Smart Electrical Panel Guide: What Are They and How Do They Work?
If you go months or years barely using or thinking about your home’s electrical panel or breaker box, good. Hopefully this isn’t a jinx.
A new smart electrical panel could give you good reason to think of it more often: information and functions to help you track, save, and control your power.
It’s possible to see electric bill savings, especially by combining the functions of a smart electrical panel with solar panels, a home battery, and an electric vehicle charger. Here’s how a smart panel could be a smart upgrade for your home.
What Is a Smart Electrical Panel?
A smart electrical panel works just like a standard electrical panel, but with additional smart capabilities. It gives you more data about and control over the power in your home, leading to improved savings and safety.
Smart electrical panels give you exact real-time energy consumption data sent to a phone or another screen. You can remotely control circuits and your home’s power, including battery backup power if you have such a system.
A smart electrical panel often has additional sensors to give you data and readings, as well as provide the panel with the monitoring and smart functionalities through machine learning or AI. It often uses Wi-Fi or Bluetooth connectivity so you have real-time and remote visibility and control of the system.
Smart panel vs. standard panel
Standard electrical panels generally cost less than smart panels. Your standard electrical panel often works reliably for decades and is simple to use. So, if that’s all you need from a circuit panel, a standard panel may be the right choice.
Smart panels can also automatically balance the demands for electricity in your home, shutting off certain circuits and prioritizing others, keeping your overall demand lower.
Smart electrical panel benefits also include added safety measures compared to a standard electrical panel with its automatic monitoring and remote functions. It is continuously monitoring every circuit in a home and will instantaneously detect anomalies like surges, overloads, and arc faults, then shut itself down and send you alerts. This can stop a fire or electrical damage.
Differences in a standard electrical panel and a smart electrical panel
| Standard panel | Smart panel | |
|---|---|---|
| Cost | Lower | Higher |
| Connectivity | None | Will send you alerts, data, reports, and you can control functions, usually via an app |
| Use with other smart tech | None | Can integrate with smart devices, appliances, and batteries |
| Energy control | Manual, by controlling switches or breakers in the box | Can control remotely with an app or with digital switches in the panel |
| Monitoring and tracking | None | You can see real-time data, energy usage, cost estimates, and more analytics |
| Long-term savings | None | By tracking and controlling energy usage and, if applicable, your solar and battery usage, you can save money and energy |
What Do Smart Panels Do?
The clearest function you gain with a smart electrical panel is real-time visibility and control of your electricity. You can get live figures of your energy usage down to each circuit, or even appliance. You’ll be able to see major energy-users, vampire energy, or energy you’re using at expensive times, such as using grid energy during peak rate periods; then do something about the energy usage from virtually anywhere.
Along with knowing real-time data, a smart panel and the system’s app can identify electrical usage patterns you may not catch otherwise.
A smart electrical panel will send alerts for surges, arc faults, and when you’re nearing electricity load limits.
Your home may only be able to safely process a certain amount of electricity at a time. As you add electric appliances, you might bump up against this limit. A smart panel may be able to keep you below that limit by smartly balancing your electric loads. This can be helpful if you’re charging an EV or adding major electric appliances like switching a gas stove to an induction stove.
Using a smart electrical panel with solar and battery power
A smart electrical panel could be an important and valuable upgrade if you’ve gone solar and have solar battery backup as part of your system.
You typically want to use as much of the solar energy your system generates and as little grid power as possible. A smart panel gives you easier management of solar power, battery power, and power you’re sending to the grid if you are in a net metering plan.
During an outage, a smart panel can help you control which systems or appliances get battery power. For instance, by directing power to your refrigerator and not your video game console.
A smart electrical panel can help you schedule EV charging away from peak rate periods, too.
Pros and Cons of a Smart Electrical Panel
Smart electrical panels have a lot of positives, but some of the drawbacks might mean they aren’t a fit for some homeowners.
Smart panel benefits
- Real-time information and alerts
- Monitor your electric usage down to the appliance
- Ability to control your home’s power by the circuit from anywhere
- Integration with other smart devices and systems
- Long-term energy and cost savings
- Safety from trips, arc faults, fire hazards
- Can help with optimal solar and battery power usage
Smart panel drawbacks
- Higher upfront cost
- Must have 24-7 internet connection (for the smart functions)
- More expensive to repair or replace
Smart Electrical Panel Cost
Smart electrical panels, including the installation and labor costs, run from $2,500 to $9,000 according to a range of online consumer sources. If you’re not a licensed electrician, you’ll need to hire one.
Total cost depends on the size of the panel, local inspection and permitting costs, whether a backup battery is attached, any needed repairs or upgrades, and more.
Can Smart Panels Save You Money?
Improved electricity usage and efficiency can lead to savings. The information and real-time control a smart panel provides can lower your monthly utility bills. If you have home solar power, a smart electrical panel lets you optimize your solar energy use for savings, especially during higher rate periods.
You may be able to cut the upfront cost by using tax credits and incentives. Smart electrical panels are eligible for federal tax credits in the Energy Efficient Home Improvement Credit but must be installed and placed in service by December 31, 2025. The credit amount is 30% of the new system and installation costs up to $600 for an electrical panel.
There are state, local, and utility-level incentive or rebate programs available in some areas. It pays to check if you qualify for any of these programs.
Smart Panel Installation
Unless you are a licensed electrician, installing a smart electrical panel or any electrical panel is not a DIY job.
A licensed electrician should inspect your current electrical system, pull the proper permits, work on wiring or electrical work needed for the new panel, install the smart panel, test the new system, and integrate the smart panel with smart devices and the app or monitoring system.
Professional installation will likely give you the option of having warranty coverage and future service, plus a licensed professional’s work is insured.
Major Smart Electrical Panel Makers
Some of the major smart electrical panel companies to research and consider are:
Frequently Asked Questions
Are smart panels worth it?
A smart electrical panel can be worth it for your home. Factors to consider include if you want to monitor, track, and control home solar power, a battery backup system, certain home systems or appliances, electric vehicle charging, and overall energy consumption. The insights smart panels provide can help you reduce your energy consumption and save money.
What does a smart electrical panel cost?
Smart electrical panels, including installation costs, can cost about $2,500-$9,000 according to a range of online sources.
What does a smart electrical panel look like?
A smart electrical panel looks very similar to a new standard electrical panel. It is typically a metal box. One difference can be digital circuit breakers instead of manual switches you flip.