Will Upgrading My Breaker Box Reduce My Electric Bill?

Tired of wondering if your breaker box is plotting against your bank account every time your energy bill arrives? Let’s flip the switch on this mystery and explore if upgrading your electrical panel could finally give you a break — and not just the kind that trips the breaker!  

Outdated electrical panels can be a fire hazard or cause frequent breaker trips, making safety a top reason to upgrade. Upgrading can prevent electrical overloads that come from older systems unable to handle the demands of modern appliances. But can upgrading your breaker box reduce your electric bill? Read on for the answer! 

Will upgrading my breaker box reduce my electric bill?  

Yes, upgrading your breaker box can potentially lead to reduced electric bills, but it’s not a direct cause-and-effect relationship.  

A newer and more efficient breaker box can improve energy efficiency simply because newer models are made to handle more. When paired with energy-efficient appliances or renewable energy systems, like solar panels, it’s totally possible you can save money on your electric bill by upgrading your breaker box. 

Upgrading your breaker box also promotes better protection against energy-wasting electrical faults and a newer or upgraded box requires lower maintenance causing fewer electrical issues leading to potentially reduced electric bills. 

Typical cost of electrical panel upgrade  

The typical cost of upgrading your electrical panel costs anywhere from $2,000 – $4,000. This process usually includes the panel itself, labor charges, and any rewiring that’s necessary. 

An electrical panel, also called a breaker box, is the central hub of electricity distribution in your home. It controls the electrical circuits and protects your home from electrical overload. The typical cost of an electrical panel upgrade will vary based on a few factors. These factors include: 

Panel Size and Amperage: The typical cost of an electrical panel upgrade will depend on the size and capacity of the panel you need. For example, upgrading from a 100-amp panel to a 200-amp panel is more expensive. 

Labor Costs: Labor rates can vary significantly by region. Electricians typically charge between $250 and $350 per hour. 

Permits and Inspections: Many jurisdictions require permits and inspections for electrical work, which can add a few hundred dollars to the total cost. 

Type of Panel: The brand and quality of the electrical panel can also affect the price. High-end panels or those with specialized features, like surge protection, can be more costly. 

Panel Location: If you’re opting for a bigger electrical panel, relocating your panel might be needed if your old panel is in a hard-to-reach space. This can drive up the cost of your electrical panel upgrade. 

Why do I need to upgrade my electrical panel?

The benefits of upgrading your electrical panel go beyond reducing your electric bills. If you’re wondering if you really need to upgrade your panel, here are a couple of the most compelling reasons: 

Safety 

Old electrical panels, especially those over 20-30 years old, may not comply with modern safety standards and can overheat, increasing the risk of fire. Upgrading your breaker box can significantly reduce the risk of electrical fires by ensuring proper functionality and circuit protection in modern appliances.  

Outdated panels often struggle to manage today’s energy demands, leading to frequent breaker trips or fuse blowouts leading to safety risks. An upgraded panel ensures that your electrical system can safely handle the increased load, reducing the likelihood of overloading circuits.  

Capacity  

Many older homes were commonly built with 60-100 amp panels, which are inadequate for modern lifestyles that include high-demand appliances like HVAC systems and more appliances. Upgrading to a higher panel that can accommodate home expansions, new appliances, or energy-efficient systems can allow for future upgrades.  

Upgrading your electrical box can help your home handle your family’s energy consumption without compromising the electrical system’s performance.  

Upgrading your electrical box is especially important to EV owners. As electric vehicles (EVs) become more common, homes need upgraded panels to support dedicated EV charging stations, which can require more power than an older breaker box can’t handle. Upgrading the electrical panel ensures there is sufficient capacity for EV charging while supporting other household electrical demands.  

Efficiency  

If you’re looking to install solar panels or other renewable energy sources like wind turbines, your electrical panel needs to be upgraded to integrate these systems. A new panel can help with the seamless flow of energy, ensuring efficiency in handling the energy generated by renewables and preventing power wastage.  

In the same way, upgrading to a new breaker box can increase the energy efficiency of your home as a whole, and with increased efficiency, this can lead to a lower electric bill. 

Smart Home Compatibility  

New panels are better suited to accommodate smart home devices and energy-efficient technologies, allowing for optimized electricity usage throughout the home. These systems work together to manage power more efficiently, potentially leading to reduced energy bills.  

When should I upgrade my breaker box?  

While electrical panels typically last several decades, certain signs indicate that an upgrade may be necessary to meet your home’s electrical demands. It’s especially important to consider an upgrade in your breaker box if you’re planning a renovation or adding new appliances, knowing the signs to upgrade can prevent future problems or unexpected costs. 

Here are some of the most common signs you might need an upgraded breaker box: 

• If you hear sizzling, crackling, or buzzing sounds coming from outlets.  

• Your circuit breaker frequently trips  

• You can’t use more than one appliance at a time without an appliance being unplugged. 

• Devices are slow to charge.  

• Your lights flicker or dim regularly. 

• Your panel is hot to the touch.  

• There’s visible damage or rust on the panel.  

• There are burn marks around the outlets. 

• Your electricity demand increases. 

• Odors are coming from the panel. 

Do I need a permit to upgrade my electrical panel?  

Yes, you typically need a permit to upgrade your electrical box in residential homes. Most local building codes require permits for electrical work to ensure that it meets safety standards and regulations.  

Obtaining a permit allows for an inspection of the work done, which can help prevent hazards related to improper installations. It’s important to check with your local building department or consult a licensed electrician to understand the specific requirements for your area.  

A permit is required even if you’re considering replacing your electrical panel. Don’t attempt to replace your panel yourself; doing so can lead to electrical shock and prolonged electrical problems in your home without professional installation. 

How much does it cost to replace an electrical panel? 

Replacing an electrical panel on average can cost anywhere from $550 to $3,000, but most homeowners pay around $1,300. 

How much you’ll pay for an electrical panel replacement will depend on your model, labor needed, and any rewiring. Keep in mind that a simple replacement will cost less than a full panel upgrade because it typically involves swapping out the existing panel with a similar model without making significant changes to the electrical system.  

Since there’s no need to increase the amperage or reconfigure the circuits, the labor is usually less, and a replacement doesn’t require extensive rewiring which drives down the cost. If you want to upgrade your panel to meet higher electricity demands in your home, it will come at a higher cost. 

How to upgrade your electrical panel  

Upgrading your electrical panel entails replacing an older, lower-capacity panel with a newer one that supports modern and better electrical demands. Older panels were often designed to handle significantly lower electrical loads than today’s households require, so upgrading ensures your home can safely power new appliances and technologies.  

We strongly recommend you don’t attempt to upgrade your electrical panel on your own as this can lead to injury and improper installation if you’re not a professional. Generally, here is how the process of upgrading your electrical panel goes: 

1. Assessing your home’s electrical needs: After you’ve hired an electrician, your hire professional assesses your home and helps you determine the right panel size based on how much electricity your home uses.  
2. Power Shut Off: Before starting the upgrade, your electrician will coordinate with the utility company to temporarily shut off power to your home. 
3. Remove the Old Panel: The existing panel is carefully disconnected and removed. If the new panel will be installed in a different location, some additional rewiring may be necessary. 
4. Installing a new panel: A larger, more modern panel is installed. This includes updated circuit breakers, better grounding, and new safety features. After installation, your electrician will test your panel to ensure everything is working correctly. 
5. Inspection and Power Restoration: Once the new panel is in place, an inspector will verify that the installation meets safety standards. 

Electrical panel upgrade tax credit  

If you’re considering an electrical panel upgrade there is a tax credit available provided by EnergyStar. The overall total limit for an efficiency tax credit in one year is $3,200. This electrical panel upgrade tax credit program is for those who’ve purchased and installed electrical equipment between January 1, 2023, and December 31, 2032. 

Additionally, any electrical equipment that is installed in a manner consistent with the National Electric Code, has a load capacity of not less than 200 amps, or any qualified energy property (heat pump water heater, heat pump, central air conditioner, water heater, furnace or hot water boiler, biomass stove or boiler) qualifies. 

How do I hide an electrical box?

Although electrical boxes are essential to every home for power, let’s be honest, they are not the prettiest sight to see. If you’re limited on space in your home, you don’t want the eyesore of an upgraded electrical box to throw off the look of your home. Here are some of the most clever ways you can hide your electrical box: 

• Furniture Placement: Position furniture such as sofas, bookshelves, or cabinets to conceal the electrical box without blocking access.  

• Decorative Cover: Use a decorative cover or box that can blend in with your decor. These can be found at home improvement stores and are designed to mask electrical boxes while allowing for ventilation and access.  

• Wall Art or Shelving: Install wall art, shelves, or framed pictures that can cover the box while still being accessible.  

• Custom Cabinetry: Build a custom cabinet or enclosure around the electrical box. Ensure it has doors or a removable panel for easy access.  

• Wall Treatments: Paint the box the same color as the wall or apply wallpaper to make it less noticeable, provided it doesn’t obstruct access.  

• Plant Arrangement: If the electrical box is located outdoors or in a garden area, you can use decorative plants or trellises to partially hide it.  

In the end, upgrading your electrical panel isn’t just about ensuring your home meets modern safety standards; it’s also about improving efficiency, accommodating future energy needs, and even potentially saving on energy costs. Upgrading your breaker box can potentially lead to a reduced energy bill with the right panel and installation. 

For homeowners looking to maximize their savings, Santanna Energy Services offers the Unlimited Energy plan, providing a budget-friendly plan for electricity where the supply portion of your bill doesn’t change.** By upgrading your panel and pairing it with an energy plan designed to fit your lifestyle, you can ensure your home is both energy-efficient and cost-effective for years to come.