Does an ADU Need a Separate Electrical Meter?

Short answer: no — a separate meter is not required. But you have three options, and the right one depends on how the ADU will be used. This is one of the most-asked questions in ADU planning, so let's settle it properly.

Option 1: Shared meter (simplest, cheapest)

The ADU draws power through your existing meter — usually via a subpanel. One utility account, one bill, in your name.

• Cost: lowest — panel work and a feeder line, no utility company involvement beyond capacity.
• Billing the tenant: you can't bill actual usage; most owners fold utilities into rent or charge a flat amount.
• Best for: family use, offices, and rentals where "utilities included" pricing is fine.

Option 2: Private submeter (the middle path)

Still one utility account — but you install your own metering device on the ADU's feed, so you know exactly what it consumed.

• Cost: shared-meter cost plus a few hundred dollars of hardware.
• Billing the tenant: you can pass through actual usage. California has rules about how submetered billing must be handled — pass through costs transparently; don't mark them up.
• Best for: landlords who want fair, usage-based cost sharing without utility-company paperwork.

Option 3: Separate utility meter and account (full independence)

The utility — LADWP, Southern California Edison, PG&E, or your local provider — installs a second meter. The ADU gets its own account, and the tenant puts the bill in their own name.

• Cost: highest — utility application, fees, sometimes a new service drop; commonly $3K–$10K+ depending on the utility and site. Timelines run on the utility's calendar, not yours.
• Billing the tenant: it's their account entirely. Zero involvement for you, forever.
• Best for: serious long-term rentals, potential future sale of the unit (where allowed), and owners who never want to think about a tenant's electric bill again.

The honest recommendation

For most rentals, shared meter with a flat utility charge or a private submeter hits the sweet spot of cost and fairness. Spring for the full separate meter when the ADU is a permanent income unit and the one-time cost buys decades of not being the middleman. Whatever you choose, decide during design — wiring for a future separate meter costs little now and a lot later.