How Much Does It Cost To Upgrade an Electrical Panel? (2024 Guide) (2024)

Key points

Upgrading an electrical panel usually costs $2,000 to $5,000, but can sometimes cost more.
The cost is determined by labor, panel size and whether electric lines run underground.
Upgrade your panel if you plan to use more amps than your existing electrical system supports.

The cost to upgrade an electrical panel runs most homeowners between $2,000 and $5,000 for a 200-amp panel upgrade, but it can exceed $25,000 for homes that have electrical wires running underground, according to our experts. The cost of your project will also vary based on where you live, labor costs and your choice of panel size.

Electrification is a priority for many homeowners who want to take advantage of modern technology, such as electric vehicles, move away from natural gas and improve electrical safety. As more appliances are powered by electricity, electrical systems — especially in older homes — may no longer meet new power demands in terms of amperage. That means these efforts to electrify often require an electrical service upgrade.

“Upgrading to a modern panel ensures your electrical system can handle current demands, meet safety standards, and protect your home from potential electrical emergencies,” said Bill Lutz, president of GEN3 Electric and HVAC in Philadelphia and governing board director of the Electrical Association of Philadelphia.

Examining your current electrical needs and contemplating how you plan to electrify in the future will help you determine whether a panel upgrade is worth your time.

What determines electrical panel upgrade costs?

The total cost of upgrading your home’s electrical panel varies widely based on individual circumstances. Lutz said that your actual installation cost will depend on the following factors:

Panel size and capacity: Larger panels and those with higher amperage capacity cost more.
Labor costs: The complexity of the installation can significantly impact the price.
Utility connections: The type of connection that is used to connect to the local utility network may impact your project. If digging is needed, costs will increase.
Materials and components: The quality and type of materials used, such as the panel itself, breakers and wiring, impact the overall cost.
Permits and inspections: Required permits and inspections can add to the expense.
Existing electrical system: If your current electrical system requires additional repairs or upgrades, you may be looking at higher costs.
Location: Regional cost variations play a role in determining the price of each project.
Code compliance: Meeting current electrical codes can involve installing AFCI and GFCI breakers, which may increase the total cost.
Payment method: Whether you finance your project can impact the overall cost due to interest.
Seasonality: Depending on when you want to complete your project, high-demand seasons can lead to higher costs.
Work area condition: Consider your electrician’s work area. Providing a clear area free of clutter can reduce labor time and costs.

Only a licensed electrician can give you an accurate estimate for a 200-amp panel upgrade. “It varies based on complexity and where you’re located,” said Cora Wyent, senior research director of Rewiring America. “It can cost anywhere from a few thousand dollars to $30,000 for a major and complex job.”

Labor costs are determined by your area and the vendor that you choose. Rates range from $50 to $150 an hour. “The complexity of the installation can significantly affect the price,” Lutz said. Ask your electrician to estimate the time the project will take to understand what this fee might look like for you. Keep in mind that you shouldn’t try to reduce costs by making this a DIY project. Panel replacements are best done by experts.

The panel or breaker box itself is one of the lower costs of the project. The hardware costs range from about $200 for a 200-amp panel to over $500 for a 400-amp panel. You may also have other minor parts costs including wiring, electric meter box and circuit breaker switches.

The cost of your project can dramatically increase if the feeder cables to your home need to be replaced to increase capacity. If those wires run underground or are difficult to access, your project may require digging to replace the existing cables. In this case, the total cost of your project could exceed $25,000.

Many locales require permitting in order to upgrade electrical capacity to your home. The cost of this process will vary from location to location. A professional electrician should be knowledgeable about the process and costs for your area.

Other cost considerations

Upgrading your electrical panel will have additional implications on your finances. You may want to consider the Electrical Panel Upgrade Tax Credit. This allows you to claim up to $600 of the project on your taxes when the upgrade enables qualified energy-efficient improvements or the use of qualified energy-efficient appliances.

Depending on where you live, you may be able to take advantage of grants that can help you fund your panel upgrade. Do some research before footing the whole bill yourself.

Additionally, when weighing the benefits of an upgraded electrical panel, you’ll want to understand how this will impact your regular electricity costs.

What is included in an electrical panel upgrade?

Your home’s current electrical system and your planned electrical usage will determine the scope of your panel upgrade project. Some homes may only need a panel replacement of the same amperage while others will need more extensive work to increase the electrical capacity of the home. The extent of upgrades needed will impact both the cost and the length of the project.

Start the process by calculating the electrical load that your home’s system needs to accommodate. Then, evaluate your current electrical panel.

Service upgrade vs. panel replacement

With the help of an electrician, you can determine whether you simply need to replace your electrical panel or if you need a service upgrade to increase the electrical capacity of your home to meet higher power demands.

Replacing the panel can simply involve removing the existing panel and installing a new one. “The process consists of an electrician disconnecting all of the wires into the panel’s circuit breakers, changing the panel and reconnecting the wires,” Wyent said.

However, Lutz said that a service upgrade to increase the capacity of the home, “can include replacing the electrical panel, the service entrance cable, the meter socket and potentially the utility company’s connection.” This last point can make the project much more extensive as the power company would need to get involved to update your home’s connection to the grid.

Choosing an electrical panel

Your electrician can help you choose the size and amperage of electrical panel that will meet your home’s needs safely. The most common upgrade is to a 200-amp panel.

Depending on your electrification goals, you may consider newer solutions. “There are also a growing number of smart panels coming to market that help do things automatically, like pause your electric vehicle charging while you cook dinner, and you don’t even notice,” Wyent said.

Fuse box vs. circuit breaker box

Fuse boxes and circuit breaker boxes are both methods of directing electricity coming into your home from the grid to different areas of your home. Your home’s electrical system is divided into several circuits that will shut off via fuses or circuit breakers if they become overloaded.

Your home either has a fuse box or a circuit breaker box. You can tell the difference by looking in your home’s main electrical box. A circuit breaker box will have a column of breaker switches while a fuse box will have small glass bulbs. Each switch or fuse correlates to a different circuit or area of your home. To fix a tripped circuit in a breaker box, simply flip the switch back on. A tripped circuit in a fuse box requires a new fuse.

Circuit breaker boxes are the most modern technology. The switches make them more convenient than fuses. They are also better equipped to handle the modern home’s electricity demands. While installing larger fuses in a fuse box can handle a higher load of electricity, this becomes more of a fire hazard. Most electricians will recommend replacing an old fuse box with an updated circuit breaker box.

Permitting

Due to the impact on the overall grid and for safety reasons, many areas require proper permitting in order to upgrade your electrical service. A qualified electrician will be knowledgeable about this process and can help you obtain the necessary permits and inspections.

What are signs you need to upgrade your electrical panel?

Upgrading your electrical panel is sometimes necessary. If you are concerned about the electrical system in your house, make sure to consult a licensed electrician who can make recommendations about what needs to be done.

Signs you need to upgrade your electrical panel

You have a lower amperage panel: The energy requirements of a modern home might outweigh older electrical systems, especially those with less than 100 amps of capacity.
Your panel is old: Electrical panels generally have a life of 25 to 40 years. If your panel is reaching that milestone, you may need an upgrade.
You don’t have enough outlets: Extension cords and power strips should be temporary solutions. If you rely on these to power your home, you may need to add additional circuits and outlets which may require a panel upgrade.
Your electrical load is higher than the capacity of your current panel: You may notice your circuit breakers are tripping frequently. Your lights may flicker or dim.
Your current panel is unsafe: An obviously damaged or corroded panel should be replaced. If your panel is smoking or sparking, contact an electrician immediately to assess the safety of your panel. The same is true if you get shocked when plugging appliances into outlets.

Replacing your panel with the same amperage may be a sufficient solution to some of these problems — and will be cheaper. In other cases, an upgraded panel with more amperage or more space for additional breaker switches will be necessary.

Why else might you upgrade your electrical panel?

Home improvement projects force some homeowners into an electrical panel upgrade.

Common projects requiring electrical panel replacement

Home renovations and additions
HVAC system upgrades
Electric vehicle charger installation
Solar panel installation

If you are planning to increase your electrical load beyond the capacity of your current electrical service, you will need to upgrade. Most commonly, homeowners increase from a 100-amp or lower panel to a 200-amp panel.

Upgrading your electrical panel increases the capacity of your home, allows physical space for more circuits and can potentially make your home safer.

Support an all-electric home

All-electric homes use energy more efficiently and have a positive impact on energy conservation and pollution. Reaching the goal of an all-electric home may require you to upgrade your electrical panel to meet the new electrical load when replacing gas appliances with electrical appliances. Based on your choice of appliances, you may be able to stick with your existing panel.

Make space for more circuits

Older electrical panels may not allow enough physical space for additional circuit breakers. If you are doing renovations, building an addition or replacing your gas furnace with a more efficient heat pump, you may need to add circuits which could require a larger panel.

An alternate solution for making space for additional circuits without upgrading your panel would be to add a subpanel. Subpanels make room for more circuit breakers but do not increase electrical capacity.

Make your home safer

The increased electrical capacity provided by an upgraded panel helps to prevent electrical fires. With more capacity, you are less likely to overload your home’s electrical system which is a common cause of electrical fires. Additionally, newer panels have more advanced safety features that protect against electrical faults.

Is it worth upgrading your electrical panel?

Upgrading your electrical panel is worth it for homeowners who require more amperage for electric vehicles or new appliances.

“It can be [worth it] if you have a pretty small panel under 100 amps, or if you plan to use a lot of electricity with things like pool heaters,” Wyent said. “But for many people, it’s possible to electrify on 100 amps.”

For homes that require a more complex job including digging for electrical lines, upgrading might not be worth it, especially if you don’t plan on adding new electrical appliances soon.

Benefits of upgrading

The main benefit of upgrading your electrical panel is the increased capacity to electrify your home. This is handy if you already own or plan to buy an electrical vehicle or another appliance that requires a higher amount of electricity.

Upgrading your panel also helps to future-proof your home. You will be prepared to install the next newest appliance without having to worry about the electrical system in your home becoming overwhelmed. An upgraded panel may also add value to your home. It’s a perk to highlight to potential buyers when selling your home.

Additionally, an upgraded panel can make your home safer. “An aging or degraded panel may not function properly, failing to trip the circuit breakers during an electrical issue,” Lutz said. “This can pose significant safety risks, as the panel continues to provide power

without effectively preventing hazards.”

Drawbacks of upgrading

The main drawback of upgrading your electrical panel is the project itself. It can be costly and time-consuming. To install a panel with higher amperage, some homeowners will need a service upgrade from the power company. That can delay your project by months. This can also run your project closer to $25,000, especially if the electrical wires to your home run underground.

In some cases, when a panel replacement is necessary, you may be better off going for a new panel with the same amperage. This gets around the cost of service upgrades while still meeting most of your electrical needs.

Energy-conscious homeowners may also want to consider the impact on the overall grid. If you and your neighbors upgrade your panels at the same time, your area will require more power which can put strain on the grid potentially leading to outages and higher bills.

To avoid upgrading your electrical panel, you can try reducing the overall electrical load of your home. You can do this by choosing appliances with lower energy requirements or better insulating your home to reduce power needs for heating and cooling.

What’s next?

Upgrading your electrical panel can give your home more freedom with the type and number of modern appliances that you use. From electric vehicles to more efficient heat pumps, you can optimize your home with clean energy and high tech appliances. “Investing in an upgraded panel is a crucial step in maintaining a safe and reliable electrical system,” Lutz said.

Contact a local electrician to get a better idea of what this project might look like at your home.