A subpanel is an essential electrical component for homes and businesses that require additional circuits, better power distribution, or support for future electrical expansions. If your main electrical panel is overloaded, lacks space for new circuits, or struggles to handle power demands, installing a subpanel might be the best solution.
In this comprehensive guide, we’ll explore what a subpanel is, its benefits, when you need one, and how to install it safely and efficiently.

What is a Subpanel?
A subpanel (also known as a satellite panel or secondary panel) is a smaller electrical panel that extends the main panel’s capacity by distributing power to additional circuits. It functions as a branch of the main panel but doesn’t replace it.
How a Subpanel Works
- The subpanel is wired to the main panel through a feeder breaker.
- It receives electricity from the main panel and distributes it to separate circuits.
- Each circuit has its own breaker to prevent overloading and short circuits.
Unlike the main panel, which connects directly to the utility supply, a subpanel only manages circuits within a specific area, such as a garage, basement, workshop, or newly added home section.
Signs You Need a Subpanel
1. Your Main Panel is Full
One of the most common reasons for installing a subpanel is a lack of available circuit breaker slots in the main panel. Modern electrical needs have increased with the addition of:
- Smart home devices
- Home offices with multiple computers
- High-power kitchen appliances
- EV chargers
- HVAC systems
If your main panel does not have space for additional breakers, adding a subpanel allows you to expand without upgrading the entire panel.
2. You’re Expanding Your Home or Business
If you’re adding new rooms, a home office, or an outdoor workspace, your existing electrical panel may not have enough capacity to support the new load. Installing a subpanel can:
- Distribute power efficiently to different areas.
- Ensure compliance with electrical codes for new additions.
- Reduce circuit overloads, preventing frequent breaker trips.
Subpanels are especially useful for detached structures like garages, barns, guest houses, or rental units.
3. You Need a Dedicated Power Source for a Specific Area
Certain areas of your property may require isolated power distribution for safety and efficiency. A subpanel is useful for:
- Workshops and garages with heavy power tools.
- Home theaters with dedicated AV equipment.
- Basements and attics converted into livable spaces.
A subpanel in these locations allows better circuit separation and reduces electrical noise from other home appliances.
4. Your Breakers Keep Tripping
Frequent circuit breaker trips indicate overloaded circuits, which can lead to:
- Flickering lights when using multiple appliances.
- Sudden power outages in specific rooms.
- Overheating wires, which pose a fire hazard.
If your electrical system cannot handle power demand, a subpanel helps distribute the load more evenly.
5. You’re Installing High-Power Appliances
Certain appliances require dedicated circuits due to high power consumption. Common examples include:
- Electric vehicle (EV) chargers
- HVAC systems
- Hot tubs and pool heaters
- Large kitchen appliances (ovens, refrigerators)
If your current panel lacks space, a subpanel ensures these appliances receive sufficient power without overloading the main panel.
6. You Want to Improve Electrical Safety
An overloaded main panel increases the risk of:
- Breaker failures due to excessive current draw.
- Electrical fires caused by overheated circuits.
- Inconsistent power supply, affecting sensitive electronics.
A subpanel can improve electrical safety by distributing power more efficiently and reducing circuit congestion.
Benefits of Installing a Subpanel
1. Improved Power Distribution
A subpanel helps organize and separate circuits based on location or function, making it easier to manage and troubleshoot electrical issues.
2. Increased Flexibility for Future Expansion
If you plan to add more circuits later, a subpanel provides expansion room without modifying the main panel.
3. Reduced Voltage Drops
If a detached structure (like a garage) is far from the main panel, running power through a subpanel reduces voltage drops, ensuring stable performance for tools and appliances.
4. Enhanced Circuit Control
Subpanels allow localized control over specific areas. For example, if you need to shut off power to a workshop for maintenance, you won’t affect the rest of your home.
How to Install a Subpanel
1. Determine the Right Subpanel Size
Subpanels are available in various amp ratings based on the electrical load:
- 50-amp subpanel – Suitable for small workshops or home offices.
- 100-amp subpanel – Ideal for garages, basements, or large rooms.
- 200-amp subpanel – Used for high-power applications, such as multi-unit buildings or businesses.
The subpanel size should match your electrical needs and comply with local building codes.
2. Choose a Suitable Location
The subpanel should be installed:
- Close to the electrical demand area to minimize wiring costs.
- Away from moisture and flammable materials to prevent hazards.
- In compliance with NEC clearance requirements (typically 36 inches of space in front of the panel).
3. Run Proper Feeder Wiring
The subpanel connects to the main panel via feeder cables, which must be properly rated:
- 6-gauge wire for 50-amp subpanels.
- 2-gauge wire for 100-amp subpanels.
- 2/0-gauge wire for 200-amp subpanels.
A licensed electrician should determine the correct wiring and breaker size.
4. Install a Feeder Breaker in the Main Panel
The feeder breaker supplies power to the subpanel and must match its amp rating. For example, a 100-amp subpanel requires a 100-amp breaker in the main panel.
5. Connect the Neutral and Ground Wires Correctly
- The neutral bus bar in the subpanel must be isolated (not bonded to ground).
- The ground bus bar connects to a separate ground wire.
This setup prevents ground loops and electrical hazards.
6. Label and Test the Subpanel
Each breaker in the subpanel should be clearly labeled for easy identification. Before use:
- Test each circuit to ensure proper function.
- Check for correct grounding and bonding to prevent faults.
Common Mistakes to Avoid
- Installing an oversized subpanel without checking main panel capacity.
- Using undersized wires, leading to overheating.
- Failing to isolate neutral and ground bars, causing electrical hazards.
- Skipping permits and inspections, which can lead to code violations.
Always follow National Electrical Code (NEC) guidelines and hire a professional for safe installation.
Conclusion
Installing a subpanel is a practical solution when your main panel is full, you need additional circuits, or you’re expanding your property. It enhances power distribution, improves safety, and supports high-energy appliances.
If you experience frequent breaker trips, flickering lights, or are planning renovations, a subpanel might be the best option. Consulting a licensed electrician ensures proper installation, compliance with electrical codes, and long-term reliability.