Overview

If you think back a couple of years or even months, your business probably wasn’t at its current level. You’ve grown and changed, which calls your panel capacity into question. The component is at the center of your building’s power distribution, and this blog explains exactly when an upgrade is needed.

Below, Star Electric LLC’s commercial electricians will explain everything you need to know about recognizing the signs of an overloaded panel and what a professional assessment involves.

Highlights

Introduction

Homes and businesses have different panel needs. You can’t use one or the other as a benchmark for what’s safe and effective for a specific setup. Commercial buildings will generally have a higher capacity and more complex load management, but this can all change as you expand.

To avoid inadvertent safety and operational risks, you should have a clear idea of the exact kinds of changes that would warrant a panel upgrade and what capacity means in practical terms.

Why Your Commercial Electrical Panel Matters

Without an up-to-date, working commercial electrical panel, you’d soon face severe limitations. It’d be impossible to grow to the extent you have without the proper infrastructure.

Think of a commercial kitchen during peak hours: If the panel can’t support multiple ovens, fridges, freezers, and exhaust systems running simultaneously, you’d have no business. Or take a retail store: The lighting, POS systems, security cameras, and display coolers all depend on steady, uninterrupted power.

It’s not just how much equipment you’re running, though. It’s also how sensitive that equipment is to even small disruptions. In a clinic or lab, for example, a sudden voltage drop could corrupt digital records or force canceled appointments. So, as you’re expanding your services or modernizing your operations, you need a panel that can keep up to avoid instability.

The Link Between Energy Load and Business Growth

You won’t need to make major system upgrades with every minor change you make, but you’ll reach a point where energy load outpaces what your panel was designed to handle. This just means that the total amperage your equipment draws exceeds the panel’s maximum capacity.

Growth, while often a slow process, has very real electrical consequences. The basic correlation that you, as a business owner, need to understand is that more equipment, more hours, or more operational space almost always means more amperage demand. Whether or not your system can handle that is a question for your electrician.

What Is the Capacity of Your Current Electrical System?

To understand just how close to capacity you currently are, there are a few working pieces to pay attention to. The number of circuits in use, the type of equipment running, and how your energy demand moves throughout the day all contribute to the overall load. Even systems that appear to function normally can be operating at the edge without showing obvious signs.

To get a clear picture of your capacity, an electrician will calculate your total connected load and compare it to the panel’s usable ampacity. They’ll factor in continuous loads, non-coincident loads, and any demand factors outlined by code.

Keep in mind that it’s not just panel space alone that determines capacity. Conductor size, main breaker limits, and load distribution all come into play. Only with that full assessment can you know whether your system is operating safely within range or skimming the edge.

Finding Your Circuit Panel Rating and Limitations

Circuit panel rating is the maximum amount of electrical current your panel can handle. This number is typically stamped on the main breaker inside the panel, commonly 100, 200, or 400 amps for commercial setups. It sets the upper boundary for how much electricity can flow into the system at once, regardless of how many individual circuits are installed.

Limitations are different for each business. For a small auto repair shop, a 100-amp panel might be enough when starting out. But as more lifts, air compressors, and lighting are added, the load can creep dangerously close to that limit. The rating itself doesn’t adjust with growth. Once equipment demand exceeds capacity, the system risks underpowering critical tools.

What’s the Right Electrical Panel Size for a Business?

For a completely new building, professionals look at a few key factors to determine the right electrical panel size. The total load, how that load is distributed, and what kind of growth is expected all influence the final number. Starting with too little capacity locks you into limitations before the doors even open.

One major factor is continuous load, which consists of equipment expected to run for long, uninterrupted periods. This includes refrigeration systems, ventilation fans, or network servers that apply constant pressure.

Here are the other factors that determine the right panel size:

  • Total square footage of the building
  • Number of dedicated circuits needed
  • Type and quantity of large appliances or machines
  • Lighting layout and expected usage
  • HVAC system size and efficiency
  • Peak operating hours and load patterns
  • Power requirements for future expansions

What Electrical Issues Are Connected to Your Panel?

Not all electrical issues are connected to the panel, but many are traced back to it directly or indirectly. The panel is the central distribution point, so if there’s a problem affecting multiple circuits, high-demand equipment, or overall system stability, the panel is a likely suspect.

That said, some issues originate elsewhere, like a loose connection in branch wiring or a damaged appliance. These can cause isolated problems that don’t involve the panel at all. The difference is important, so we’ll look at a few issues that point specifically to a panel-related cause.

Inconsistent Power to Electrical Outlets

Inconsistent power at electrical outlets, with symptoms like dimming lights, devices resetting, or voltage dropping, can point to a problem beyond a single circuit. If this happens in multiple areas, the issue may stem from the panel’s inability to distribute power evenly or maintain stable voltage across all breakers.

This typically involves a loose connection at the main lugs, corrosion inside the panel, or a panel that’s simply overloaded. The fix could be as simple as tightening a connection or as involved as upgrading the panel to handle a higher load.

Electrical Panel Overheating

An overheating electrical panel is a serious warning sign. Heat at the breakers, bus bars, or main lugs usually points to loose connections, corrosion, or circuits pulling more current than the panel is built to handle. This can damage your equipment and potentially cause a fire.

Fixing it will require a full inspection. An electrician will check for hot spots, replace damaged components, and test for load imbalance. Since overloading is a classic symptom of an undersized panel, a full upgrade is usually the safest option.

Breakers Tripping Under Normal Use

If you open up your panel one day and find that a breaker has tripped without anything unusual going on, that’s a sign your system is running too close to capacity. When breakers trip under normal use, meaning no storms or new equipment, you’re likely dealing with a panel that’s stretched thin.

The usual fix starts by confirming the circuit isn’t overloaded or faulty. If it checks out, the issue may lie with the panel itself, either a weak breaker, a poor connection, or simply not enough capacity left. Replacing a breaker might solve it in the short term, but repeated trips mean the panel needs to be upgraded.

What Business Changes Always Require a Panel Upgrade?

There are lots of changes you might make to how and when your business runs. While you can’t say with absolute certainty if you’ll need a new panel until you get a professional inspection, there are cases where you can reasonably expect your current system to fall short.

Here are a few of the more consequential changes:

  • Converting to all-electric heating or HVAC systems
  • Installing commercial-grade kitchen equipment or walk-in refrigeration
  • Adding high-capacity machinery like lifts, welders, or compressors
  • Expanding into adjacent units or doubling floor space
  • Switching from manual to automated systems in production or inventory

Subpanel vs Full Panel Upgrade: Which One Do You Need?

A subpanel adds more circuit space without increasing the total amperage your main panel can handle. It’s often used when your existing panel is full, but your overall electrical load is still within limits. For example, if you’re adding a few outlets and lights in a new office room, a subpanel might be enough.

As we’ve discussed, a full panel upgrade addresses the overall capacity of your electrical system. The difference here isn’t just physical space for breakers, it’s whether the system can handle everything at once. If the issue is load, not layout, a subpanel won’t solve it. You’ll need a new panel sized for the demands you’re already placing on it.

In short, subpanels help with distribution. Full upgrades are about capability.

Call a Trusted Commercial Electrician for an Upgrade

Are you experiencing consistent or intermittent power issues? Or planning to make a major change to your building or operations? A commercial electrician from Star Electric LLC can assess your current setup, recommend the right upgrade, and install panels built to handle your electrical load safely.

Call (334) 425-8548 to schedule an assessment!