All About Home Electrical Panels

Understand Electrical Panel Basics and Considerations for Replacement

Between lighting, appliances, and heating and cooling equipment, homes rely on electricity for a significant portion – if not all – of their energy needs.  But unless you’ve recently needed to shut off the power for repairs or installing electric home equipment, you might rarely think about how electricity is managed in your home.

An electrical panel – sometimes called a breaker box or fuse box – acts as a central hub that distributes electricity from the service line coming into your home to feed all parts of the home through circuits and wiring. Unlike other electrical infrastructure like power lines and utility poles, an electrical panel is the property of the homeowner or property owner and not the electric utility. 

If you’re looking to add new electric equipment or appliances to your home, it’s important to determine whether an electric panel upgrade is required. Here’s what homeowners need to know to be prepared for their home improvements.

Confirm Your Electrical Panel Size

New York’s housing stock ranges from new construction to historic properties dating back centuries. Newer homes likely have larger capacity electrical panels (measured in amps) to meet the electricity demand typical of modern living. Whereas older homes may have a smaller panel capacity, especially if using fossil fuel heating systems that only require a relatively small amount of electricity to ignite the combustion process on startup and power fans and pumps needed to distribute heat around your home.

The surest way to determine your panel size is to inspect the equipment yourself. Electrical panels are usually situated inside the home near where a home’s electric meter is located on the outside. This may be in the basement, a utility closet, or a garage. 

Note that some homes may also have subpanels that receive power from the main electrical panel. These are often installed in a new addition or a location with increased electric needs like a workshop or outbuilding. When determining the full electrical capacity of your home, you will need to find the main panel.

Once you’ve located the main electrical panel, open the panel door and check if the capacity is listed on the main breaker or fuse switch. The main breaker is typically located at the top of the panel and is larger than all the others. The total amps may also appear on a label on the electrical panel or electric meter. With older panels, it’s not uncommon for the capacity to be unlisted, which is when an electrician’s services come in to verify the amps on your electrical panel.

Depending on the age and size of your home, your electrical panel could range from 60-400 amps.

A panel with 200 amps is the standard for modern homes, though some larger new homes may be equipped with a service capacity of 400 amps (which may be split between two sub-panels). This is typically sufficient to run all systems in the home on electricity. 

If your panel is less than 60 amps, you may already experience problems with circuits being over-loaded in your home like breakers tripping and should consider up-grading your service. If your panel has less than 200 amps and you are looking to upgrade to a heat pump for your hot water or space heating needs, a service upgrade may be necessary for that equipment to work properly. 

When to Upgrade an Electrical Panel

There are several scenarios when electrical panel upgrades (opens in new window) could be required for safety or to accommodate home upgrades. Flickering lights or frequent tripped circuit breakers are some obvious signs that a home electrical system is not sufficiently meeting demand. If a panel is approaching the end of its useful lifespan (25 to 40 years) or is less than 100 amps, having it inspected is a good idea to uncover potential issues and determine a timeline for a future upgrade.

When pursuing home improvements or equipment replacements, a panel upgrade may be necessary if there aren’t enough open circuits to tap into. For homes with 100-150 amps, adding appliances, installing electric vehicle chargers or switching to all-electric heat pumps (opens in new window) could exceed the available capacity on a panel. For homeowners thinking long-term about their energy upgrades, upgrading to a 200-amp panel is typically sufficient to power an all-electric home.

Electric panel upgrades often cost between $3,000 and $5,000. It’s possible that a home already has a 200-amp service level, even if the panel is 100-150 amps and only requires a larger panel. But a full upgrade may include replacing the electric meter and service wire alongside the main electrical panel, which can increase the project cost. To avoid this cost and optimize home energy use, homeowners might consider a smart panel. These systems can manage electrical loads in a fully electrified house with less overall capacity. For example, a smart panel can turn major equipment like EV chargers or water heaters on and off as needed to prevent a home’s peak load from exceeding the limits that might otherwise require a utility service upgrade.

Moving forward with an electrical panel upgrade involves working with a licensed electrician, and potentially the local utility if the electrical service needs to be upgraded, too.

Funding for Home Electrical Upgrades

There are federal and New York State incentives available to help cover the cost of electrical panel or circuit upgrades, depending on the scope of the project and household income.

Homeowners can claim an Inflation Reduction Act (IRA) tax credit of up to $600 for electrical upgrades that support the installation of new electric equipment. Note that the IRA tax credit is capped at 30% of the project cost.^[1]

Income-eligible New Yorkers may be eligible for upfront discounts on the cost of electrical upgrades if completed as part of a larger project. For instance, the Appliance Upgrade Program covers up to 100% of the cost for electrical panel and wiring upgrades if required for installing an energy-efficient heat pump clothes dryer.

Similarly, the EmPower+ Program provides funding for electrical panel and wiring upgrades when completing an incentivized home energy upgrade, such as installing heat pumps or heat pump water heaters.

Footnotes

1. Home Energy Tax Credits. Internal Revenue Service. (n.d.-b). https://www.irs.gov/credits-deductions/home-energy-tax-credits (opens in new window)