Should You Replace Your Electrical Panel? Pros & Cons
Your electrical panel is the heart of your home’s electrical system. It receives power from the utility (or your solar panels, distributes it throughout your home, and prevents overloads that could cause a fire.
Electrical panels last a long time, but they do get old and need to be replaced occasionally.. Sometimes, you outgrow your electrical panel and need an upgrade to increase the amperage.
At SouthFace Solar & Electric, we help Arizona homeowners stay safe and powered with professional electrical services. We’ve been at it for over 17 years and know when it makes sense to replace your panel—and when you should save your money.
Replace vs Upgrade: What’s the Difference?
When you’re installing a new electrical panel, you have two options:
- Replace it with a new panel that has the same amperage. This is the cheapest option and the best choice if you’re replacing your panel because it’s old, worn down, or unsafe in some way.
- Upgrade to a panel with higher amperage. If you’re planning to install high-usage appliances like a central AC, a heat pump, or an EV charger, you might need more amperage, especially if your current panel is under 200 amps.
When Should You Replace Your Electrical Panel?
There are a few common signs that your panel is no longer safe or reliable:
- It’s over 30–40 years old
- There’s buzzing and/or a burning smell coming from the panel
- Breakers trip frequently or don’t reset properly
- You see rust, burns or corrosion inside the panel
If you’ve noticed any of these issues, call 480-405-8635 to schedule a free electrical panel inspection.
When Should You Upgrade Your Electrical Panel?
You might need to upgrade your amperage if:
- You’re installing high-power appliances like a heat pump or EV charger
- You’re switching from gas to electric appliances
- You’re current panel is under 200 amps
- You’re adding square footage to your home
- You’re installing a large solar system
If your house is relatively new, you probably don’t need to upgrade your electrical panel to support electric appliances or solar panels. Most modern houses are built with plenty of amperage. But if your house is older or your panel is under 200 amps, you should consider an upgrade.
Pros & Cons of Installing a New Electrical Panel
Electrical Panel Upgrade & Replacement Pros
More Amperage
With more amperage, you can plug more in at the same time without overloading your breaker. Depending on your current amperage, an upgrade could also give you more options when it comes to installing new electric appliances or going solar.
Safety
Old, outdated panels can be a fire risk. Upgrading will help protect your home and family.
Future-Proofing
We’re using more and more electricity every day. If you upgrade your panel now, you’ll be ready as your needs grow. It’s a good project to tackle in conjunction with a home renovation or other electrical work and upgrades, so you only have to bring an electrician out once.
Electrical Panel Upgrade & Replacement Cons
Cost
Installing a new electrical panel can be expensive, especially if you need a service upgrade. On average, you can expect to pay around $1,500 to $4,000 for a new panel, but the cost can be significantly higher if you need a service upgrade.
Time
You typically need a permit to upgrade an electrical panel in Arizona. We can pull permits quickly, but it adds to the amount of time your project will take.
So, Is Updating Your Electrical Panel Worth It?
Replacing your electrical panel is an investment. In some cases, it’s worth the cost.
If your panel is old and unsafe, replacing it will prevent serious safety risks like a house fire. If you’re constantly tripping circuits and don’t have enough outlets, or you want to add new electric appliances or go solar, the cost might be worth it for the extra amperage.
If your panel is under 30 years old and 200 amps or higher, you probably don’t need a new one, even if you want to install more appliances or go solar.
SouthFace Solar & Electric is a full-service, licensed electrician serving all of Arizona. We can help you decide whether an electrical panel upgrade or replacement is worth the cost in your specific situation.