How Selected Households Can Save on Utility Bills
Bernard Reynolds
Published Dec 21, 2025
California has a program called the California Climate Credit that helps residents save money on their utility bills. This credit is given as a discount directly on your electricity or natural gas bill with no extra paperwork needed.
What Is the California Climate Credit?
The California Climate Credit is part of the state’s effort to fight climate change. The money for this credit comes from the Cap-and-Trade program.
In this program, big companies that pollute the environment must buy permits to release greenhouse gases. The state uses the money from these permits to help people pay their utility bills.
About 80% of the money collected is shared among residential customers, giving most households in California some financial relief.
Who Gets the Credit?
You qualify for the California Climate Credit if you are:
- A household or small business with California’s main utility companies, such as PG&E, Southern California Edison (SCE), or San Diego Gas & Electric (SDG&E)
- A customer with solar panels
- A school or non-profit organization that gets credits on electricity bills
Is There Any Paperwork Needed?
No paperwork is needed to get the California Climate Credit. If you are eligible, the discount will be automatically applied to your utility bill.
When Are Credits Given?
- Electricity bills: Credits appear in April and October.
- Natural gas bills: Credits appear in April only.
How Much Money Do You Get?
The amount of credit varies depending on your utility company:
- PG&E: $116.46 per year ($58.23 in April, $58.23 in October)
- Southern California Edison (SCE): $112.00 per year ($56.00 in April, $56.00 in October)
- San Diego Gas & Electric (SDG&E): $162.76 per year ($81.38 in April, $81.38 in October) – this is the highest among the three major utilities
- Pacific Power: $518.72 per year ($259.36 in April, $259.36 in October) – this is the largest amount
Summary
The California Climate Credit is designed to help relieve some costs for households and businesses as the state works towards a cleaner environment.
It is automatically applied and helps many Californians reduce their electricity and natural gas bills every year.
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Find out if you're eligible for more housing support here!
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