Homeowner’s Guide to Smart Electrical Panels

Service panels are the control center for our home electrical systems. Their design hasn’t changed much since resettable circuit breakers replaced fuses in the mid-20th century…until now. The service panel of the future is digital, and it promises to revolutionize the home electrical system.

The change is necessitated by the electrification of the home, which is a dawning reality in North America and elsewhere. Driving this change are two main factors: the dwindling supplies of fossil fuels and the detrimental environmental results of burning those fuels. Government policies to address these problems are mandating the replacement of gas furnaces, stoves and automobiles with electric ones.

Add the fact that cost-conscious homeowners are supplementing grid power with renewable energy from the sun and wind and using batteries to store the energy, and the need for an intelligent control center becomes unavoidable.

Several manufacturers, including Schneider Electric, Eaton, Koben and San Francisco startup Span have introduced smart panels. Master electrician John WIlliams says theyse panels are much more reliable than they were even a few years ago because “such brand-name equipment has been thoroughly evaluated and subjected to exhaustive testing by UL, ETL, CSA or other testing laboratories.”

Not every home needs a smart panel, at least not yet. But as electrification advances, these advanced controls are likely to become as ubiquitous as the traditional analog breaker panel is today.

What Is a Smart Electrical Panel?

From the outside, a smart panel looks like a streamlined version of a conventional panel, but it functions in a radically different way. Digital circuit breakers replace the manual toggle switches you find in a conventional panel, and each breaker communicates with a central data control center that monitors the entire load on the panel and can turn breakers on and off as needed.

The panel conducts a load analysis in real time and provides that data to the homeowner, who can program the panel either directly or through a mobile app. The homeowner can, for example, elect to preserve battery power during an outage, reduce power consumption during peak energy hours, or both. This type of load management is crucial in a home that combines grid and renewable energy while supplying power to a household full of electric appliances. ( Explore what modern home buyers need in new home appliances.)

A smart panel connects to a home’s circuitry in the same way a conventional panel does, but design and functionality differ by manufacturer. The Span panel, which is the one favored by Sunrun (a leading solar installation company) features a built-in switch that automatically disconnects the panel from the grid when the power goes out so the home’s battery system can safely take over.

The Span panel provides three circuit classifications to extend battery life during a power outage: “Must have”, “Nice to have” and “Not essential”. When the power goes out, all “Not essential” circuits shut down while “Nice to have” circuits stay on until the battery falls to 50%.

Smart Electrical Panel Pros and Cons

The difference smart panels make to home electrical systems is analogous to the difference smart phones have made to everyday communications. Installing a smart panel provides the following benefits:

• Lower energy costs;
• More efficient energy usage;
• Automatic switching between solar, wind and grid electricity; and
• Remote diagnosis of electrical problems.

The downside is cost. Not only is the price of a smart panel more than that of a conventional one — $2,000 to $5,000 vs. $400 to $800 — but installing one may involve a service upgrade. If your current panel is rated for 100-amp service, you’ll probably have to upgrade to 200 amps or more. Because that involves replacing the service cable with one of a heavier gauge, the entire project could cost from $1,300 to $3,000.

The silver lining is that you’ll probably need the service upgrade anyway if you’re planning to fully electrify your home by replacing your gas appliances with electric ones. You’ll also need the upgrade if you plan to install a car charging system.

Who Should Upgrade to a Smart Electrical Panel?

Basically, every homeowner can benefit from a smart panel, but it’s a luxury upgrade for any grid-tied house that has a conventional panel in good working order. A smart panel becomes more of a necessity for people in the following situations:

• You are installing a solar-or wind-powered electrical system and tying it to the grid. A smart panel will help optimize your energy savings.
• You are installing a battery backup system. A smart panel will manage the electrical load to maximize battery life.
• You are electrifying your house and replacing all your fossil fuel appliances with electric ones. A smart panel will help balance electrical usage to prevent an overload.

One of the perks of a smart panel is the ability to connect to it remotely. This allows you to turn breakers on and off and diagnose problems while you’re at work or away on vacation.

For example, if you rent part of your house as an Airbnb while you’re away, you can turn on the power to that part of the house when people are there and turn it off when they leave, to save energy. If your house is vacant during the winter while you vacation in the sun, you can monitor weather conditions at home, turn on the heat during cold spells to prevent the plumbing from freezing and leave the heat off at other times.While you’re at it, take this opportunity to learn about energy vampire for standby power that can make many of your appliances run 24 hours a day.

You can do this all from your mobile device, which is pretty much the definition of convenience. Here’s what you need to know about smart home wiring.

Next: Check out homeowner’s guide to an AC fuse box.