Many homeowners believe that switching to electric appliances requires expensive electrical upgrades. However, this is often a misconception. In reality, most homes can transition to all-electric systems without increasing the power supply from PG&E.
Electrical service upgrade vs. panel update: what’s the difference?
- Service Upgrade: This involves increasing the amount of electricity supplied to your home by PG&E. It’s often expensive, requires permits, and can lead to significant delays due to utility coordination. In many cases, this is unnecessary and can be avoided as we discuss in more detail below. Service upgrades typically cost between $4,000 and $30,000, depending on the complexity and utility requirements.
- Panel Update: This refers to replacing or upgrading your home’s electrical panel without increasing the power supply. If your panel is old or unsafe, a panel update may be necessary—but it doesn’t require bringing in more electricity from PG&E. This can improve safety and efficiency without the cost and delays of a service upgrade. Panel updates generally cost between $1,200 and $2,000. There is a PCE exclusive rebate that can help reduce your out-of-pocket cost.
Evidence that service upgrades are usually unnecessary
Studies show that most homes can electrify without a service upgrade. For example, Peninsula Clean Energy fully electrified nine homes as part of a pilot demonstration and all of them were done without increasing power from PG&E—even though five of these homes had 100-amp service [link here]. Additionally, research indicates that 99% of both gas-using and all-electric homes never draw more than 100 amps of electric current throughout the year.
Reasons to avoid electrical service upgrades
- Cost: Service upgrades can be expensive, with costs ranging from $4,000 to $30,000, depending on the extent of the work required.
- Utility Delays: Bringing in more power from PG&E often involves lengthy permitting and utility coordination, which can delay your electrification project by months or even years.
Strategies to avoid electrical service upgrades
- Choose energy-efficient appliances: Opt for high-efficiency appliances like heat pump water heaters and induction stoves. These devices deliver top performance without significantly increasing your home’s electrical load.
- Implement Load Management Systems: Use smart panels or load-sharing devices to monitor and control energy use. These systems stagger the operation of high-demand appliances to prevent overloads while working within your existing power supply.
- Upgrade wiring without increasing power supply: If your wiring is outdated, upgrading it may support modern appliances without needing to increase your home’s electrical capacity from PG&E.
- Perform a home energy audit: An energy audit can identify ways to improve efficiency and reduce electrical demand, potentially avoiding the need for a service upgrade.
- Consult with knowledgeable contractors: Work with professionals who understand modern electrification and can find solutions to stay within your current service capacity. Many contractors overestimate the need for service upgrades—a second opinion can save you time and money.
By understanding the difference between a service upgrade and a panel update and using these strategies, you can electrify your home affordably while avoiding unnecessary costs and delays.
