Do I need a separate utility meter for my Sacramento ADU?

Hello!

Embarking on an ADU project is an exciting venture, and I’m glad to see you’re thinking through the utility meter question carefully. Let’s break down your concerns and provide actionable insights to help guide your decision.

### 1. Is a Separate Utility Meter Required for an ADU in Sacramento?

In Sacramento, you are not required to install a separate utility meter for an ADU. According to California state law, specifically under SB-13 and AB-68, local jurisdictions like Sacramento cannot mandate separate utility connections or meters as a condition for ADU approval. This means you have the option to extend utilities from your main house to the ADU without installing a separate meter.

**Consideration:** While not required, opting for a separate meter could simplify utility billing if you plan to rent out the ADU, as it allows tenants to manage their own utility usage. However, this comes with added costs and considerations.

### 2. Cost Implications of Installing a Separate Meter vs. Using the Existing One

**Using Existing Meter:**
- **Cost:** Typically, extending existing utilities (water, electricity, gas) to your ADU could cost between $3,000 to $8,000 depending on the distance and complexity of the connections.
- **Pros:** Lower upfront costs, simpler installation process.
- **Cons:** You’ll need to manage utility billing and consumption if renting to tenants, which might require sub-metering solutions.

**Installing a Separate Meter:**
- **Cost:** Installing separate utility meters can be more expensive. For electricity, expect costs around $1,500 to $3,000 for the meter installation alone. Water and gas meters can add another $2,000 to $5,000 each, depending on the utility company’s policies and the distance from the main lines.
- **Pros:** Easier utility management for tenants, potentially higher appeal to renters.
- **Cons:** Higher initial costs, longer installation timeline, possible need for additional permits.

### 3. Impact on Renting Out the ADU

With a single meter, you’ll need to incorporate utility costs into the rent or use sub-metering for tenant billing. Sub-meters can cost between $200 to $500 each and provide a way to track usage more precisely.

With separate meters, tenants can pay directly to the utility companies, making it more transparent and potentially more attractive to renters who prefer to manage their own bills.

### 4. Sacramento-Specific Regulations and Incentives

Sacramento has been supportive of ADU developments as part of its housing strategy. Here are some key points:
- **Permit Fees and Timelines:** Sacramento aims to streamline the permitting process for ADUs, and recent state laws like AB-68 and SB-9 have mandated quicker processing times (60 days once a complete application is submitted). Permit fees for ADUs can range from $1,000 to $3,000, depending on size and complexity.
- **Incentives:** Check for local incentives such as fee waivers or reductions. Sacramento has offered such incentives to encourage ADU construction.

### Tips and Warnings

- **Consult with Utility Providers Early:** Engage with Sacramento Municipal Utility District (SMUD) and local water providers early in your planning to understand specific requirements and timelines.
- **Check Zoning and Building Requirements:** Even though state laws are in place, ensure that your project complies with local zoning ordinances and building codes.
- **Consider Future Needs:** If you’re considering selling your property in the future, having separate meters might make the property more appealing.

### Next Steps

1. **Consult with a Local ADU Specialist:** Given the complexities, consider consulting with a local ADU expert or architect who can assess your specific property and provide tailored advice.
2. **Engage with Contractors:** Obtain quotes from licensed contractors for both utility extension and separate meter installation to understand the full cost implications.
3. **Visit Local Government Offices:** Sacramento’s planning department can offer specific information and guidance on ADU regulations and any local incentives available.

### Resources

- **Sacramento County Planning and Environmental Review:** For the latest on local ADU regulations.
- **SMUD and Local Water Utility:** For detailed utility connection information.
- **California Department of Housing and Community Development:** Offers comprehensive guides on state ADU laws.

By weighing the costs and benefits, along with considering your long-term plans for the property, you’ll be in a strong position to make the best decision for your ADU project. Good luck, and feel free to reach out with more questions as you progress!