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Aluminum wire was used from the mid 1960's to the late 1970's. It is rare to find aluminum wire in homes constructed after 1980. This type of wire can also be found in homes that have had electrical upgrades or electrical work performed in the 1960's and 1970's. Aluminum wire can be identified by its aluminum or silver color. The best place to determine if this type of electrical wiring exists is to check inside the electrical panel box. Look where the electrical wires attach to the breaker screws. Also look at the electrical ground wires because they will be the same material as the hot wires. Solder coated wire also looks silver so be careful not to confuse the two. One is a potential fire hazard and one is not.
Aluminum wiring will be labeled on the exterior of the wire coating. Typically the words aluminum or Alum will be stamped on the exterior wire sheathing. Sometimes it is difficult to locate so the best method to determine if alum wire exists is to look inside the main panel box.
Aluminum wire was manufactured as a less expensive alternative to traditional copper electrical wire. One drawback at the time of its introduction was that it is less efficient in carrying electrical current then traditional copper wire. This issue was circumvented by installing larger wire sizes to carry current through the new wire.
There are several important potential problems associated with this type of electrical wire. The wire can get loose from under its terminal screws and at receptacle connections due to expansion and contraction of the wire. This type of wire is more vulnerable to overheating due to the potential of loose connections both at the terminals inside the electrical panel and at its connections to individual electrical outlets. This type of wire is also softer then copper wire, making it easier to damage or crimp. Damaged or crimped wire can cause heat to build up and eventually lead to a fire. Much of the aluminum wire used was poorly manufactured and of poor workmanship. As a result of its potential to overheat there have been house fires that were directly attributed to the type of wire used in the home.
Due to the potential fire issues manufactures redesigned electrical connectors, switches, and receptacles to better accommodate the expansion and contraction of the wire. These newly designed switches and receptacles were designated by the word CUAL or CO/ALR. The CO/ALR designation is preferable because these switches and receptacles tend to be better engineered to accommodate the wire. Also the electrical panel itself must be specifically designated for use with the wire.
The best and safest approach to aluminum wire is to rewire the home. This is the only true method to elevate the risk associated with the wire. If the wire is kept active then one must make sure that all of the electrical switches, boxes, panel and connections are aluminum compatible. In some municipalities a corrective measure called pig-tailing may be implemented. Pig tailing is the process of connecting copper wire to the end of the aluminum wire. This is not recommended because it creates overcrowding in panel boxes, switches and electrical receptacles. Over crowding has its own set of issues such as overheating. Whenever you have more then expected electrical connections there is an increased risk of fire.
Aluminum wire is not manufactured anymore and with good reason. But one must still be careful because there are plenty of homes that still have active aluminum wire in use. A professional home inspector will look for the presence of aluminum wire while performing your home inspection.