More than 11.5 million households in California will receive automatic refunds on their October electricity bills, according to an announcement from Governor Gavin Newsom. The refunds are part of the California Climate Credit program and are expected to average $61 per customer.
The state plans to distribute over $700 million in payments for residential electric customers and $60 million for qualifying small businesses this October. An identical credit was provided earlier this year in April, bringing the average annual refund for most Californians to $198.
Governor Newsom stated, “Millions of California families will see money back on their electricity bills in October – and that refund will be even bigger next year thanks to new laws I signed last week. Up to $60 billion will go back in your pockets, cutting your electric bills while we keep our historic momentum transitioning away from polluting fossil fuels.”
Since its launch in 2014, the Cap-and-Invest program has returned $14.6 billion in bill refunds to residential utility customers. In 2025 alone, a total of $2.4 billion is being provided through credits: $1.4 billion for electric customers, $1 billion for natural gas customers, and an additional $122 million for small businesses.
Refund amounts vary by household but typically range between $56 and $81 this October, with overall amounts spanning from $35 up to $259 depending on circumstances. Californians can check specific refund amounts online.
No action is required by residents to receive the refund; it is automatically applied as part of the California Climate Credit managed by the California Air Resources Board.
Beyond bill credits, the Cap-and-Invest program has also supported climate initiatives with investments totaling $33 billion since inception. These projects have created more than 120,000 jobs and reduced carbon emissions across the state by supporting affordable housing near job centers, developing high-speed rail infrastructure, and increasing zero-emission transportation options in underserved areas.
State officials note that greenhouse gas emissions have dropped 20% since 2000 while California’s GDP has grown by 78%, making it the world’s fourth largest economy during that period. In terms of clean energy production, two-thirds of California’s power came from clean sources in 2023—the highest level achieved among major global economies—and parts of each day have seen electricity supplied entirely from clean sources throughout this year.
Battery storage capacity has expanded significantly under Governor Newsom’s administration—now exceeding 15,000 megawatts—and more than 25,000 megawatts of new resources have been added to the grid since he took office.
