The answer to 'why is my electrical panel sparking' is that a sparking electrical panel is a serious issue that should be addressed immediately. This could indicate a dangerous electrical problem, such as a short circuit, loose connection, or overloaded circuit. Sparking can lead to electrical fires and poses a severe shock hazard.
Some common causes of a sparking electrical panel include loose or corroded connections, damaged circuit breakers, moisture or water intrusion, and overloaded circuits. Symptoms may include flickering lights, buzzing noises, or burning odors. If you notice any sparking, shut off power to the panel immediately and do not attempt to inspect or repair it yourself.