.

• Lights Are Always Flickering: Too high a power draw in a circuit can cause lights to dim or flicker when you use an appliance. Adding an extra circuit can help if your electrical panel has the capacity. However, if the panel is several decades old, find an electrician near you to replace it.

• The Panel Is Worn or Damaged: Rust, corrosion, water damage, and other issues mean your panel is unsafe to use. The system is a fire hazard. Call an electrician right away to perform repairs or replace the electrical panel.

• You Rely on Power Strips: If you have too few electrical outlets, chances are your breaker panel can’t handle the capacity you need. Unless your existing panel can support additional circuits for new outlets, it’s time to invest in an electrical panel upgrade.

• A Burning Plastic or Wood Odor: If a burning smell originates from your electrical panel, a circuit breaker may have failed. Burning plastic can mean wire insulation is melting. A burning wood smell can mean the damage has spread to the walls or building frame. If the smell is especially strong, evacuate your home, as a fire may be in progress. 

• The Panel Is Hot or Warm: A circuit breaker should trip if it starts to overheat. But if a breaker or the panel is warm or hot to the touch, it is malfunctioning. Call your local electrical contractor to evaluate the issue and determine if an upgrade is required.

• Outlets Spark When You Plug Something In: If one or more outlets spark every time you plug something in, the problem could be with your electrical system. It may not be isolated to a single outlet or wire. Hire an electrician as soon as possible.

Frequently Asked Questions

When’s the Best Time to Update My Electrical Panel?

Don’t hesitate to call an electrician if you experience the warning signs above. A malfunctioning breaker panel can do more damage to your electrical system or cause a house fire. You should also consider an upgrade when renovating your home. It can accommodate any increases in power demand.

Can I Perform an Electrical Panel Upgrade Myself?

A panel upgrade must be performed by a skilled electrician. Working with high levels of electricity is dangerous. One mistake can result in severe injury or death. Improper installation can leave your home vulnerable to a fire at any time. 

Therefore, hire a professional electrician experienced with local codes and regulations, planning, and following all safety precautions. They are equipped to inspect your existing system, evaluate your requirements, and install a new breaker box, circuit breakers, and wiring. After installation, they can test the equipment to ensure it works properly.

Do Electrical Panel Upgrades Require Permits?

Yes. By law, permits must be obtained by a licensed professional and require an inspection. Ignoring permit laws not only puts your safety at risk. It can also result in fines and other expenses like redoing unapproved or non-compliant work. Therefore, research or ask about permitting requirements before beginning any electrical project.

Contact Kliemann Brothers

A trusted residential electrical services company in Tacoma, Kliemann Brothers can diagnose any electrical problem and complete any repair. Our experienced electricians also specialize in installation, whether you need a new circuit, a whole-house surge suppression system, a generator, new lighting, or an electrical panel upgrade. We can meet all of your home’s electrical needs. To find an electrician near you, call (253) 201-8498 or request service online.