California, September 27, 2025
News Summary
More than 11.5 million California residences are set to receive automatic refunds through the California Climate Credit program, providing over $700 million in financial relief on electric bills starting this October. The initiative will benefit households with average refund amounts around $61, while also supporting small businesses. The program, part of the state’s Cap-and-Invest initiative, has allocated significant funds for climate projects and has seen California reduce greenhouse gas emissions by 20% since 2000, while fostering economic growth.
California households will soon see financial relief on their electric bills as more than 11.5 million residences are set to receive automatic refunds through the California Climate Credit program this coming October. The total payments for residential customers will surpass $700 million, providing much-needed assistance for energy costs.
The average credit amount per household will be approximately $61, with refund amounts ranging from $35 to $259. Most households are expected to receive between $56 and $81. Additionally, qualifying small businesses will receive around $60 million in total refunds, expanding the benefits of this program beyond residential customers.
This upcoming refund follows a similar credit distributed in April 2025. Households that received the April credit can anticipate that their average total refund for the year will amount to $198 per customer.
Recently signed legislation is expected to enhance future credits by allocating up to $60 billion to the electric Climate Credit through 2045. Although the precise amounts of future refunds have not yet been disclosed, state projections indicate that these changes will lead to increased refunds starting next year.
The refunds are a component of California’s Cap-and-Invest Program, which is managed by the California Air Resources Board. This initiative not only provides financial relief but also funds various climate-related efforts. The Cap-and-Invest Program has dedicated $33 billion toward projects such as affordable housing near job centers, high-speed rail, and zero-emission transportation projects in underserved communities. These efforts have resulted in the creation of over 120,000 jobs and have contributed to a significant reduction in carbon emissions, amounting to millions of tons.
California has made substantial progress in reducing greenhouse gas emissions, with a 20% decrease since the year 2000. At the same time, the state’s economy has expanded significantly, with its GDP growing by 78%, establishing California as the world’s fourth-largest economy. In 2023, approximately two-thirds of the state’s electricity was generated from clean energy sources, with the electrical grid managing to operate on 100% clean energy for parts of almost every day of the year.
Since its inception in 2014, the California Climate Credit program has provided a total of $14.6 billion in bill refunds to residential utility customers. Refunds from this program are issued biannually, occurring in April and October, and are automatically credited to eligible customers’ bills. Customers of PG&E, San Diego Gas & Electric, Southern California Gas Company, and Southwest Gas are eligible to receive these credits. If customers do not see the credited amount on their bills, they are encouraged to contact their utility provider for assistance.
Frequently Asked Questions
What is the California Climate Credit program?
The California Climate Credit program is initiated to provide refunds to residential utility customers as a part of California’s Cap-and-Invest Program, aimed at reducing greenhouse gas emissions and funding climate initiatives.
How much will California households receive in refunds?
Households will receive automatic refunds ranging from $35 to $259, with most households expected to receive between $56 and $81 in October 2025.
When will the refunds be credited to bills?
Refunds from the Climate Credit program occur twice a year, in April and October, and are automatically credited to eligible customers’ bills.
Who is eligible for the Climate Credit program?
Residential customers of PG&E, San Diego Gas & Electric, Southern California Gas Company, and Southwest Gas are eligible for these credits.
What should customers do if they don’t see the credits on their bill?
Customers who do not see the credited amount on their bills are advised to contact their utility provider for assistance.
| Feature | Details |
|---|---|
| Number of Households Receiving Refunds | Over 11.5 million |
| Total Payments to Households | More than $700 million |
| Average Credit Amount per Household | Approximately $61 |
| Refund Amount Range | $35 to $259 |
| Most Common Household Refund | Between $56 and $81 |
| Small Business Refund Total | Approximately $60 million |
| 2025 Average Total Refund | $198 per customer |
| Climate Credit Program Funding through 2045 | Up to $60 billion |
| Total Climate Credit Program Refunds Since 2014 | $14.6 billion |
Deeper Dive: News & Info About This Topic
- Fox40 News
- Wikipedia: Electricity in California
- Los Angeles Times
- Google Search: California electricity refund 2025
- KSBY News
- Encyclopedia Britannica: California electricity
- LAist
- Google News: California electricity refund
- Palisades News
- Google Scholar: California Climate Credit
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