In October 2025, over 11.5 million California households will automatically receive electricity bill rebates under the California Climate Credit—a major relief effort announced by Governor Gavin Newsom.
This initiative aims to alleviate surging energy costs while reinforcing the state’s clean energy transition. Below, we cover every key figure, eligibility rule, payment breakdown, and timeline so you can know what to expect on your utility bill this fall.
What’s Happening: The October 2025 Rebates
Governor Newsom confirmed that beginning October 2025, Californians will see rebates appear automatically on their electric bills. No action or application is needed.
The program builds on previous credits that have helped households manage energy costs.
These rebates are funded through the state’s Cap-and-Invest (cap-and-trade) program, overseen by the California Air Resources Board (CARB), which monetizes carbon emissions allowances and redistributes value back to ratepayers.
The rebates are part of a newly signed bipartisan legislative package that allocates as much as $60 billion through 2045 for expanded climate credits and energy relief.
Payment Amounts: How Much Will You Get?
Here’s a clear breakdown of rebate amounts and funding:
| Category | Figure / Amount |
|---|---|
| Households eligible | ~11.5 million |
| Total residential payout | Over $700 million |
| Small business allocation | $60 million |
| Average household rebate | ~$61 |
| Range of rebates | $35 to $259 |
| Combined 2025 average (with earlier payment) | ~$198 |
| Legislation funding horizon | Up to $60 billion through 2045 |
Most households will see $56 to $81 on their October electric bills, though some customers on smaller utilities may receive as low as $35–$40, and a few could reach $259 depending on utility and region.
When combined with the previous April rebate, the total average benefit per household in 2025 is expected to be around $198 — providing meaningful relief against rising energy and living costs.
Eligibility & How the Credit Works
- Automatic Qualifier: Residential customers served by investor-owned utilities and Community Choice Aggregation (CCA) programs are automatically eligible — utility types like municipal systems (e.g. Los Angeles Department of Water and Power) may not be included.
- No Application Needed: Homeowners and renters do not need to apply or file forms — rebates will be applied directly to the electricity bill.
- Rebate Timing: The credit appears in the October 2025 billing cycle.
- Business Portion: Eligible small businesses will also receive credits, portioned from the dedicated $60 million allocation.
- Funding Mechanism: Proceeds derive from the Cap-and-Invest / cap-and-trade system, where polluters pay for emissions allowances and part of the revenue is redirected to ratepayers.
Why These Rebates Matter
- Energy Relief — They offer direct savings to help household budgets during periods of rising electricity rates.
- Clean Energy Incentives — By coupling financial relief with climate policy, they foster broader public support for renewable energy transitions.
- Long-Term Commitment — The $60 billion funding over two decades signals sustained state focus on affordability in energy and climate initiatives.
- Equitable Impact — Low- and moderate-income households stand to benefit significantly, reducing energy burdens in critical communities.
What Might Vary Region to Region
- Utility Differences: Rebate amounts depend heavily on which utility (PG&E, SCE, SDG&E, Liberty, Bear Valley, etc.) you are served by.
- Usage Patterns: Larger electricity users might see a proportionally smaller relative benefit, though the absolute rebate is fixed per household category.
- Inclusion of Natural Gas: In some past rounds, climate credits also applied to natural gas bills; October 2025 is focused on electricity, though future credits may expand.
- Future Increases: After 2025, per-household rebates are slated to grow under the new legislation, with more generous credits likely in coming years.
October 2025 marks a major milestone in California’s efforts to balance climate action with economic relief. With $700 million+ in residential rebates and another $60 million for small businesses, the state is sending tangible support to 11.5 million households just when utility costs are rising.
Because the credit is automatic, Californians need only watch their bills in October — no form, no effort, no hassle.
As this program progresses and credits increase by law over time, it sets a precedent: acting on climate doesn’t have to burden households — it can directly benefit them.
If you’re in California with investor-owned utility service, check your October statement: you just might see a welcome discount charging forward.
FAQs
Do I need to apply to get the credit in October 2025?
No. The rebate is automatic for qualifying residential accounts under investor-owned or Community Choice utilities.
How much will my household likely receive?
Most households will see a $56–$81 credit, with the average around $61. Some may receive as low as $35, while a few may reach $259, depending on their utility.
Why is California doing this?
The rebates aim to offset rising electricity costs, support vulnerable households, and align with California’s climate goals using the Cap-and-Invest funding mechanism.