California, September 27, 2025
News Summary
Over 11.5 million California households will benefit from automatic refunds on their October electric bills thanks to the California Climate Credit program. This initiative will see total payments surpassing $700 million, offering essential financial relief. While the average credit is projected at approximately $61, amounts will vary, with most households receiving between $56 and $81. Recent legislation aims to enhance future credits and allocate up to $60 billion by 2045, indicating a significant commitment to environmental programs and financial assistance.
California
More than 11.5 million California households are set to benefit from automatic refunds on their October electric bills through the California Climate Credit program. The total payments for residential customers this October will exceed $700 million, providing significant financial relief to many. Additionally, qualifying small businesses will receive approximately $60 million in total credits.
The average credit amount per household is projected to be around $61, but refund amounts will vary. Most households can expect to see credits ranging from $35 to $259, with the majority receiving between $56 and $81. Earlier this year, households received a similar credit in April, which contributes to an average total refund of $198 per customer for 2025.
Recent legislation signed into law aims to enhance future credits, potentially allocating up to $60 billion to the electric Climate Credit through the year 2045. The state projects that changes from this new legislation will lead to increased refunds starting next year, although specific amounts have not yet been disclosed.
Program Background
The refunds are part of California’s Cap-and-Invest Program, which is managed by the California Air Resources Board. This program not only provides residential credits but also funds various climate-related initiatives, including $33 billion dedicated to affordable housing near job centers, high-speed rail projects, and zero-emission transportation efforts in underserved communities.
Since its inception in 2014, the California Climate Credit program has disbursed a total of $14.6 billion in refunds to residential utility customers. The refunds occur biannually, in April and October, and are automatically credited to eligible customers’ bills. Residential customers of PG&E, San Diego Gas & Electric, Southern California Gas Company, and Southwest Gas are eligible for these credits. Customers who do not see the credited amount on their bills are advised to contact their utility provider for clarification.
Environmental Impact
California’s initiatives funded by the Cap-and-Invest Program have led to significant achievements, including the creation of over 120,000 jobs and a reduction of millions of tons in carbon emissions. Since the year 2000, the state’s greenhouse gas emissions have decreased by 20%, while its GDP has grown by 78%, affirming its status as the world’s fourth-largest economy. In 2023, two-thirds of California’s electricity production came from clean energy sources, with the grid successfully operating on 100% clean energy for substantial parts of nearly every day of the year.
| Key Feature | Details |
|---|---|
| Number of Households Receiving Refunds | 11.5 million |
| Total Payments for Residential Customers | Over $700 million |
| Average Credit Amount per Household | Approximately $61 |
| Refund Amount Range | $35 to $259 |
| Average Total Refund for 2025 | $198 per customer |
| Funding for Initiative Projects | $33 billion for affordable housing, high-speed rail, and zero-emission transportation projects |
| Jobs Created | Over 120,000 jobs |
| Greenhouse Gas Emissions Reduction Since 2000 | 20% |
| GDP Growth Since 2000 | 78% |
| Clean Energy Percentage in 2023 | Two-thirds of electricity |
