Is it acceptable for a service panel to be located inside a clothes closet?

Having a service panel located inside a clothes closet is generally considered unacceptable due to safety concerns. The National Electrical Code (NEC) prohibits this practice because it poses a fire hazard. Clothes and other flammable materials, which are often stored in closets, could easily come into contact with the panel, leading to potential ignition if an electrical malfunction occurs. Moreover, access to the service panel must be clear and unobstructed to ensure that it can be reached safely for maintenance or in emergencies. Having a panel in a closet complicates this, as it could restrict access and increase the risk of injury. Thus, regulations prioritize safety and accessibility, leading to the conclusion that service panels should be installed in locations free from such hazards.