How to Rewire Your Factory to Meet Code Without Going Broke

Assess Your Current Situation

Upgrading an older factory to meet modern electrical code requirements can seem like a daunting task. However, with proper planning and phasing, it can be done without breaking the bank. The first step is to thoroughly assess your current electrical system.

• Hire a qualified electrician to inspect your existing wiring, circuit breakers/fuses, and electrical panels. Have them identify code violations or deficiencies.

• Review your power needs now and for the future. Will you be adding new equipment or production lines? Plan for capacity upgrades.

• Look at your current energy efficiency. Upgrading wiring provides a good opportunity to add things like LED lighting, occupancy sensors, and high-efficiency motors.

• Document the scope of work and have a cost estimate prepared. This will help with budgeting and planning the project phases.

Create a Prioritized Plan for Upgrades

Once you know what needs to be improved, you can create a plan to phase the upgrades over time in a cost-effective manner.

• Address safety issues and code violations first. This includes things like improper wire gauges, lack of grounding, faulty breakers.

• Prioritize upgrades that improve productivity and efficiency next. For example, adding circuits and capacity for new equipment.

• Add energy efficiency upgrades like lighting and motors further down the plan. Tax incentives and rebates often offset costs here.

• Establish a realistic timeline for each phase. List detailed tasks and labor estimates. Factor in potential equipment downtime.

• Get quotes from multiple electrical contractors on the full project scope. Compare costs of completing it all at once versus spreading it out.

Explore Financial Assistance and Tax Incentives

Upgrading manufacturing facilities can qualify for loans, grants, tax credits, and rebates to offset costs. Be sure to investigate available financial incentives.

• Federal, state, and utility companies offer programs to improve energy efficiency and safety. Lighting, HVAC, insulation, and electrical upgrades may qualify.

• Check state and local economic development initiatives. Some offer low-interest loans or tax breaks to help modernize factories.

• Look into commercial property assessed clean energy (PACE) programs. They provide financing for qualifying projects that is paid back via property taxes.

• The federal Investment Tax Credit (ITC) offers a 26% credit for qualified energy efficiency improvements. File the ITC along with your tax return.

• Accelerated depreciation lets you deduct a large portion of upgrade costs from your taxes in the first year.

Utilize Cost-Saving Measures

Beyond financial incentives, some budget-friendly measures can help reduce overall costs:

• Use your existing conduits and wiring infrastructure as much as possible. Retrofitting is cheaper than fully rewiring.

• Install new wiring and circuits incrementally as you replace old equipment. Coordinate upgrades together.

• Seal air leaks throughout the facility to improve insulation. This will reduce heating/cooling costs.

• Schedule upgrades during annual shutdowns or slow periods. Doing electrical work while production is halted saves money.

• Hire experienced local contractors familiar with retrofitting older industrial buildings. Their expertise saves time and headaches.

• Purchase reusable materials like metal conduits. Use lower cost alternatives when possible.

With proper planning and utilization of financial resources, rewiring a factory to modern standards is very feasible without breaking the bank. Safety and efficiency gains offset the project costs over time.