Author: Josh Hebert
June 10, 2025 - 7 MIN. READ
Key takeaways:
- As many as 48 million American homes could need new electrical panels for electrification. The demand is also high in the commercial building market.
- Beyond electrification, there is a need for panel upgrades due to homes and buildings aging, and panels no longer being up to code.
- For electricians interested in this market, it’s important to communicate the benefits of new panels, address cost objections, and build a strong procurement process.
Are American homes and buildings running on outdated electrical infrastructures?
The answer is yes in many cases, and for two main reasons. First, the housing and building stock is aging across the country, and high new construction costs mean this might persist for the foreseeable future.
Secondly, electrical needs are changing, and the average business or household is using more electricity than before, in part due to electrification, and in part due to simply running more equipment or appliances.
Electrical panel upgrades are a golden opportunity for contractors who know where to look for these jobs and how to structure their business to offer this service.
Electrical Panel Upgrades Market Overview
How big is the electrical panel market exactly?
Experts believe that as many as 48 million American homes could need panel upgrades. These homes are running on a 100-amp panel and sometimes even using old fuse boxes, which leaves them unprepared for electrification. Something as simple as replacing an old gas-powered clothes dryer with an electric model can be too much for these aging panels, without mentioning electrification projects like adopting a heat pump or adding an EV charger in the garage.
Commercial buildings are in a similar situation. With 68% of office buildings dating from before 2000, it’s no surprise that building owners and managers are eyeing retrofit projects and electrical infrastructure upgrades to meet modern power demands.
This goes far beyond office buildings. Electrification is coming to the commercial space with technologies like smart lighting, connected security systems, renewables integration, electric HVAC, EV charging, and building automation, all of which call for panel upgrades.
For electrical contractors like you, these jobs are often high-value projects with excellent ROI. What begins as a panel replacement can lead to additional electrical upgrades. If you have a value-added business model, panel upgrades can be a great way to connect with customers who will need further electrification work or maintenance later on.
The Case for Panel Upgrades
To fully understand the scope of the electrical panel market, it’s important to look at why these upgrades are a necessity:
- Many panels are getting close to the end of their lifespan. Panels last 25 to 40 years on average, and the median age of owner-occupied homes across the country is 40.
- The National Electrical Code (NEC) is updated every three years. Each new version is more complex and stricter on safety, which means many older panels are no longer up to code.
- Plus, several large-scale panel recalls have occurred over the past few years. This doesn’t mean products are getting worse, but it does mean manufacturers pay closer attention to safety.
- Insurance companies know electrical risks and have strict requirements, sometimes refusing to issue a policy for a home or building with an outdated panel.
These arguments build a strong case for panel upgrades, but you can go further by conducting load calculations. Many homes and commercial buildings are close to outpacing their panels’ capacity, and adding more appliances or equipment would push them over.
For instance, homes often need to increase their electrical power from 100 amps to 200 amps to accommodate a heat pump or EV charger. In commercial buildings, the trend is to increase the main panel’s capacity up to 4,000 amps or add multiple sub-panels to manage the growing number of electrical systems.
If you need more reasons to recommend a panel upgrade, you can bring energy management, safety, and energy efficiency:
- Smart panels are a growing trend in electrified homes and buildings. They provide excellent visibility over energy consumption and can automate switching between different power sources in applications like battery backups or renewables integration.
- These panels are also compatible with Building Energy Management Systems (BEMS), which optimize energy consumption across different electrical systems in commercial buildings and ultimately lower energy bills.
- Plus, smart panels improve safety with real-time monitoring and alerts.
Overcoming Cost Objections for Panel Replacements
In spite of all these benefits, replacing a panel comes with a hefty price tag. You’ll likely run into customers who object to the cost, even though they need electrical upgrades.
To secure panel replacement jobs, you’ll have to build a strong argument to overcome cost objections. Here are some strategies you can use:
- Put the safety argument forward. A new panel significantly reduces the risks of electrical fire and damage to the rest of the infrastructure.
- Higher panel capacity means that adding new electrical systems and applications is possible. This can lead to a discussion on the benefits of electrification, including cost savings.
- You can also present electrical panel replacements as an investment that increases a home or building’s value.
- Balance out the upfront investment with long-term savings. Newer panels can improve energy efficiency and help reduce maintenance and repair costs.
- Compare and contrast panel replacement with other solutions like adding a subpanel or a load-shedding device.
- Look into the 25C tax credit. Under the Bipartisan Infrastructure Law (BIL) and the Inflation Reduction Act (IRA), some financial incentives are available to help cover the cost of panel replacements.
- Don’t forget to personalize these benefits based on the goals of each customer. Find out what their energy concerns are and ask about their future electrification plans.
Besides worrying about cost, customers often wonder about disruption. You can address this objection by discussing a clear timeline for the panel replacement and scheduling a short power outage at a convenient time for your customer.
Creating Value with Add-Ons
Add-ons can boost your ROI for panel replacement projects, create more value for your customer, and help justify the cost of the upgrade:
- Replacing an old panel is an opportunity to add an EV-ready circuit. Even if the customer is not planning an EV purchase, this in-demand perk adds value to the home or building.
- Whole-home surge protection is a simple panel-level upgrade that increases safety.
- Load shedding can be a great way to prioritize mission-critical circuits and manage energy costs in buildings with high energy usage.
- Homes and buildings with an aging infrastructure often need updated wiring. Scheduling this upgrade at the same time as the new panel installation reduces disruption.
- Commercial customers sometimes need utility-side service upgrades to complement their new panel installation. By coordinating this electrical work directly with the utility company, you can help your customer switch to three-phase power or another solution more adapted to their needs.
Build a Better Procurement Process for Panel Replacement Projects
Before you can go after the electrical panel replacement market, you should make a few changes to your procurement process.
You’ll need a strong buying strategy to secure top-quality panels from trusted manufacturers and access products with the latest energy-saving and safety features.
Plus, building a fast procurement process means streamlining the planning stage of the panel replacement projects you work on and giving your customers an accurate timeline.
It’s where Raiven can help with its vast network of vetted suppliers and convenient digital buying tools.
Raiven is on a mission to transform buying for the trades. Our innovative platform connects contractors, enterprises, and suppliers into a digital supply chain network.
The goal is to simplify sourcing, reduce costs, and unlock operational efficiency. New business opportunities become available, and you can scale faster.
Stop wasting time and money on inefficient procurement! As a Raiven member, you’ll get access to:
- Our procurement platform. Manage vendors and accounts with one convenient digital tool.
- Price tracking. Always find the best prices on the supplies you need.
- Exclusive cost savings. Raiven pre-negotiates prices, cutting your costs by 10 to 15%.
- A thriving community. Join a fast-growing group of 2,500+ contractors ready to innovate.
Visit Raiven to learn more about building a strong supply chain that will support your efforts in the panel replacement market.
