Overheating ground wires usually indicate a loose or corroded connection at the grounding bar, causing resistance and heat buildup. Inspect the connection for tightness and corrosion; tighten or clean as needed. Verify the ground wire gauge matches panel specifications to handle. A hot ground wire in a home electrical system represents a serious fault where current is flowing along a conductor intended only for safety, creating a potentially lethal hazard. When you face such an issue, turn off the power supply and refrain from using. Understanding what causes a hot ground wire is our first step. Quick Overview Disconnect all power.