California Announces Automatic Refunds for Electric Bills

Solar panels and wind turbines in California landscape.

California, September 27, 2025

News Summary

In October, over 11.5 million California households will benefit from automatic refunds on electric bills totaling over $700 million through the California Climate Credit program. The average refund per household is expected to be around $61, with variations from $35 to $259. Recently passed legislation aims to enhance these credits significantly, contributing to job creation and environmental sustainability while supporting various climate initiatives in the state.

California will see over 11.5 million households benefit from automatic refunds on their electric bills through the California Climate Credit program this October. The total refunds for residential customers are anticipated to exceed $700 million, with individual credits averaging around $61.

Qualifying small businesses are also set to receive financial assistance, totaling approximately $60 million. The refund amounts will vary, ranging from $35 to $259 per household. However, most families can expect their refunds to be between $56 and $81.

In addition to this October’s credits, households had previously received a similar benefit in April 2025, which brings the expected average total refund for the year to $198 per customer. Recent legislation, signed into law last week, aims to augment these credits in the future, with up to $60 billion allocated to the electric Climate Credit through 2045.

The specific increase in refund amounts due to the new legislation is yet to be defined, but projections indicate a positive outcome starting next year. These refunds are a part of California’s Cap-and-Invest Program, which is managed by the California Air Resources Board. This program not only focuses on refunding customers but also finances various climate initiatives, including a $33 billion investment in affordable housing near job centers, high-speed rail projects, and zero-emission transportation programs in underserved communities.

Since the program’s establishment in 2014, it has distributed a total of $14.6 billion in bill refunds to residential utility customers. The refunds occur biannually, in April and October, and are automatically credited to eligible customers’ bills, which include residential customers of PG&E, San Diego Gas & Electric, Southern California Gas Company, and Southwest Gas. Customers who do not see the credited amount on their bills are encouraged to contact their utility provider.

The Cap-and-Invest Program has positively impacted job creation and environmental sustainability, producing over 120,000 jobs while contributing to a reduction of millions of tons of carbon emissions. As a result, California’s greenhouse gas emissions have decreased by 20% since 2000, despite a 78% increase in GDP, making it the world’s fourth-largest economy.

In 2023, the state’s electricity generation included two-thirds from clean energy sources, maintaining a grid that operated on 100% clean energy for parts of almost every day of the year.

Chart: Key Features of California Climate Credit Program

Feature Details
Households benefiting 11.5 million
Total October refunds Over $700 million
Average credit per household Approximately $61
Refund range $35 to $259
April 2025 average refund $198 per customer
Future funding Up to $60 billion through 2045
Total refunds since 2014 $14.6 billion
Job creation Over 120,000 jobs
Reduction in greenhouse gas emissions 20% since 2000

FAQ

How many California households will receive refunds through the Climate Credit program?

More than 11.5 million California households will receive automatic refunds on their October electric bills through the California Climate Credit program.

What is the total amount of payments for residential customers in October?

Total payments for residential customers in October will exceed $700 million.

What is the average credit amount per household?

The average credit amount per household will be approximately $61.

What range of refund amounts can households expect?

Refund amounts range from $35 to $259, with most households expected to receive between $56 and $81.

How much have households received in total refunds over the years?

The California Climate Credit program has provided a total of $14.6 billion in bill refunds to residential utility customers since its inception in 2014.

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STAFF HERE SAN DIEGO WRITER
Author: STAFF HERE SAN DIEGO WRITER

SAN DIEGO STAFF WRITER The SAN DIEGO STAFF WRITER represents the experienced team at HERESanDiego.com, your go-to source for actionable local news and information in San Diego, San Diego County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Comic-Con International, San Diego County Fair, and San Diego Pride Festival. Our coverage extends to key organizations like the San Diego Regional Chamber of Commerce and United Way of San Diego County, plus leading businesses in biotechnology, healthcare, and technology that power the local economy such as Qualcomm, Illumina, and Scripps Health. As part of the broader HERE network, including HEREAnaheim.com, HEREBeverlyHills.com, HERECostaMesa.com, HERECoronado.com, HEREHollywood.com, HEREHuntingtonBeach.com, HERELongBeach.com, HERELosAngeles.com, HEREMissionViejo.com, and HERESantaAna.com, we provide comprehensive, credible insights into California's dynamic landscape.

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