How much does it cost to replace a plug? How much does it cost to upgrade my panel? What about an appliance, Tesla Charger or pot lights? There is a short answer and a long answer. In this article we go through some of the most commonly requested services and how much it might cost you to hire an electrician. We explain how much is too much and how cheap is too cheap. Simply put, it can be expensive to pay for home services. You want to ensure you are receiving good value for your hard earned money. You also want to make sure you are not over paying because a contractor is too busy or doesn’t want the job.

Make sure you are hiring a Licensed Electrical Contractor. Contrary to some beliefs, you can’t just hire any licensed electrician to work in your home. They are required to employ a Designated Master Electrician, carry commercial liability insurance, maintain a contractors license from the Electrical Safety Authority and provide WSIB insurance for all of their workers. Click here to read our blog on How to Find a Licensed Electrical Contractor.

The Short Answer

According to Jiffy On Demand an electrical contractor can cost between $90 to $180 per hour. According to HomeStars pricing guide its $65 to $130 per hour. How come there is such a big range? How come there is a discrepancy between sources? Just like many other products and services, you get what you pay for. There can be vast differences between the quality of products used and the quality of work. Does your contractor show up on time? Do they show up at all? Do they present themselves in a professional manner, or do they show up in an old beaten down truck with inadequate tools and missing parts? Are they cleaning up before they leave, or are they damaging your house and property by being careless? If you are about to spend money on maintaining or improving your largest investment, you want to make sure it’s going to be worth it.

Basic Costs

It can be difficult to provide an accurate estimate of how much it will cost to hire an electrician because of the many variables involved. However, here are some rough estimates based on the most common types of electrical services:

• Basic Electrical Repairs: Simple repairs like fixing a faulty switch or outlet can cost between $150-$400. You will often be charged a minimum service call fee to get an electrician out to your job site.
  
• Electrical Installations: Installing a new electrical system or upgrading an existing one can cost between $1,000 and $5,000 or more, depending on the size and complexity of the job. This may include an EV Charger or a new hot tub.
  
• Electrical Inspections: An electrical inspection can cost between $250 and $1,000, depending on the size of the home or building.
  
• Electrical Wiring: Rewiring a home can cost between $10,000 and $30,000 or more, depending on the size of the home and the complexity of the job. You can likely expect to pay anywhere from $8 to $15 per square foot for electrical wiring.
  
• Electrical Panel Upgrade: Upgrading an electrical panel can cost between $2,000 and $5,000, depending on the size of the home and the complexity of the job.

The Long Answer

Demand is one of the main driving factors for prices electrical work. Skilled trades across Canada, especially electricians are in extremely high demand. And it’s only going to get worse. The Canadian Apprenticeship Forum projects we will need almost 165, 000 journeyman before 2025 and over 375, 000 apprentices. There are fewer electricians around these days and even fewer of them open up a contracting business. Some electrical contractors in the GTA are paying electricians up to $70 per hour as of April 2022. Unions are offering even greater renumeration with total compensation, including pensions and benefits, up to $100 per hour. Now if a business is to make any profit on their labour, they are likely charging at least 30-50% more than they are paying their employees. The labour market is extremely competitive for electricians so it’s costing even more for employers to hire and retain qualified journeyman.

Other Factors Driving Cost

• Experience and Expertise: Experienced electricians who specialize in complex installations or repairs will typically charge more than those who are just starting their business. Replacing plugs and switches or installing pot lights are considered basic electrical work. Wiring a complete custom home, installing emergency backup generators or upgrading a panel and service are more complex jobs in the residential sector. There are very few electricians that specialize in programming industrial robotics or automation. This creates an even higher demand for more specialized work which is a major factor driving the costs.
  
• Location: The cost of hiring an electrician can vary depending on where you live. In general, electricians in urban areas tend to charge more than those in rural areas. There are more overhead costs operating in Downtown Toronto vs Mississauga. Toronto has increased travel time from traffic, parking fees and even logistical challenges for carrying and delivering tools parts and materials to the job site.
  
• Type of Service: The type of service you need will also affect the cost. For example, a company that uses drop sheets to protect your flooring, uses brooms and vacuums to clean up, offers a warranty and provides higher levels of customer service will charge significantly more than a fly by night contractor.
  
• Accessibility: While not often discussed, accessibility is a major factor when pricing a job. What we mean by that is the feasibility and difficulty involved in accessing the work area. Installing a device in a small crawl space or attic is much more challenging than working in a wide open garage or utility room. Having to move heavy furniture adds a layer of risk for the contractor and increases the amount of billable time associated with the work.

Quality of Products

All electrical products and devices are required to be CSA approved for use in Canada. Some less reputable companies are ordering bulk pot lights from websites like Alibaba and Amazon that are not approved for use in Canada. The customer is often unaware of what specific brands and products their contractors are using. Some of our competitors are charging a price per pot light that is completely installed, including all wire and materials, for less than what it costs us to buy just the pot light itself. And thats even including our contractor discount.

We often get calls to replace these products because the home owner was not able to pass their inspection from the ESA. Or even worse, the contractor never pulled a permit and the Home Owner was caught and is now on the hook to remedy the situation. If your contractor is installing pot lights for $45 a piece you might want to verify they are in fact using certified products, and that they themselves are licensed and insured.

Shopping Price vs Value

It’s pretty obvious that customers want to get the best products for the best prices. We don’t all want to over pay for a name brand, and we certainly don’t want to over pay for something inferior. Unfortunately when you shop on price alone you will end up with the cheapest supplier. The price can often be a reflection of their quality of product and service. When it comes to electrical devices, it can be very unsafe to your home and family when you install the cheapest product. That doesn’t mean you should over pay either.

It is often recommended to get 3 quotes and go with the middle price. The idea is that the highest bidder doesn’t want the job and the lowest one has under bid it. While this can be true in a general sense, what do you do when all 3 quotes come back in the same ballpark? We suggest you try and gauge the quality of your interaction with the contractor. If they show up in a clean vehicle, dressed in a presentable manner, communicate effectively and generally seem well rounded, that is a good indication they will offer a professional service. If they have taken care of themselves and their equipment it’s a good indication they will take care of you and your home. If they send you a professional quote that is detailed and put together well, it is an indication the rest of their work will be in the same format. In a basic sense, if they take care of the little things, it shows what kind of effort they will put into the bigger things.

An Anecdote on Value

We recently had a return customer solicit our services to install a single pot light. The price per pot light will often go down with more pot lights that you decide to install. Nonetheless, the customer was surprised at the higher price for a single pot light but decided to go ahead since they previously enjoyed our services. They were in a bit of a jam because they had already finished drywalling and painting their ceilings for their renovation.

What the customer did not expect was that we were able to fish the wire for the pot light and have it installed without opening any parts of the ceiling. For all intents and purposes, they never knew we were there. Not all electricians have the skills and experience to complete a task like that without opening the drywall. Fishing wires is often considered an art form. What this meant for the customer, was that despite paying more than they anticipated for installing a single pot light, they saved the money that would have otherwise been required to patch and paint the drywall.

This ultimately lead to an overall greater savings by spending more up front on a capable and qualified electrician. They likely saved over $500-$1,000 by spending $100 more up front. That is a perfect example of why spending your money on greater value can save you money in the long run. Click here to read more about how NSC Electric offers you value for your money. Click here to view more of our services!

In Conclusion

These days, hiring any type of home based service is expensive. Make sure you are finding a reputable contractor who is able to provide good value for your hard earned money. Make sure you are doing your research by checking reviews, getting referrals and asking for detailed information for your job. If you have questions, or are unsure about about certain costs, ask for clarification from your contractor. Your contractor should be able to justify their pricing. Prices can vary based on many factors and it’s important for the home owner to know why so they may make an informed decision on their next purchase.