California’s electricity bills are about to get lighter—automatically. Governor Gavin Newsom has confirmed that in October 2025, more than 11.5 million households will receive the California Climate Credit, an automatic refund applied directly to utility bills. The program, part of a long-term $60 billion clean energy transition plan, gives residents immediate financial relief while steering the state toward a greener future.
What Is the California Climate Credit?
The Climate Credit is a statewide utility bill rebate designed to return money collected through California’s Cap-and-Invest program, which limits carbon emissions and funds renewable energy projects. Instead of sending checks, the credit is applied directly to electricity bills, reducing what families and small businesses owe.
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This fall’s credit comes on top of the April 2025 rebate, meaning the average household will have received about $198 in relief this year.
How Much Will Households Receive?
While most households will see a discount of $56–$81, the actual amount varies depending on utility provider and consumption. Some cases may fall as low as $35, while others could climb as high as $259.
Small businesses also qualify, with the state allocating an extra $60 million to ensure they benefit from this round of credits.
| Household/Business Type | Approximate Credit |
|---|---|
| Most residential customers | $56–$81 |
| Lower range | $35 |
| Higher range | $259 |
| Small businesses | Statewide pool of $60M in credits |
How the Refund Will Be Applied
The best part? No applications, no forms, no hassle. If you’re a customer of a participating electricity provider, the refund will automatically appear as a line item on your October bill.
This streamlined approach avoids the paperwork that has bogged down other relief programs and ensures broad participation.
Why It Matters
California has one of the highest costs of living in the country. While $61 won’t pay the rent, it can help families cover groceries, gas, or offset part of their rising energy bills. In an inflationary environment, every bit counts.
Beyond the immediate savings, the Climate Credit represents something bigger: a shift to clean energy that includes everyday residents. By rewarding households during the transition, the state is trying to show that moving away from fossil fuels doesn’t have to mean higher costs for consumers.
FAQs:
What has Governor Gavin Newsom announced?
More than 11.5 million households in California will receive automatic Climate Credit refunds on their electricity bills in October 2025.
Why is the state issuing these refunds?
They are part of the California Climate Credit, funded by the Cap-and-Invest program to ease bills while supporting clean energy.
How much will each household receive?
On average, around $61, though the amount ranges from $35 to $259 depending on your provider and usage.
