Improve Your Home's Energy Efficiency By Upgrading the Electrical Panel

Upgrading your home's electrical panel can significantly improve your home's energy efficiency and save you money on utility bills. Here's what you need to know about upgrading your electrical panel for better energy efficiency.

Why Upgrading the Electrical Panel Improves Energy Efficiency

The electrical panel, also known as the breaker box, distributes electricity throughout your home. An outdated electrical panel can contribute to higher energy bills in a few key ways:

Older Panels Are Less Efficient

Older electrical panels are made with less efficient materials and designs. They allow more electricity to leak out as heat, rather than delivering it efficiently to power appliances and devices. Upgrading to a new panel takes advantage of modern, efficient materials and safety features.

Faulty Wiring Reduces Efficiency

Outdated wiring and connections in an old electrical panel can interrupt electrical flow. This forces your system to work harder to deliver electricity, using more energy. Upgrading the panel provides new, properly installed wiring.

Insufficient Circuit Capacity

If your home's energy needs have grown over the years, your old panel may not have enough circuit capacity to handle the demand. This can overload the wires and lead to wasted energy. A new panel provides circuits with sufficient capacity.

No Room for Efficiency Upgrades

If all the circuit breaker slots in your electrical panel are full, there's no room to add circuits for new energy efficient appliances and devices. A panel upgrade provides open slots for expanding capacity.

How an Upgraded Electrical Panel Improves Efficiency

So how exactly does a new panel contribute to energy savings? Here are some key ways:

1. Higher Efficiency Components

New panels include circuit breakers and buses made from modern materials that maximize electrical flow while minimizing energy loss as heat. This translates directly to energy savings.

2. Optimized Wiring

Your electrical panel upgrade will involve running all new wires and connections from the panel throughout your home. This new wiring will have lower resistance and improved safety.

3. Increased Capacity

The new panel will have more circuits to meet your home's needs, as well as room for adding more in the future. This prevents overloads and allows for upgrades like electric vehicle chargers.

4. Smart Home Integration

Newer panels can accommodate smart energy monitoring systems, automated lighting controls, and other smart home technologies that optimize energy efficiency.

5. Safety Features

Advanced safety features like arc fault circuit interrupters (AFCIs) prevent electrical fires and faults, reducing both safety risks and wasted energy from malfunctions.

Costs and Factors When Upgrading Your Electrical Panel

Upgrading your outdated electrical panel is a major improvement that requires hiring a qualified electrician. Here are some key factors to help you plan and budget for it:

• Cost - Expect to pay $1,500 to $3,000 on average for a full panel replacement, including labor and the new panel. Complex installations could cost more.

• Electrical capacity - The new panel must meet your home's electrical needs. Consider expanding capacity for future needs or upgrades.

• Type of panel - Choose between basic circuit breaker, load center, and smart panels with advanced monitoring/control.

• Permits - Your electrician will obtain the proper permits for legal panel replacement in your area.

• Installation time - The actual panel replacement takes 2-3 hours. Total job time depends on labor for rewiring and any repairs needed.

• Disruption - Your home's power will need to be shut off for 2-3 hours during the panel installation. Schedule accordingly.

Bottom Line on Electrical Panel Upgrades

While upgrading your electrical panel requires an upfront investment, it pays off over time through significant energy savings and improved home electrical performance and safety. For optimal efficiency, be sure to upgrade to a panel with sufficient capacity and advanced energy saving capabilities. A new efficient panel makes an excellent platform for additional upgrades like an EV charger, solar system, home battery, or smart home devices.