The Hidden Costs of an Outdated Electrical System

An outdated electrical system costs more than you might think. Beyond flickering lights and tripped breakers, older systems can negatively impact your wallet, property value, safety, and peace of mind. In this article, we’ll explore the true costs of an outdated electrical system, from energy inefficiency to safety risks and more. 

What Is an Outdated Electrical System?

A home’s electrical system typically consists of a service panel, wiring, outlets, switches, and fixtures. An outdated system will have components that are not up to current safety standards and can’t meet the demands of modern electrical needs. 

Older electrical systems commonly have problems with wiring and panels. Many homes built in the 1960s and 70s have aluminum wiring, which is now known to be a major fire hazard. Outdated systems with older electrical panels may also fail to prevent dangerous power surges, increasing the risk of fire.

Signs Your Electrical System is Outdated

If your home is over 40 years old and has never been updated, it likely has an outdated electrical system. However, even homes built before that cut-off can have outdated electrical components as well.

Below are some telltale warning signs that it’s time to update your electrical system: 

• Flickering or dimming lights 
• Frequent blown fuses, tripped breakers, or power surges
• Switch plates or electrical outlets feel hot to the touch 
• Smoking or scorched electrical outlets 
• Buzzing, or sizzling sounds emitting from the outlets 
• No GFCI (ground fault circuit interrupter) outlets 

If you are ever unsure whether your electrical system is outdated, the safest choice is to have a professional electrician inspect it just in case. They will identify any outdated components and help you find a solution.

5 Hidden Costs of an Outdated Electrical System

Having an outdated electrical system can have costs that extend far beyond the expense of updating it. We explore these in greater detail below. 

1. Energy Inefficiency

Outdated wiring and older electrical components are less energy efficient. This can lead to energy waste and higher electricity bills, which can add up significantly over time. 

Outdated systems also lack the infrastructure to support modern energy-saving solutions like smart lighting. Smart lighting systems are dimmable and automatically turn off and on using motion sensors or pre-programmed times. This reduces energy consumption, which can lead to lower electricity bills. 

By modernizing your electrical system, you can improve safety, reliability, and unlock potential energy bill savings. 

2. Decreased Home Value

Decreased home value is a potential cost of an outdated electrical system that is often overlooked. Outmoded electrical work can lower a home’s resale value, deter potential buyers, and ultimately make it harder to sell. 

Plus, many of today’s buyers are interested in modern amenities and features. An outdated electrical system may not be able to support smart home features or high-tech appliances that people want in their homes. 

3. Higher Insurance Premiums

Outdated wiring poses many safety risks. Many insurance companies may charge higher premiums to compensate for potential property damage or liability costs if a home has unsafe electrical wiring. They can also refuse to insure you if the risk is high enough, which can lead to financial trouble down the line if a fire does happen. Every company is different, but this is a common cost of neglecting to update outdated electrical systems.

4. Damage to Appliances

Outdated electrical systems can cause power surges or a sudden increase of electrical voltage. Frequent power surges can permanently damage and shorten the lifespan of essential appliances, including refrigerators, washing machines, dishwashers, and more. These appliances are expensive to repair or replace. 

5. Risk of House Fire 

The most significant hidden cost of an outdated electrical system is the risk of an electrical fire. Every year, 46,700 home fires are started by electrical causes, resulting in injuries and property damage costs of $1.5 billion¹. Many of these fires are caused by issues with an outdated electrical system. 

This multi-dimensional cost can include your entire home and everything in it, the financial burden of rebuilding, and the safety of your loved ones, which is why the importance of electrical inspections and upgrades cannot be overstated. 

Protect Your Home and Schedule a Residential Electrical Inspection Today

Your home and safety are priceless, which is why it’s important to address electrical concerns as promptly as possible. By upgrading an outdated electrical system, you can reduce safety risks, prevent costly emergency repairs, and improve your home’s functionality and value in the long run. 

At Schafer Electric, we value your home’s safety just as much as you do. We have years of experience providing the North Bay with comprehensive residential electrician services, and safety is always at the forefront of everything we do. Contact us online or call (707) 545-3300 to schedule a home electrical inspection today.

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