National Fire Protection Association (NFPA) NFPA 70: National Electrical Code (NEC)Specific Code References



NEC 404.8(A)(1)

Electrical equipment and wiring supplying more than one occupancy shall be arranged in accordance with the requirements for each occupancy.

NEC 404.12(A)

Electrical equipment and wiring shall not be located outside the occupancy served, except as provided in NEC 404.12(B) through (E).

Interpretation

These code sections indicate that electrical equipment, including distribution panels, must be located within the occupancy they serve. They cannot be located outside the occupancy unless one of the following exceptions applies:

NEC 404.12(B)

Service equipment is located outside the occupancy for specific purposes, such as metering or equipment isolation.

NEC 404.12(C)

Electrical equipment is located outside the occupancy to provide access for maintenance or repair.

NEC 404.12(D)

Equipment is located outside the occupancy as part of an industrial assembly.

NEC 404.12(E)

Other specific exceptions as approved by the authority having jurisdiction (AHJ).In the scenario you describe, the distribution panel would be located in one leased space and used to control power and lighting in an adjoining leased space. This is not permitted under the NEC because the distribution panel is not located within the occupancy it serves (the adjoining leased space).

Additional Considerations



Building Permit Requirements

Many municipalities require a building permit for the installation of electrical equipment. The permit application may be rejected if it includes plans to locate a distribution panel outside the occupancy it serves.*

Insurance Implications: Insurance policies may have specific requirements regarding the location of electrical equipment. If the distribution panel is not located in accordance with the NEC, it may affect the insurance coverage for the building or the businesses within it. Flag for review