How to budget for a complete house rewiring project

Electrical systems are the lifeblood of modern homes, powering everything from lighting and heating to appliances and entertainment devices. Over time, however, these systems can become outdated, potentially posing safety risks and reducing energy efficiency. If your home is in need of a complete rewiring, it’s essential to plan and budget for the project carefully. In this article, we will guide you through the process of budgeting for a complete house rewiring project to ensure that your home remains safe and up to code.

Assessing the Scope of the Project

The first step in budgeting for a complete house rewiring project is to assess the scope of the work that needs to be done. Start by creating a comprehensive list of all the electrical components in your home, including outlets, switches, fixtures, and appliances. Note their age, condition, and whether they meet current electrical codes and safety standards.

Next, consider any specific requirements or upgrades you want to incorporate into your rewiring project. For instance, you might want to install additional outlets, upgrade to energy-efficient lighting, or incorporate smart home automation features. These choices will impact the overall cost, so it’s essential to clarify your objectives from the outset.

Hiring a Professional Electrician

House rewiring is not a DIY project. It requires the expertise of a licensed and experienced electrician. When budgeting for the project, factor in the cost of hiring a professional. Obtain quotes from multiple electricians in your area to get a better idea of the average cost for your specific project.

Keep in mind that while it may be tempting to choose the cheapest option, quality and safety should be your top priorities. A reputable electrician will ensure that the work is done correctly, adhering to all local electrical codes and safety regulations, which is essential for the safety of your home and family.

Materials and Wiring

The type of wiring materials used in your project can significantly impact the overall cost. The two most common types of residential wiring are copper and aluminum. Copper wiring is considered the gold standard for electrical systems due to its conductivity and durability. It’s also more expensive than aluminum wiring. Aluminum wiring is a more budget-friendly alternative, but it may require special connectors and maintenance to prevent issues like corrosion.

In addition to wiring materials, consider the cost of electrical boxes, outlets, switches, lighting fixtures, and other components. Upgrading to energy-efficient LED lighting and modern electrical fixtures may increase your upfront costs but can lead to long-term energy savings.

Permits and Inspections

House rewiring projects typically require permits and inspections to ensure that the work is done safely and up to code. The cost of permits and inspections varies depending on your location and the extent of the project. It’s essential to budget for these costs and factor in the time it may take to obtain permits and schedule inspections.

Hidden Costs and Contingency

House rewiring projects often uncover hidden issues that need to be addressed, such as outdated or damaged electrical systems, faulty wiring, or insufficient grounding. It’s wise to budget for unforeseen costs and include a contingency fund in your budget. A common rule of thumb is to set aside 10-15% of the total project cost for contingencies.

Time and Labor

Rewiring an entire house is a labor-intensive process that can take several weeks to complete, depending on the size of your home and the complexity of the project. Electricians typically charge for their time and labor on an hourly or per-project basis. Ensure that your budget accounts for the labor costs associated with your rewiring project.

Financing Options

If the cost of a complete house rewiring project is beyond your immediate budget, explore financing options. Some electricians offer financing plans, and there may be government incentives or rebates available for energy-efficient upgrades. Additionally, you could consider a home improvement loan or a home equity line of credit (HELOC) to cover the costs.


Budgeting for a complete house rewiring project is a crucial step in ensuring the safety and functionality of your home’s electrical system. By carefully assessing the scope of the project, hiring a professional electrician, choosing the right materials, accounting for permits and inspections, and setting aside a contingency fund, you can create a realistic budget that will help you navigate the process smoothly.


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