August 27, 2024
It's Time to Get Smart - Your Guide to Smart Electrical Panels, What They Are and Why You Need One
17 Min. Read
Recent innovations in electrical panel technology are introducing advanced features available to homeowners, enabling them to monitor their energy consumption and manage multiple power sources actively.
These smart panels are revolutionizing electrification and giving homeowners more control over their energy consumption than ever.
Here’s what you need to know about smart electrical panels and their benefits.
What is a Smart Electrical Panel?
Every home with electricity has an electrical panel. It’s that thin metal box with a door and a bunch of circuit breakers hidden away in a garage, basement, or out-of-the-way corner. You rarely think about it except on the rare occasion when you need to flip a breaker switch. A smart, state-of-the-art panel is an electrical panel on steroids. It’s filled with technology that will enable you to monitor and control your power use around the clock. As a result, you can reap savings on your energy costs.
Whether your home relies on a traditional or smart electrical panel, you couldn’t turn on the lights or wash a load of clothes without it. The electrical panel is the heart of your home’s power system, drawing energy from the main grid and distributing it throughout your home. It also regulates voltage and amperage, ensuring each circuit receives a safe and consistent flow of electricity.
What Makes Smart Electrical Panels Different?
Comparing smart electrical panels to traditional electrical panels is similar to comparing a smartphone and an old landline. The basic function is the same, but going “smart” offers additional functionality and modern conveniences, and when it comes to power, it also provides added monitoring and control. If you are moving toward electrification and considering energy storage batteries, solar integration, an electric vehicle (EV), or all-electric appliances, upgrading your panel will help you manage your energy use.
Smart electrical panels typically come with Wi-Fi or Bluetooth connectivity features and depending on the make and model of your panel, these features allow you to monitor energy usage and even remotely adjust which circuits are getting power—something that can be a powerful asset when paired with battery storage and solar in times of power outages.
Smart electrical panels also outshine traditional panels with their advanced safety features. Equipped with built-in controls, these panels can actively monitor energy usage and shut down a circuit before it reaches an unsafe threshold. This proactive feature can prevent power surges and will address any potential issues before your circuit breakers interrupt the flow of power, ensuring a safer and more reliable electrical system for your home.
What Are Energy Loads?
Another key difference is that smart panels actively manage energy loads. In order to fully appreciate this feature, it’s important to understand what energy loads are and why they need balancing.
An energy or power load refers to the amount of electricity you draw from the grid at a given time. It’s typically the sum of the energy used by any appliances that are running, any lights you have on, and the standby power consumed by various appliances and electronics that are plugged in.
It is also important to understand that your home’s electrical panel can only handle energy loads up to a certain threshold. For instance, if you have a 100-amp panel, the total sum of the energy used by your appliances can’t exceed that amount of power at any given time. As your power load approaches 100 amps, you will likely run into issues such as flickering or dimming lights, tripping breakers, buzzing sounds, or even an unpleasant smell coming from the electrical wires which is often a sign of melting components and can lead to an electrical fire.
When choosing a new electrical panel for your home, it’s essential for your licensed electrician to perform a load calculation. The panel’s capacity should align with your typical energy consumption. However, as more homeowners invest in at-home EV charging and other electrification solutions, the average energy load tends to increase, so it is smart to plan ahead for the future by future-proofing your home.
A Level 2 EV charging station can draw 30 amps or more, which can quickly overload a 100-amp panel if you have other appliances running. To avoid any overload, many homeowners opt for 200-amp panels to accommodate their increased energy usage.
In addition to investing in a panel with a higher capacity, EV owners can also explore other solutions such as load shedding to better manage their energy consumption.
How Do Smart Panels Manage Loads?
Beyond increasing your electrical panel’s capacity, you can invest in a smart panel that actively manages loads by prioritizing and selectively shutting off non-critical circuits.
For instance, you can configure your smart panel to shut off the circuit powering your living room at night to prevent phantom or accidental energy draws and prioritize the circuit you use to charge your EV overnight.
A smart panel’s advanced energy management features also allow you to automatically balance loads whenever electricity usage reaches a certain threshold.
Load management is a complex topic, and it’s important to keep in mind that every household has different needs when it comes to energy consumption. You should discuss your specific needs with a licensed electrician to determine the ideal panel capacity for your home and explore active load management with a smart panel.
What Can You Do with a Smart Panel?
A newer electrical panel with “smart” capabilities distributes electricity to the different circuits in your home. In this way, it’s just like a traditional electrical panel. Both types also serve as circuit breakers to protect your system from short circuits and surges.
However, with a contemporary panel, you no longer need to physically inspect circuit breakers to determine which circuit is off. Instead, the technology in the panel keeps you informed by letting you know if any circuit breakers have tripped and enables you to control which circuits are on at what time.
A smart panel also includes advanced energy management features that give you control over where the panel draws power from and where it distributes it. In other words, you can choose to prioritize one energy source over another or determine which circuits the panel will power first.
For example, you can switch between power from the grid and a renewable energy system, or prioritize EV charging over other circuits.
How Can You Save Money With a Smart Panel?
Simply put, a smart panel is essentially an energy management system, as it serves as the brain of your home to optimize your energy use and even the amount you spend on electricity.
Gain Visibility Into Your Energy Consumption
The panel lets you monitor and manage the energy load using smartphone or computer apps. It shows how much power each circuit is drawing. This allows the homeowner to turn circuits on and off as needed. It also enables owners to prioritize or schedule circuits. Areas of the home with critical power loads, such as the refrigerator or heater in the winter, can be prioritized to remain on. An EV can get plugged in when you get home, but the panel can delay charging until utility rates are most favorable.
Gaining visibility into your home’s energy usage can help you identify opportunities to reduce consumption. A smart panel has the ability to reveal areas that you wouldn’t be able to spot, such as an old appliance that draws excessive electricity or unnecessary energy wasted on heating or cooling when you are away from home. By identifying these areas for optimization and improvement, you can make informed decisions to optimize your energy use and lower your bills.
Once you have a better idea of your family’s energy consumption habits, you can create an automated schedule to have your smart panel automatically shut off some circuits you don’t need at night or when no one is home.
Smart Panels and Renewable Energy Sources
You can save even more by using a smart panel to manage different sources of energy.
More homes now have solar panels or a battery storage system. In these homes, today’s smart panels let you switch between different power sources to control electricity use around the house. With this flexibility and the data provided by the panel’s sensor boards, you can maximize efficiency and minimize utility bills.
For example, you can use solar power to charge your electric battery system. Then you can use the power from the battery system when the sun is not shining. You can also choose to draw power off the batteries when utility rates are at their peak to save money but only direct that power to part of the home or particular appliances. This helps keep energy costs contained on hot summer days.
Can a Smart Panel Support Energy Resiliency?
Additionally, homeowners who install a solar array and a storage system usually must choose which loads to back up in a power outage. However, with a smart electrical panel, you can alter the loads that are operating or backing up in real-time. This ensures you use backup power only where you critically need it, and it will last longer.
Some smart panels also feature battery load management capabilities. This lets you automatically keep your backup battery at an optimal level and ready to use.
With 13% of U.S. residential solar systems now powering batteries with excess energy, home storage solutions are growing quickly. As the cost of storage and solar systems continues to decrease, investing in a reliable backup system has become more attractive than ever, especially with the increasing frequency of rolling blackouts and extreme weather events across many regions.
A smart electrical panel will increase resiliency and make your battery last longer by prioritizing some circuits over others during an emergency. It can also automatically manage battery charging to ensure you always take advantage of low energy rates to maintain a full charge.
On a broader level, smart panels can support resiliency by managing your energy consumption during peak hours. As electrification continues to accelerate, many utility providers have to amp up their power production and distribution capabilities.
Despite significant investments in the power infrastructure, the grid is still in need of additional upgrades and experiences strain on a regular basis, especially in rural areas. Utility providers use different strategies to manage strain, such as implementing time-of-use pricing to discourage energy usage during peak hours.
Smart panels could play a crucial role in easing the strain on the grid if everyone in the community used their advanced energy management features to keep energy consumption below a certain threshold during peak hours. By leveraging these capabilities, we could collectively manage demand and reduce grid stress, leading to a more efficient and stable energy system for all.
What Are the Main Benefits of Smart Panels?
An old-fashioned electrical panel was adequate in a world that wasn’t so dependent on electricity. However, several factors have changed the demand for electrification and for more control over the energy you consume.
Save on Your Energy Bills
Residential electricity rates have increased by around 10% over the past decade as more homes include electrical appliances, heating and cooling, and other technologies.
An upgraded, smarter panel will put you in control of your energy usage and spending. It offers reporting capabilities and mobile control of which circuits are operating rather than letting them all run 24/7.
Some utility providers even offer incentives to EV owners who are willing to install a smart connected panel. Connectivity allows the utility provider to track charging remotely and reward consumers for charging during off-peak hours or for automatically slowing down charging when energy consumption rises.
Meeting Changing Energy Needs
Several factors drive the demand for energy usage. Computers, mobile devices, and large appliances such as clothes dryers or electric ranges are used in homes around the clock. Now, with EV adoption rates growing rapidly, there’s more demand for vehicle charging around the clock. An electrical panel that lets you take advantage of off-peak rates will boost your return on the EV purchase, and dynamic energy management features could be a necessity as entire communities adopt EVs.
Increasing Resilience
Although the federal government has allocated money to update the aging electric infrastructure, it will take a long time to modernize the grid. With increasing severe weather incidents, the potential for rolling or even multi-day blackouts is greater than ever. Smart panels are crucial to reliable home power solutions when using backup battery systems.
Reducing Your Carbon Footprint
Climate change is nearly irreversible, but everyone can make a difference by reducing carbon emissions and energy usage. If you are considering going all-electric, you will have to look for high-efficiency heat-pump air and water heaters. You’ll also need qualified contractors familiar with the technology and its installation. However, there is little value if you’re not using technology to control energy usage and costs.
Future-Proofing Your Home and Boosting Your Property Value
As energy prices rise and the demand for modern electrification solutions grows, future-proofing your home has never been more important. Upgrading to a smart electrical panel now can enhance your property’s value and ensure you’re prepared for future energy needs. Investing in this technology today not only addresses current challenges but also sets your home up for long-term benefits.
Summary of Smart Electrical Panel Benefits
Smart panels are a safe, reliable solution for electrification projects. They’re the best option for projects that increase electricity usage or draw the most power, such as at-home EV charging or an electric HVAC system. They can prioritize essential circuits when using battery backup systems and provide short circuit and surge protection of traditional panels. Eventually, they will become standard, much like smartphones have replaced landlines. These panels are also an excellent option for multifamily rental properties and commercial buildings seeking more load management capabilities.
Exploring Smart Electrical Panel Use Cases
In addition to managing your energy consumption and costs, smart panels can pave the way for a number of modern electrification solutions.
The Future of Electric Vehicles
EVs could represent close to 30% of all auto sales by 2030, which means that a third of all potential buyers will benefit from an electrical infrastructure that can support at-home EV charging.
A smart panel can also manage the energy exchange that needs to happen during bidirectional charging. Bidirectional EV charging allows you to plug in your EV and use the charge stored in the battery to power another load.
You can use this technology to power your appliances when your utility provider enforces a higher rate or even take advantage of the automation and features to upload any unused electricity to the grid in exchange for energy credits through net metering programs your utility may offer. This technology is still in its early adoption stage, but the next generation of EVs will likely feature bidirectional charging capacity on a broader scale, enabling further uses and opportunities for your energy.
A smart electrical panel gives you control over this feature and ensures you get the most value out of any leftover charge in your EV’s battery.
Another important thing to consider is that many families will eventually need a second EV and a smart panel would be ideal for rotating loads and ensuring both vehicles are charged overnight.
Solar Energy
With close to 7 GW of residential solar capacity added in 2023, more homeowners are continuing to embrace solar energy.
If you’re considering adding solar panels, upgrading your home with a smart panel can give you better visibility into your energy needs and help you choose the right solar solution.
Once your solar array is in place, your smart electrical panel will allow you extensive management of your energy production and usage, making you more reactive if maintenance is needed and helping you track costs and benefits more accurately.
If your smart panel shows a surplus of energy, joining a net metering program could be a good option for you. Your smart panel will help you determine when production is high enough to sell a surplus of energy and when it makes more sense to store or use the power your solar panels produce.
If also paired with battery storage, your smart electrical panel can additionally determine when selling stored, excess energy will have the highest profit based on your utility net-metering rates.
Flexible Whole-Home Energy Management
Smart panels are a flexible solution that adapts to your unique energy management goals, whether you want to reduce costs, prioritize using renewable energy to reduce your carbon footprint, or simply be more independent from the grid.
A better understanding of your power consumption can help you identify new electrification solutions or find areas where you can have energy savings. Control features allowing you to prioritize which circuits get power or which energy source to draw from make a smart electrical panel a must-have component for a modern approach to whole-home energy management.
Nanogrids and Microgrids
The U.S. had nearly 700 microgrids in use at the start of 2023. These modern energy solutions operate as local grids that can power homes, businesses, and even entire neighborhoods by drawing from local energy resources.
Microgrids and nanogrids will play a crucial role in reducing the strain on the power infrastructure and reducing energy costs in the future. These systems rely on smart components to manage energy distribution and draw from the main grid when needed.
As these systems become more common, more homes and businesses will adopt smart panels to share information about their energy consumption in real-time with their local microgrid or nanogrid. This data will help these small-scale systems adjust local energy production and project energy usage accurately.
How to Install a Smart Electrical Panel
Upgrading your home with a smart panel isn’t a DIY project and an improperly installed electrical panel of any type can lead to catastrophe, whether immediate or in the future. It is crucial to hire a qualified professional to oversee this project as it deals with high-powered voltage and requires a deeper understanding of electrical work.
How Can a Licensed Electrician Help?
A licensed electrician can assess your needs, recommend the best smart panels, and design a customized electrification solution for your home. They will pull the necessary permits for the electrical work and follow best safety practices to ensure the panel works as intended.
More importantly, a licensed electrician with skills and experience installing and servicing energy transition technologies such as a smart electrical panel will ensure your panel is safely installed and properly integrated with any other technologies, devices, or appliances in your home.
Look for a trusted electrician with extensive experience with smart panels since these appliances require advanced skills for configuring their connected components or interfacing with renewable energy systems.
The installation process will require contacting your utility provider to temporarily cut power to your home. Your electrician will then remove the old panel, perform any necessary wiring upgrades, and connect the new panel. This process also entails extensive testing and configuring of the new system.
To avoid potentially costly issues and ensure everything is done correctly and to code, it’s essential to have a qualified expert handle the installation.
How Much Do Smart Panels Cost?
Costs vary based on the panel’s capacity, brand, and features, but smart panels usually cost between $2,000 and $5,000.
It’s worth noting that you can save by taking advantage of different incentives. If you are upgrading your panel while installing a solar energy system or a heat pump, the Residential Clean Energy tax credit will also apply to the panel.
At the state level, you can qualify for rebates or sales tax exemptions depending on the programs available where you live and additionally, your utility provider might also offer incentives.
Getting Qualified Help With Qmerit
Smart electrical panels are quickly emerging as a key component in building the power grid of tomorrow. Beyond giving you more visibility and control over your energy consumption, these panels will play an essential role in creating a modern energy grid where utility providers are more reactive and communities can leverage their own energy resources.
At the residential level, smart panels create value for homeowners interested in EV charging, solar energy, and battery storage.
Upgrading your home with a smart panel requires the help of a professional. A qualified electrician will assess your energy needs, recommend the best smart panel, and oversee installation.
With the largest and most qualified network of certified electricians in North America, Qmerit is the trusted smart electrical panel installation partner recommended by manufacturers. Rated #1 in customer satisfaction, we’ve completed over 86,000 electric panel upgrades and Qmerit’s network of licensed contractors is actively supporting electrification across the country through our latest PowerHouse by Qmerit™ initiative.
You can count on us to deliver quality electrification solutions adapted to your unique needs, starting with a thorough energy assessment to determine if a smart panel is the right choice for you.
Contact Qmerit today to learn more about smart panels and get in touch with a local electrician.
