QUOTE LINE ITEM · LAST CHECKED NOVEMBER 4, 2026
Electrical panel upgrade on a heat pump quote: what it should say
Quick answer
A quote should say whether your electrical panel has room for the heat pump’s circuit, what electrical work is included (circuit, wiring, disconnect) and whether a panel or service upgrade is needed, by whom and at what price. “Electrical by others” means the cost isn’t in the total.
What a complete quote states
- The new circuit, breaker size, wiring and outdoor disconnect, and that they are in the total.
- Whether the installer checked the panel’s capacity (a load calculation for the panel, not just a glance for an empty slot).
- If an upgrade is needed: panel replacement, service upgrade or a lower-cost alternative such as load management, and its price.
- Who does the work (the installer’s licensed electrician or a subcontractor) and who pulls the electrical permit.
Red flags when it is missing or vague
- “Electrical by others”, “electrical not included” or no mention of electrical work at all.
- A panel upgrade listed as “may be required” with no price.
- One quote includes a panel upgrade and another doesn’t, with no explanation of the difference.
- No mention of an electrical permit.
Three questions to send the installer
- Is all the electrical work, including the circuit, breaker, wiring and disconnect, included in the total?
- Did you check my panel’s capacity with a load calculation? Does this job need a panel or service upgrade, and if so what does it cost?
- If an upgrade is suggested, is there a lower-cost option such as load management or a smaller-amperage heat pump circuit, and who pulls the electrical permit?
Why two quotes differ here
This is often the biggest unexplained gap between two quotes. One installer may assume your panel needs replacing; another may find room for the circuit or propose a device that manages load so no upgrade is needed. Some quotes leave electrical work out entirely and expect you to hire an electrician.
Ask each installer to state what they found and what they assumed. If one says an upgrade is required and another says it isn’t, ask both to explain in writing. A licensed electrician can settle it.
What the sources say
A DOE-funded permitting checklist says inspectors check that “the electrical service rating is greater than or equal to the electrical service load as demonstrated by electrical service load calculations (NEC 220)”, and that a disconnect is installed “within sight from the ASHP”.
A companion DOE-funded factsheet explains that an electrician can use a year of your actual utility demand data (NEC 220.87): if existing load plus the new load is below the panel’s rating, “the electrical panel does not need to be upgraded.” It lists alternatives to an upgrade, including “circuit-sharing devices” and “smart panels or smart circuit breakers”.
NREL and LBNL researchers, presenting at a 2023 DOE review, estimated that “about 21% of U.S. homes have 100-A or less panel capacity”, so this question comes up often.
Cost
DOE-funded researchers (NREL/LBNL, DOE Building Technologies Office peer review, July 2023) wrote that “electrical panel and service upgrades may cost customer $2,000–$30,000.” A January 2025 DOE report (Affordable Home Energy Shot methodology) said panel upgrade costs vary widely, “with higher-end estimates near $5,000 a piece, though service upgrade fees could be more expensive still.” These are national figures from DOE documents, not a quote for your home. Ask each installer for the panel work as its own line.
Sources
- Heat Pump Space Heating Permitting & Inspection Checklist (PDF) (New Buildings Institute for the U.S. DOE, page dated October 2024)
- Home Electrification and Electric Panel Upgrades (PDF) (New Buildings Institute for the U.S. DOE, page dated October 2024)
- Affordable electrification (PDF slides) (NREL/LBNL, DOE peer review, page dated July 2023)
- Affordable Home Energy Shot target-setting methodology (PDF) (U.S. DOE, page dated January 2025)
Holding two or three quotes? Mark Electrical work as Included, Excluded or Unclear for each quote and get one question list per installer. Nothing is uploaded.
Last checked: . Informational only. This is not financial, tax, legal or professional installation advice, and we do not verify any installer’s work.