Smart Electrical Panels: What They Are and Who Needs One

Key Points of This Article:

• Smart electrical panels allow homeowners to monitor electricity usage in real time, helping identify which appliances and systems use the most energy.  
• Unlike traditional breaker boxes, smart electrical panels can offer features like remote circuit control, energy tracking, backup power prioritization, and alerts for unusual electrical activity.  
• While installation costs typically range from $2,000 to $5,000+ depending on the project, smart electrical panels can help homeowners better manage energy use, support modern home technology, and identify potential opportunities to reduce electricity costs over time. 

Many homeowners do not think about their electrical panel until they add something new to the home, like an EV charger, backup generator, or additional appliances, and suddenly their electrical system feels stretched too thin. 

As homes use more electricity, some homeowners look for better ways to manage energy use and avoid overloaded systems. Smart electrical panels are becoming part of that conversation as more homes add high-demand appliances and newer energy technology. 

This guide explains what smart electrical panels are, how they work, how much they cost, and whether they are actually worth it for your home and energy needs. 

What Is a Smart Electrical Panel? 

A smart electrical panel is an upgraded breaker panel that helps homeowners monitor and manage how electricity is used throughout the home in real time. 

Like a traditional electrical panel, smart electrical panels are usually installed on a wall in a garage, basement, utility room, or outside area where the home's main electrical system is located.  

It looks similar to a standard breaker box, but it includes additional smart technology that helps homeowners track and manage electricity use more closely. 

Think of it like a smart thermostat, but for your home's entire electrical system. Instead of only controlling heating and cooling, a smart electrical panel helps homeowners understand how electricity is being used across appliances, rooms, and major systems throughout the house. 

A smart electrical panel gives homeowners more visibility into how the electricity in their home is being used and can support newer energy technologies that many modern homes have. 

How Do Smart Electrical Panels Work? 

Smart electrical panels work by tracking how electricity is used throughout the home and helping homeowners better manage high-energy appliances and modern electrical systems. 

Here's how they track your energy use: 

Electricity first enters the home through the electrical panel, just like it would with a traditional breaker box. The difference is that a smart electrical panel can also monitor how much electricity different circuits are using throughout the day. 

According to Qmerit, these smart electrical panels have built-in sensors that track electricity use from different parts of the home, and can track: 

• Heating and cooling systems  

• Kitchen appliances  

• Water heaters  

• EV chargers  

• Laundry equipment  

• Other major appliances throughout the home  

Instead of only seeing one total electricity number at the end of the month, homeowners can download and use mobile apps or dashboards, such as the SPAN Home App or My Leviton app to get a clearer picture of where electricity is being used throughout the home, all because of their smart electrical panel. 

Depending on the smart electrical panel system, these types of panels allow homeowners to: 

• Turn certain circuits on or off remotely  

• Monitor electricity use throughout the day  

• Receive alerts about unusual energy activity  

• Prioritize important appliances during a power outage 

Overall, smart electrical panels are designed to give homeowners more visibility into how electricity is being used so they can better manage growing energy needs throughout the home. 

Smart electrical panels can also work alongside solar panels, backup batteries, and generators.  

During a power outage, some systems can help prioritize important appliances like refrigerators, heating systems, medical equipment, or internet routers so backup power lasts longer. 

Benefits of a Smart Electrical Panel: Features That Help Homeowners Manage Energy Use More Efficiently 

Smart electrical panels include features that help homeowners better understand how electricity is being used, manage growing energy demand, and support modern home energy systems more efficiently. 

Unlike a traditional breaker box that mainly distributes electricity, smart electrical panels provide homeowners with more visibility and control over how electricity moves throughout the home. 

Below are some of the most common smart electrical panel features and how they may benefit homeowners in everyday situations. 

Real-Time Energy Monitoring That Helps Homeowners Understand Their Electricity Use 

Smart electrical panels can track how much electricity different parts of the home are using in real time. This helps homeowners better understand which appliances or systems use the most energy throughout the day and where they can potentially cut back. 

This visibility can make it easier to identify areas where energy use may be higher than normal and help homeowners make more informed decisions about managing electricity use throughout the home. 

Remote Circuit Control Gives Homeowners More Flexibility 

Smart electrical panels allow homeowners to turn individual circuits on or off using a mobile app or dashboard. 

This feature can provide added convenience when managing parts of the home remotely. For example, homeowners may be able to turn off outdoor lighting, disconnect unused appliances, or shut off power to certain areas during severe weather or extended travel. 

In some homes, remote circuit control may also help homeowners manage electricity use more efficiently by reducing unnecessary power use from devices or appliances that are not needed. And turning off unused appliances can save you as much as $50–$100 per year.  

Load Management Helps Reduce Strain on the Home's Electrical System 

Modern homes often use more electricity than older homes were originally designed to handle. Large appliances like EV chargers, HVAC systems, electric dryers, water heaters, and hot tubs can place additional demand on the electrical system, especially when running at the same time. 

Smart electrical panels can automatically reduce power to non-essential appliances when electricity demand becomes too high or when backup power is limited. 

 This helps reserve available power for more important appliances and systems without requiring homeowners to manually turn circuits on or off. 

Backup Power Prioritization Can Help Generators and Batteries Last Longer 

When connected to a backup generator or battery storage system, some smart electrical panels can prioritize essential appliances during a power outage. 

Instead of sending backup power to every circuit in the home, the panel can focus electricity on important systems like: 

• Refrigerators  

• Heating equipment  

• Internet routers  

• Medical devices  

• Essential lighting  

This can help backup power systems last longer during extended outages, especially during severe Midwest storms or winter weather events when homeowners may rely on backup power for longer periods of time. 

Enhanced Safety Features Can Help Homeowners Detect Electrical Problems Earlier 

Smart electrical panels can alert homeowners to unusual electrical activity, including overheating circuits or sudden spikes in electricity use. 

Traditional breaker panels mainly respond after a problem occurs by tripping a breaker. Some smart systems can provide earlier warnings that may help homeowners identify electrical concerns before they become more serious. 

Who Should Consider a Smart Electrical Panel? 

If your home is using more electricity than it used to, adding new high-demand appliances, or showing signs of an aging electrical system, a smart electrical panel may be worth considering. 

Not every home needs a smart electrical panel. However, some households may benefit from the added visibility and control. 

Below are some common situations where a smart electrical panel may make sense. 

If You Have Rising Electricity Bills 

If your electricity bills have been increasing and you are not sure why, a smart electrical panel may help you better understand where electricity is being used throughout the home. 

Some systems can help identify appliances or equipment that may be using more electricity than expected, such as older refrigerators, basement freezers, HVAC systems, or electric water heaters. This visibility may help you spot areas where energy use is higher than normal. 

If You Are Adding an EV Charger 

Depending on your model, charging an electric vehicle at home can add anywhere from 62-212 kWh to your monthly electricity bill. This can place significant demand on a home's electrical system, especially in older homes with limited electrical capacity. 

Some smart electrical panels can help manage electricity demand by balancing how power is distributed across large appliances and charging equipment.  

Some systems may also support higher electrical capacity than older traditional panels, which can help reduce strain on the electrical system when EV charging happens alongside other high-energy appliances. 

If Your Home Has Solar Panels or Battery Storage 

Some smart electrical panels can work with solar panels and battery storage systems to help homeowners better track and manage home energy use.  

Depending on the system, homeowners may be able to monitor how much solar energy the home is producing, how much electricity the home is using, and when electricity is being pulled from the grid through their smart panel system.  

If Your Electrical Panel Is Showing Signs of Wear or Limited Capacity 

Some electrical panels may struggle to support newer appliances and growing electricity demands. 

If your home shows any of these signs, it may be a good idea to have the electrical system inspected before adding major appliances or new energy systems. In some homes, a smart electrical panel upgrade may help provide better visibility into electricity use and help manage growing energy demand more efficiently. 

If You Use or Plan To Install a Backup Generator 

If you use or plan to install a backup generator or battery system, a smart electrical panel may help manage backup power more efficiently during an outage. 

Some smart panels can prioritize important circuits instead of sending electricity to the entire home at once. This can help backup systems keep essential appliances like refrigerators, heating systems, medical equipment, and internet routers running longer during severe weather or extended outages. 

Can Smart Electrical Panels Help Lower Electricity Bills and Manage Home Energy Use? 

Smart electrical panels could save homeowners between 5% and 20% on annual electricity bills. 

Smart electrical panels can help homeowners better manage electricity use by showing where energy is being used throughout the home and helping identify appliances or systems that may be increasing electricity costs. 

With this energy insight, homeowners can adjust their usage patterns, which can lower their electricity bill over time. 

For example, a homeowner may notice that their heating and cooling system, electric water heater, or clothes dryer is using more electricity than expected.  

If one major appliance or system uses an extra 100 to 150 kilowatt-hours (kWh) per month, it could add roughly $18 to $27 to a monthly electricity bill based on the average residential electricity rate of 17.65 cents per kWh as of February 2026 from the U.S. Energy Information Administration (EIA). 

While savings aren't always guaranteed, smart electrical panels are most useful for helping homeowners better understand how everyday energy habits and can identify areas for potential energy savings over time. It's up to the homeowner to take advantage of these savings opportunities to see a real impact on your bill. 

How Much Does a Smart Electrical Panel Installation Cost? 

Smart electrical panel installation costs typically range from about $1,000 to $5,000 for most upgrades, while larger electrical service upgrades may cost between $5,000 and $30,000 nationwide depending on the home and electrical system, according to the data from Caudill's. 

The total cost can vary based on: 

• The age of the home  

• Existing electrical capacity  

• Whether the panel needs to be relocated  

• The condition of the wiring  

• Permit and inspection requirements  

• Whether the home is adding major upgrades like EV chargers, solar panels, or backup batteries  

Here is a general breakdown of common smart electrical panel installation costs in the Midwest:

Installation costs can vary depending on labor rates, permitting requirements, the condition of the home's electrical system, and the complexity of the project.  

However, older homes with outdated wiring or limited electrical capacity may still need additional upgrades before a smart electrical panel can be installed safely. 

Smart Electrical Panel Installation: What Homeowners Should Know 

Installing a smart electrical panel usually involves evaluating the home's current electrical system and making sure it can safely support modern energy needs and high-demand appliances. 

While the installation process may vary from home to home, most smart panel installation projects follow a similar step-by-step process: 

• Step 1: The Home's Electrical System Is Evaluated: A licensed electrician usually inspects the home's current electrical panel, wiring, and overall electrical capacity to determine whether additional upgrades may be needed before installation.  

• Step 2: The Right Smart Panel and Electrical Capacity Are Chosen: The installer helps determine which smart electrical panel best fits the home's energy needs, future upgrades, and existing electrical setup.  

• Step 3: Power Is Temporarily Shut Off During Installation: The home's power is usually turned off while the old panel is removed and the new smart electrical panel is installed safely.  

• Step 4: The System Is Connected and Tested: Once installed, the panel is tested to make sure it is operating properly and safely. Some systems may also connect to a mobile app for energy monitoring and circuit management.  

• Step 5: Final Safety Checks and Inspections Are Completed: Permits and inspections may be required to confirm the installation meets local electrical and safety codes before the system is fully approved for use. 

For that reason, smart electrical panel installations should always be handled by a licensed electrician who can safely evaluate the home's electrical system and ensure the panel is installed correctly. 

Are Smart Electrical Panels Worth It? 

Smart electrical panels may be worth it for some homes with growing electricity demands, newer energy upgrades, or older electrical systems that need better energy management.  

In some situations, a standard electrical panel upgrade may be enough to support a home's energy needs without adding smart features. The right choice often depends on your home's electrical capacity, future upgrade plans, and whether you want more visibility into how electricity is being used throughout the home. 

Below is a closer look at when a smart electrical panel may be worth considering and when a traditional panel upgrade may make more sense. 

A Smart Electrical Panel May Be Worth It If… 

A smart electrical panel may make sense if your home is adding new high-demand equipment or if you want more visibility into how electricity is being used throughout the home. 

If you are: 

• Installing an EV charger  

• Planning to add solar panels or battery storage  

• Experiencing frequent electrical limitations or overloaded circuits  

• Wanting better visibility into electricity use and large appliances  

• Planning future home energy upgrades  

• Using backup generators or battery systems during outages  

A smart panel upgrade is worth it. 

A Smart Electrical Panel May Not Be Necessary If… 

Not every home needs a smart electrical panel. In some situations, a traditional panel upgrade may provide enough electrical capacity without adding smart features. 

A smart electrical panel may not be necessary if: 

• Your current electrical panel is newer and working properly  

• Your home has relatively low electricity demand  

• You are not planning major energy upgrades  

• You mainly want lower electricity bills without needing detailed energy tracking  

• Your current panel already has enough capacity for your household needs  

For some homes, improving insulation, replacing older appliances, or upgrading heating and cooling equipment may have a bigger impact on energy costs than installing a smart electrical panel. 

FAQs 

How Do Smart Electrical Panels and Solar Work Together? 

Smart electrical panels can help manage how solar energy is distributed throughout the home and monitor electricity use during periods of high demand or limited solar production. 

How Do Smart Electrical Panels Work With Energy Storage? 

Smart electrical panels can work with home battery systems to help prioritize important appliances and manage backup power during outages. 

Do Smart Electrical Panels Work During Power Outages? 

Some smart electrical panels can continue managing backup power during outages when connected to generators or battery storage systems. 

Are Smart Electrical Panels Safe? 

Smart electrical panels are generally safe when properly installed and inspected by a licensed electrician according to local electrical codes. 

How Long Does a Smart Electrical Panel Last? 

A smart electrical panel may last 25 to 40 years depending on the quality of the system, electrical demand, maintenance, and installation conditions. 

Can I Install a Smart Panel in an Older Home? 

Yes, smart electrical panels can often be installed in older homes, although some homes may require additional electrical upgrades first. 

Smart electrical panels are not necessary for every home, but they can help some households better manage growing electricity use, high-demand appliances, and newer energy systems. The biggest benefit is having more visibility into how electricity is being used so you can make smarter energy decisions over time. 

As homes continue adding more electrical devices and modern technology, understanding how your home uses energy is becoming more important for managing both comfort and electricity costs. Even small changes in how and when electricity is used can make a difference over time. 

And while a smart electrical panel can help you better understand how your home uses electricity, choosing the right energy plan can also play an important role in managing long-term energy costs. Explore Santanna's Unlimited Energy plan to learn more about predictable energy options for your home.