Unveiling the Surprising Costs of ADU Electrical Upgrades

Unveiling the Surprising Costs of ADU Electrical Upgrades

Investor · Santa Clara, CA · Member since 2016 · 9 posts · 6 votes

Hey there, homeowners looking to add an ADU! Gather 'round and let me regale you with the epic tale of our electrical upgrade adventure. It's a story filled with trenching, tricky licenses, and unexpected expenses. Buckle up, because this electrifying tale is about to take you on a hilarious rollercoaster ride!

So, picture this: our house needed an upgrade from a measly 100A electrical connection to a powerful 200A. But here's the kicker - our electrical junction box was chilling on the other side of the street, which meant we had to get down and dirty with some trenching. Goodbye, manicured lawn dreams!

Now, we had two options on the table: pay PG&E, the electric company, to do the upgrade for us, or hire our trusty contractor to tackle the task. Simple, right? Well, not quite. Turns out, this upgrade required a contractor with a fancy Type-A license because it involved work on city streets. Apparently, a general contractor license wasn't going to cut it. Who knew being a homeowner would require us to decipher contractor hieroglyphics?

Being the savvy and budget-conscious homeowners we are, we decided to get multiple bids. But let me tell you, finding a builder for a small project like this was like trying to teach a cat to tap dance - nearly impossible! It seemed like all the big contractors were too busy for us, snubbing their noses at anything below the $100k mark. Ouch!

But fear not, my friends, for there were two intriguing options before us. Option one: the good ol' open pit trench work. This involved digging a two-feet-deep trench across the street and laying the necessary conduit and wires. Option two: the flashy new kid on the block, trenchless technology. With this marvel of innovation, special machines would drill a horizontal hole in the ground, magically avoiding the need for a deep trench. And to sweeten the deal, it was 50% cheaper than trenching!

Ah, but here's where the fun really begins. Little did we know, this modern marvel came with its own set of quirks. Cue the dramatic music! Dun dun dun! It required a hefty $15k camera inspection both before and after the cabling, just to ensure we weren't inadvertently wrecking any existing pipes or sewers. Surprise, surprise! Nobody mentioned this little detail until we received quotes from three different companies. Oh, and guess what? PG&E also charged us a cool $8k for their own inspection, thanks to those county requirements. Isn't life just full of pleasant surprises?

After two months of back-and-forth, it finally hit us like a bolt of lightning: trenchless wasn't economically viable for our situation. We had to wave goodbye to our dreams of an effortless upgrade and embrace the trenching with open arms (and shovels).

But wait, there's more! In our quest for electrical enlightenment, we discovered some fascinating tidbits. Turns out, the quote from PG&E for trenching was the lowest cost we could find. However, we soon realized that a whopping 40% of that cost was due to taxes and fees that the county demanded PG&E to pay. It's like a never-ending cycle of taxes, fees, and more taxes! Who knew upgrading utilities could be such a financially taxing experience?

Despite the chaos and unexpected expenses, there was a silver lining in our electrifying escapade. PG&E assigned us a superhero-like project manager who guided us through the entire process. She was responsive, patient, and even willing to explain the intricate details when we bombarded her with questions. Hallelujah! Thanks to her, the work is finally complete, and we can move forward with our ADU project. Phew!

So, my fellow ADU builders, take heed of the lessons from our wild journey. And to all you investors analyzing the cost of rehab for residential properties, here's a tip: overhead power lines are a much cheaper upgrade option than going underground. Trust me, you'll save yourself from a shocking financial ordeal!

Now, go forth, brave homeowners, and may your ADU dreams be electrifyingly successful (without the need for excessive trenching)!

Note: Remember, this story has been spiced up with humor and creativity to keep you entertained. Always consult professionals and follow the appropriate guidelines for your specific situation. Happy home improvement adventures!

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Rental Property Investor · Concord, NC · Member since 2016 · 1k+ posts · 3k+ votes
3y

Summary - There are a couple options for laying cable. Trenching and drilling. Construction is expensive. 

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  • Rental Property Investor · Concord, NC · Member since 2016 · 1k+ posts · 3k+ votes
    3y

    Summary - There are a couple options for laying cable. Trenching and drilling. Construction is expensive. 

  • Severna Park, MD · Member since 2013 · 7k+ posts · 7k+ votes
    3y

    My county just passed legislation to allow unattached ADU's . Up to 800 sq ft . "to create affordable housing " So we ran the numbers , Permits and fees $30K Build costs at $200 a sq ft . $160K So you are at $190K for a small 2 bedroom . Add 10% cost over run we are at $219 K . Add the re assessment of property taxes $3K a year .

    Rent would have to be $2000 to make it break even . 

    Affordable ?     No  

  • Architect · Raleigh, NC · Member since 2021 · 51 posts · 12 votes
    3y

    @Rajat M.

    You're a great story-teller.  Well done!

  • Investor · Santa Clara, CA · Member since 2016 · 9 posts · 6 votes
    3y

    There are other costs besides builder cost like design, permit, landscaping etc. these add up to be significant. For CA, $200/sq-ft  seem optimistic. But I don’t know your area and laws etc. One big issue I saw was need to pay for a real blue print, that is approved by city to get realistic $/sq-ft numbers. What if your foundation is special, or need to upgrade the electrical panel. These can easily add $$$ to your cost. 

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