Our home’s electrical panel is designed to connect to the main power line and distribute the electricity accordingly. Like any home system, the electrical panel will start to show signs of wear and tear over time. If you notice flickering lights or strange smells in your home, these warning signs indicate that something may be wrong with your electrical system and that your electrical panel needs to be upgraded.
Are you not sure if your electrical panel is meeting the growing power demands of your home? Upgrading your home’s main electrical panel can provide many benefits, including ensuring that your home has enough power to power all major appliances and other devices and making your electrical system safer. It can also help solve problems such as circuit breakers that keep tripping, and lights that flicker when you turn on the air conditioner, use the microwave, or other high-powered appliances. According to Forbes, the average cost of a power panel upgrade is $1,800 (as of 2023). However, depending on a variety of factors, you could spend $5,000 or more.
From recognizing the signs that your electrical panel needs an upgrade to understanding electrical panel component costs and how to size and replace your panel, this guide will walk you through everything you need to know about electrical panel upgrades.
1. Cost of components of electrical panel
The electrical panel is a rectangular box mounted on the wall that contains the circuit breakers that control the flow of electricity in your home. It consists of the following components, and I’ll give you the corresponding price ranges.
- Main circuit breaker: Controls power to connected breakers and circuits. Installing a new main breaker box can cost anywhere from $500 to $2,000, but the exact cost depends on the amperage of the equipment and the number of attached circuits.
- Fuse box: The fuse box was a must-have for homes built in the 1960s and earlier, and many homes still use them. However, it needs to be replaced. Replacing a fuse box with a breaker box costs $1,500 to $2,000, but it can be more expensive if the wiring needs a complete overhaul. Replacing an existing fuse box with another similar type of fuse box costs $200 to $2,000.
- Main terminal strip: A main terminal strip is a sub-panel, also called a downstream panel or secondary panel. Main terminal strips cost $400 to $1,750 to install, depending on the amperage and circuit capacity.
- Subpanels: Subpanels provide additional space for circuits beyond the main breaker box, so they can increase the power capacity and load distribution in your home. If the main breaker box is full, add a subpanel to increase the number of available circuits. An integrated circuit and amperage determine how much a subpanel costs to install.
- Circuit breaker switches: As an important safety component of the electrical panel, the circuit breaker switch is responsible for cutting off the power in the event of a fault. Costs for replacing a circuit breaker switch range from $100 to $200. Standard 15- to 20-amp circuit breaker switches cost $5 to $15 each, while the larger 20-amp switches cost $10 to $20 each, depending on the amperage connected.
- Meter box replacement: Installing a new meter can cost between $100 and $650, depending on the type and number of circuits it serves. Parts and labor are included. As the name implies, the meter box contains the meter that measures your home’s electricity usage.
2. When should you replace your electrical panel?
Common electrical problems are often related to a malfunction in your home’s electrical panel, which is connected to your entire electrical system. If a panel fails, damage can spread throughout the house. An electrical panel has a lifespan of 25 to 40 years. That’s a wide range, but if you’re still within that range, look out for the following signs to determine when it’s time to replace or upgrade:
- Frequency reset circuit breakers: It’s normal for the electrical panel to trip when one area of your home consumes too much electricity. When this happens, you must flip the affected breaker to get the power flowing again. This action doesn’t necessarily indicate a problem. But if the breaker is flipping frequently, you may want to call in an electrician to check if there’s a problem with the breaker.
- Not enough outlets: Do you often have to use a power strip to make up for the lack of electrical outlets in your home? This is a sign that your electrical panel may not be able to handle the increase in electrical current. If your panel can accommodate more circuits, an electrician can install more outlets. But if it can’t, replacing the panel is your best option.
- Damaged panel: If you open your electrical panel and see rust or water, avoid touching it and call an electrician immediately. A rusted, broken, or corroded electrical panel means you need to repair or replace your system, as it could be a fire hazard.
- Insufficient power: Insufficient power capacity is another sign that your electrical panel may need an upgrade. If you notice your kitchen overhead lights dim when you use high-powered appliances like the microwave or dishwasher, it could be a sign that a single circuit is drawing more power than it can handle. An electrical panel that feels warm or hot to the touch, or outlets that make humming, hissing, or cracking sounds could also indicate an overloaded system, indicating it may be lacking capacity.
- Seeing sparks when plugging: While it’s not uncommon to see tiny sparks occasionally when plugging something into an outlet, you should be wary of the size and frequency of the sparks. If you notice that your outlet is sparking repeatedly or in large quantities, this is a clear sign that something is wrong with your electrical system. While the cause could be a problem with the wiring or the outlet, it’s best to pay attention to this warning sign and hire an electrician to come take a look.
The biggest advantage of replacing an old electrical panel is safety, especially if you’ve already experienced some warning signs. Installing a new panel will reduce the risk of electrical fires or other safety hazards in your home. After the upgrade, power-consuming devices can more easily work at the same time without tripping the circuit breaker. In addition, some insurance companies offer lower premiums to homeowners who have a new panel installed because it reduces the risk to the home.
3. Determine the size of the electrical panel
Electrical panels are sized in amps. Simply put, this is how much electricity our homes use on a daily basis. Which electrical panel you choose will depend on your home’s current electricity needs and future plans. Here’s a breakdown of some of the most common power strip options to help you understand which one to choose.
1). 125 amp electrical panel
Ideal for smaller homes or properties with modest electrical needs. Not adding any electrical loads and just want to replace the existing panel. Or the original 100 or 125 amp panel has become damaged and needs to be replaced.
2). 200 amp electrical panel
Suitable for properties with higher electrical demand. Not adding any electrical loads at this time, but planning to add in the future, such as adding 1 or 2 appliances and an electric car charger, installing a larger capacity photovoltaic (solar) system, etc.
3). 400 amp electrical panel
For very large homes with high electrical needs, such as installing 2 electric car chargers, and many other appliances in the home, and wanting to “electrify” the entire home’s electrical system. When performing an upgrade of this size, consider the level of labor required and the need for specialized circuit breakers and heavy-duty wiring.
4. Steps to replace electrical panel
If you’re a DIY enthusiast, you may be wondering if you can save some money by upgrading your electrical panel yourself. The answer to this question is a resounding no for several important reasons. The first is that most localities require an electrical permit when upgrading your electrical panel, and this can only be requested by a licensed, certified electrical contractor. If local regulations require an inspection of the new panel, the electrical contractor must schedule the inspection and be present in person, too.
The key to preparing for an electrical panel upgrade is choosing which electrical contractor to do the job. Replacing the electrical box and rewiring parts of your home is a big job, and you need to do your due diligence when choosing a service provider. Here are some common procedures to keep in mind.
1). Consult an electrician
Before beginning any electrical work, consult with a professional electrician. They can inspect the current electrical system in your home and determine the specific upgrades needed for optimal performance and safety. During the consultation, any anticipated future electrical needs should be brought up and discussed so that the electrician can recommend panel upgrades appropriate for future home additions or increased use of electronic equipment.
2). Obtain relevant licenses
The electrician will submit a permit application to their city or municipality based on the information in the plans. The permit application will require specific information about the upgrades and must be approved before any work can begin. Keep in mind that this part of the process is usually handled by the electrician, and we need to make sure that is the case before we are ready to hire them.
3). Duration and complexity
Panel replacement time depends on a variety of factors, and typically takes anywhere from 4 to 8 hours, depending on how many panels are being replaced and how many circuits are in the panel. If there are fewer circuits, it will typically take less time because there are fewer wires to manage.
4). Schedule service disconnection
The power company needs to shut off the electricity to the house before we can officially start upgrading the electrical panel. The electrician will schedule this with the power company. Try to schedule the panel upgrade for a time or day when there will be fewer people at home or when the power outage will be minimal. During this time, the service provider may also inspect, upgrade, or replace the service connection to the house.
5). Install a new power distribution board
While the power is turned off, the electrician will remove the existing panel and any wiring that needs to be replaced. The electrician will install the new panel, circuit breakers, wiring, and other necessary components. If there is other electrical work that needs to be performed, whether related to the upgrade or not, consult with the electrician to see if it makes sense to add that service now or wait until later.
6). Pass the electrical inspection
Only once the panel upgrade passes the final electrical inspection by your city or municipality can the power company reconnect the power to your home. The electrician will meet with the inspector and notify the utility provider to reconnect the power once the inspector signs the permit.
5. Conclusion
Upgrading your home’s electrical panel is an important project that can improve the safety, functionality, and value of your home’s electrical system. If you live in an older home with an outdated electrical system, or if you plan to add new appliances or equipment to your home, upgrading your electrical panel is a must. The most important thing to remember is how dangerous electrical work can be, and you should always hire a professional you trust.