Understanding the Cost to Replace an Electrical Panel

If you’re researching the cost to replace electrical panel in your home, you’re likely dealing with flickering lights, tripping breakers, or planning for upgrades like an EV charger or home renovation. An outdated or undersized electrical panel isn’t just inconvenient. It can be a safety risk and limit your home’s power capacity.

In this guide, we’ll cover:

• How much does it cost to replace an electrical panel in 2025
• Common signs and symptoms that it’s time for an upgrade
• Available federal tax incentives to help you save
• When to consider a SPAN smart panel vs. a traditional electrical panel

By the end, you’ll know how to make an informed decision and potentially save money on your upgrade.

The cost to replace an electrical panel in 2025 depends on the size of the upgrade and the home’s electrical needs. Most homeowners today upgrade to either a 200 amp or 400 amp service to safely power modern appliances, EV chargers, and home additions.

A 200 amp panel is recommended if:

• You are adding an EV charger or generator
• Your current panel is over 25 years old (or showing signs of rust or moisture)
• Breakers trip when running multiple appliances
• You’re planning a kitchen or HVAC upgrade
• Your home has electric heating, a hot tub, or workshop tools

A 200 amp upgrade gives most homes enough capacity for today’s power demands.

A 400 amp panel is usually installed in:

• Homes over 3,000 sq ft
• Properties with multiple HVAC systems
• Homes with more than one EV charger
• Smart homes with high-energy electrical systems
• Residences planning solar and battery backup

For homes with growing electrical needs, 400 amps delivers the right balance of safety, scalability, and long-term performance.

Approximately 31% of U.S. homes have electrical panels rated at 100 amps or less, which may limit their ability to support new electric appliances without significant upgrades.

The age of a home can significantly affect the cost of a panel upgrade, as older homes may need updates to meet current electrical codes. The location of the panel is also important, since relocating it can increase both labor and material costs. In some cases, a main service upgrade may be required depending on the home’s power needs.

Additional features, such as EV circuits, whole-home surge protectors, or grounding upgrades, can further increase the overall cost. A licensed electrician, such as Point Electric LLC, should always inspect your home’s electrical system before providing a price estimate.

• Frequent breaker trips when using multiple appliances. This indicates your panel may be overloaded and unable to handle your home’s electrical demand.
• Burning smell near the panel or outlets. This could signal overheating wires or a potential fire hazard.
• Flickering or dimming lights. Inconsistent power flow often points to an outdated or failing panel.
• Outdated panel brands like Federal Pacific and Zinsco. Certain older panels are prone to failure and can pose serious safety risks.
• Warm or buzzing electrical panel. Excess heat or unusual noises suggest overloaded circuits or faulty components.
• Upgrading your home with EV chargers, hot tubs, or major appliances. High-demand appliances may exceed the capacity of your current panel.

Any panel over 25–30 years old is considered outdated and should be inspected to ensure it still operates safely.

Outdated or unsafe electrical panels can disqualify a home from being considered “move-in ready,” potentially reducing its market value by up to 10%.

Good news for homeowners. The 25C Energy Efficient Home Energy Improvement Tax Credit can help homeowners you lower the cost of upgrading your electrical panel.

Here are the details:

• The electrical panel must be installed in a manner consistent with the National Electric Code (NEC)
• Has a load capacity of at least 200 amps
• Is installed in conjunction with, and enables the installation and use of: any qualified energy efficiency improvements, 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)
• You can claim 30% of the projected cost or $600 maximum from now until December 31, 2025.

These incentives reduce your total cost and can be combined with state and utility rebates where available.

When upgrading an electrical panel, homeowners have two main options: a standard panel or a smart electrical panel like SPAN. While traditional panels simply distribute power, SPAN is designed to give homeowners greater control, visibility, and flexibility over their home’s energy use.

• Circuit-Level Control. Unlike standard electrical panels that operate manually, SPAN allows homeowners to view and control individual circuits from a mobile app. This means specific circuits like HVAC, kitchen appliances, or a water heater can be turned on or off remotely.
• Energy Monitoring and Insights. SPAN provides real-time information about energy usage in the home. It breaks down how much power each circuit uses, helping homeowners identify high-energy appliances or inefficiencies. Traditional panels do not provide any usage data.
• Backup Power Management. When paired with battery storage, SPAN makes it easier to manage power during outages. Homeowners can choose which circuits to prioritize so essential systems stay powered longer. A standard panel typically requires a manual transfer switch and offers limited flexibility during outages.
• Modern Design and Software Updates. SPAN panels come with built-in software that receives updates over time, similar to a smart thermostat. This keeps the system adaptable as energy technology evolves. Standard panels do not offer software functionality.

Knowing the cost to replace your electrical panel is just the first step. Understanding your options and the available savings can help you make a smarter investment for your home. Whether you choose a traditional panel upgrade or a SPAN Smart Panel, upgrading today can improve home safety, boost energy efficiency, increase capacity for future upgrades, and take advantage of 2025 tax credits.

If you’d like help understanding your options or need a quote, now is a great time to explore an upgrade before incentive programs change.