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Climate Coach


WANT TO ELECTRIFY YOUR HOME? IT MIGHT NEED THIS UPGRADE FIRST.

Advice by Michael J. Coren
Climate Advice Columnist
March 5, 2024 at 6:30 a.m. EST

(Illustration by Emily Sabens/The Washington Post; iStock)

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First I added an electric vehicle charger. Then an induction stove. Soon, I’ll
swap out my rusting 25-year-old gas water heater for an ultraefficient heat
pump. What comes next?

Nothing — unless I get more juice from my utility. Just one additional appliance
will overwhelm the 100-amperage (amp) electric panel that connects me to the
grid.



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planet, in your inbox every Tuesday.ArrowRight


My dilemma is one shared by at least 48 million other homes in the United
States: Our connections to the electrical grid are stuck in the mid-20th
century, when fossil fuels, not electricity, supplied much of our energy. To
fully electrify, we’ll need to rethink those gray metal boxes with breaker
switches wired to the grid.

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Upgrading your panel to get more power is not always possible. Contractors are
booked. Utilities are overwhelmed. Equipment is in short supply. And it’s
expensive.

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That’s a $100 billion roadblock to home electrification in America, according to
Pecan Street, a nonprofit climate and energy research firm that estimates as
many 48 million single-family households would need to be upgraded.

Luckily, the lowly electric panel is getting a digital brain. These “smart
panels” can act as a traffic cop over the stream of electrons powering your
life, tracking and adjusting the energy demand of devices from toasters to
electric cars so you don’t trip any breakers. And if you’re in a rush to add big
electric appliances, it may be much faster than a traditional upgrade.

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Here’s how to electrify our homes without blowing a fuse.

WHAT ARE SMART ELECTRIC PANELS?



If you’ve ever walked into an office building, a computer was probably helping
manage the air conditioner and dimming the lights. These networks of chips,
relays and sensors — known as energy management systems — ensure companies avoid
outages and save every last penny on their utility bill.

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They’re now arriving in homes as Americans add more electric appliances, drawing
more current than a typical 100-amp electric panel can handle. Electric cooking
ranges and EVs are the trigger for many to upgrade their panels, according to
Ben Hertz-Shargel of Wood Mackenzie, a clean energy consulting firm. Without
more capacity, the little black switches in your electric panels known as
breakers will flip off when overloaded.

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Another solution, though, is ensuring all your appliances don’t run full blast
at the same time.

Span is one of the handful of smart panel companies reimagining the old metal
box as a connected computer. Its hub can detect electrical devices in your home,
distinguishing devices’ energy signature. The smart panel then tracks and
forecasts how you use each one. Based on that information, it orchestrates your
home’s energy consumption either by talking directly to connected devices — over
WiFi or near-range signals — or physically turning on and off circuits when they
near capacity. Span, which sells its smart panels for about $3,500, says it has
struck deals with Kenmore and Mitsubishi to communicate with appliances
directly.

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Installing a smart panel may avoid an upgrade ranging from $1,000 to $5,000. By
code, electric panels must be able to handle all appliances running at the same
time, roughly 10 to 20 times higher than the average load. That’s exceedingly
rare, says Arch Rao, Span’s founder and chief executive, and formerly the head
of product for Tesla. Span’s customer data suggest such peaks occur less than 1
percent of the time over a year, but the company’s software always keeps
amperage below the rated capacity by ramping devices up or down.

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Smart panels can also lower your utility bill. They take advantage of rates that
vary by the time of day, picking the cheapest time to charge your devices. If
you have solar panels, they can soak up their output at peak hours, avoiding
buying from the grid, or optimizing the use of big home batteries during
blackouts. Renters can even benefit since a single unit can be retrofitted for
heavier loads without rewiring the entire building.

The biggest winner? Efforts to cut emissions from buildings, which account for
roughly 20 percent of overall U.S. emissions.

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If utilities’ customers need more power at home, a bigger panel may not be
enough. Utilities must invest billions in infrastructure to deliver that
electricity, and stabilize the grid as more intermittent, clean energy comes
online. Home-energy management systems could avoid billions of dollars in
upgrades.

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“We are going through electrification for both homes and transportation,” says
Helia Zandi, a researcher at the Department of Energy’s Oak Ridge National
Laboratory. “Orchestration between them at scale is really important to make the
future we are looking for.”

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OTHER WAYS TO MONITOR YOUR POWER

Brian LaMorte, an independent electrical and HVAC contractor in New York, says
he’s installed the Span panels for about $4,000 each around the state. That’s on
top of the $3,500 cost of the panel.

“It’s a no-brainer for people who are going to do a service upgrade that’s
either impossible or over $10,000,” he says. “It’s either your only option or
it’s going to save you money.”

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As cheaper panels hit the market, and rebates roll out under the Inflation
Reduction Act shaving thousands off the price, he expects this to come within
reach of low- and middle-income homeowners. Other companies selling smart panels
are Schneider Electric and Lumin.

You can also take intermediate steps. NeoCharge, SimpleSwitch and Splitvolt sell
smart subpanels and breakers that can control one or a handful of circuits
rather than the whole house to balance major loads, such as an EV charger and
dryer.

But if you’re willing to wait, you may be able to manage your home’s energy use
from your electric meter, the unassuming glass-enclosed device on your house.

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That’s what Sense, a start-up based in Cambridge, Mass., is doing.

For now, the company sells a home-energy monitoring system. It clamps onto your
conventional panel to identify and track devices’ electrical consumption with
software similar to voice recognition. But soon, predicts Michael Phillips,
Sense’s co-founder and chief executive, his company’s software (and others like
it) will come installed as a standard feature of smart meters. This will offer
homeowners an app store-like experience to identify and control their devices’
energy consumption, no hardware required. The smart meters will communicate
directly with devices to modulate their consumption. Both Sense and Span have
struck deals with manufacturers to include their software in smart meters.

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“We want to be like Google Maps on an iPhone,” says Phillips. “The smart meter
is where this should happen.”

WHAT SHOULD YOU DO TODAY?



If you need the extra electrons right now and face an expensive — or delayed —
utility upgrade, smart panels offer a potential solution. States are likely to
upgrade their electric code to allow homeowners to exceed their panels’ rated
capacity if they have an energy management system. EV chargers can already do
this under the 2023 National Electricity Code, but it could take years for
states to adopt it.

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For those who just need to manage a few circuits — trading off the load of an EV
charger and a clothes dryer, for example — retrofits such as a smart breaker can
fit the bill.

If you’re not in a rush, the next decade or so should see a new generation of
smart meters preloaded with software to communicate and control your devices.
States such as New York are already rolling them out. Hertz-Shargel of Wood
Mackenzie expects most homes will end up with smart meters rather than smart
panels as everyone from Sense to Span jostles to partner with utilities.

If it’s probably only a matter of time before millions of people can control
their home’s electricity from a smartphone, how long will we have to wait for
this future?

“We’re years out,” says Hertz-Shargel, “but not ten years out.”

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