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Smart vs. traditional electrical panels: Benefits, costs, and solar integration

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Smart panels, the next generation of electrical panels, stand out with real-time data on a home’s power and energy usage. These systems, often equipped with Wi-Fi or Bluetooth, empower homeowners to monitor, control, optimize energy usage, and remotely adjust the circuit’s energy distribution.

They have several advantages over traditional electrical panels, such as: 

  • Real-time energy monitoring
  • Tracking consumption via smartphone 
  • Meeting changing energy needs
  • Provide short circuit and surge protection
  • Integration with battery backups and solar systems 

Key functions

The key functions of smart panels can be summarized as connect, measure, and save. Some of these key functions are:

  • A comprehensive suite of features designed to optimize energy management
  • The ability to identify demand peaks and unusual consumption patterns, 
  • Plan for long-term energy use, 
  • Analyze trends for potential savings,
  • Provide essential data for maintenance strategies

How do smart panels differ from traditional panels?

Smart electrical panels provide features that differ from traditional panels, like the distinction between a smartphone and an old landline. Both types serve the primary function of distributing electricity. Still, smart panels offer additional advantages, particularly for homes with contemporary energy requirements, such as solar power, battery storage, and electric vehicles (EVs). One of the main differences is the inclusion of connectivity options like Wi-Fi or Bluetooth, allowing users to monitor and adjust their energy usage remotely. They also provide detailed energy monitoring, which can help optimize consumption and identify inefficiencies in a home’s energy grid. 

Regarding safety, smart panels offer proactive features that enhance performance compared to traditional panels. For instance, they can automatically shut down circuits before they reach unsafe levels, providing homeowners with peace of mind by helping to prevent power surges and electrical hazards. In summary, while traditional panels can fulfill basic electrical needs, smart panels offer control, safety, and flexibility over a home’s energy usage distribution, making homeowners feel empowered and more suitable for homes incorporating modern energy technologies.

In some cases, smart panels can also enable a homeowner to avoid a costly electrical upgrade when a home needs to add circuit capacity. The latest National Electric Code rules enable smart panels to do this but those rules are not in place everywhere. Check with your local electrician on whether this applies to your situation in your jurisdiction.

Traditional panels vs smart panels: A quick comparison

Traditional panel. Source.
Smart panel. Source.
FeatureTraditional panelSmart panel
FunctionDistribute electricity throughout the building in a safe and controlled manner.Similar to traditional panels but with added smart features like connectivity and real-time monitoring.
EfficiencyDependent on system configuration.Higher than traditional electrical panels, due to real time monitoring of the system.
MonitoringNo real time monitoring, it’s done manually via external systems.Real-time monitoring with mobile apps or web platforms. Allows users to track energy generation and performance.
Installation costLower installation cost compared to smart panels ( > $1,000)Higher installation costs, they can cost between $2,000 – $3,000 and thus can increase if the household needs to upgrade its wiring.
System costLower overall cost.Higher overall cost due to the upgraded technology systems.
MaintenanceMinimal maintenance, occasional cleaning. May require occasional updates or adjustments for the smart components.

Why do they matter?

Smart panels are significant because they have the potential to enhance energy efficiency, cost savings, sustainability, and convenience compared to traditional panels. They allow for improved energy consumption management, integration with renewable energy sources, and assistance in mitigating power issues, providing homeowners with a sense of ease and convenience in their energy management.

How much can they cost?

Panels can cost from $2,000 to $5,000.

Who should own smart panels?

Smart panels are designed for homeowners ready to upgrade their homes, especially those considering installing a renewable energy system, a battery backup system, or transitioning to all-electric appliances. Plus, many renewable energy installation companies can also install smart panels. Having the same company do both your renewable energy installation and smart panel upgrade, could save you money. Be sure to get multiple quotes and compare.

How reliable are smart panels? 

Smart panels are becoming increasingly popular because they offer real-time monitoring features and better control over a home’s energy usage. However, like any technology, they have advantages and potential drawbacks.

How smart panels and solar work together

Together, smart and solar panels create an advanced, efficient solar energy system that maximizes energy production, provides real-time insights, and allows quick troubleshooting and optimization, leading to higher performance and less downtime.

How they work with energy storage

Smart panels are designed to integrate seamlessly with smart home systems, enabling efficient energy distribution throughout the home. One of their key functionalities is the ability to work alongside energy storage systems, allowing them to store excess energy generated from renewable sources. This maximizes energy efficiency and ensures homeowners can utilize stored energy during peak demand times, ultimately optimizing energy usage and reducing costs.

What to know before you pick/invest

When exploring smart panel models, assessing key factors that will guide your decision is essential. Start by asking yourself: 

  1. What are my energy needs?
  2. What are my energy goals?
  3. What technology am I looking to integrate into my home?
  4. How hands on do I want to be when managing the energy in my home?
  5. What is my budget?

Answering these questions will help you identify the best equipment solutions tailored to your unique situation.

When it comes to upgrading your electrical system, homeowners typically face two primary options: adding smart components to an existing panel or replacing the entire panel altogether.

Replacing your current electrical panel system

  • Replaces the entire electrical panel with a smart panel offering advanced features.
  • Necessary when dealing with outdated or damaged systems that can no longer meet modern power demands. This option ensures all components are fully integrated and up-to-date but comes with higher costs and potential disruptions.

Ideal for:

  • Comprehensive control over energy
  • Planned upgrades to the home’s electrical system
  • Full integration with smart home devices

Installing add-on components to your existing system

Installing add-on components to your existing system: 

  • Adding smart components allows for cost-effective enhancements, such as smart circuit breakers and energy monitoring systems, without the need for a complete overhaul.
  • This approach is ideal for those looking for gradual improvements in functionality while maintaining a well-functioning panel.

Ideal for:

  • Budget-conscious homeowners
  • People who want to start small and gradually upgrade
  • Those with a functional existing panel

In summary, choosing between these options depends on factors such as the condition of your current panel, your budget, and your desire for immediate upgrades versus long-term solutions. Understanding the differences can help you make an informed decision that aligns with your needs. 

Where can I find smart panels?

Several companies, including Lumin, Span, Schneider Electric, and Leviton, offer a variety of smart panels designed to work with energy storage systems. These companies provide innovative solutions that enhance energy efficiency and integrate seamlessly with smart home technology.

Smart panels offer a modern approach to energy management, providing homeowners with enhanced monitoring and control over their energy usage. With features like real-time data tracking and integration with renewable energy systems, smart panels can assist in optimizing energy efficiency and accommodating evolving energy needs. As technology continues to advance, these systems present an opportunity for homeowners to explore more efficient and flexible energy solutions.

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