You’re Helping to Fight Climate Change
As part of California’s efforts to fight climate change, the California Public Utilities Commission (CPUC) approved the California Climate Credit for eligible utility customers.
The California Climate Credit comes from the State’s Cap-and-Invest Program, which requires polluters to pay for the pollution they produce. The revenue is returned to customers like you to support California’s transition to a cleaner, more sustainable future.
Since 2014, households served by SDG&E have received $1,322 in California Climate Credits from the Cap-and-Invest Program. Statewide, the program has provided more than $15 billion in cumulative benefits to customers.
When Will I Get My Credit?
In previous years, residential electric customers received an electric Climate Credit on their April bill. As part of a statewide mandate to support affordability, the 2026 Electric Residential Climate Credit will be distributed in high-billed months. A CPUC Proposed Decision sets August and September as the distribution months for the investor-owned utilities, and the Proposed Decision is set for a vote of the Commissioners on April 30, 2026. Regardless of which month you receive the Credit, households will receive the same share (i.e., amount) of the benefits of California’s Cap-and-Invest Program. For more information, please visit www.cpuc.ca.gov/climatecredit.
What Do I Need To Do To Receive the Credit?
You don’t need to do anything to receive the credit – it is automatically applied to your bill. The amounts vary among utilities. See what other customers in the state are getting and read some frequently asked questions on the California Public Utilities Commission website.
View a sample bill to help you understand your climate credit.
For more information about the California Climate Credit, visit cpuc.ca.gov/climatecredit
FAQs: Residential Climate Credit
Visit our “Savings Center” section of our website for energy savings tips, rebates and programs as well as bill assistance services.
Community Choice Aggregation (CCA) customers also receive the credit.
FAQs: Small Business Climate Credit
The Small Business Climate Credit is a direct result of the State’s Cap-and-Invest Program that requires polluters to pay for climate pollution. Credits are distributed in April and October each year. Credits appear automatically on your electric bill and are designed to help utility customers during the transition to a more sustainable future.
A small business is defined by the CPUC as any non-residential customer on a general service or agricultural rate, whose usage doesn't exceed 20 kilowatts in more than three months out of the previous 12-month period. In other words, CPUC interprets small business as "non-residential customers with usage that is usually low."
In August 2024, the CPUC modified the Small Business California Climate Credit eligibility criteria. Beginning April 2025, recipients with 100 or more accounts are no longer eligible to receive the Small Business California Climate Credit. Learn more about the eligibility changes resulting from Resolution E-5339.
If you meet these criteria, you'll automatically receive the Small Business Climate Credit.
Electricity customers of SDG&E®, PG&E, SCE, Pacific Power (PacifiCorp), Bear Valley Electric Service and Liberty Utilities (CalPeco Electric) can receive the Small Business Climate Credit if they meet these qualifying criteria.
Small businesses eligible to claim the California Industry Assistance Credit (EITE) may only receive one of the two credits. If you choose to attest for the California Industry Assistance Credit and are deemed eligible, you will stop receiving the Small Business Climate Credit for all electric service agreements associated with that facility.
Each year the State auctions a limited number of emission permits so that California can meet its goal of reducing its overall emissions to 40% below 1990 levels by the year 2030.
Some of the auction proceeds are used by the State to fight climate change, and some are returned to many Californians as a Climate Credit on their utility bills. This program is one of many developed as a result of the Global Warming Solutions Act of 2006, which put California at the forefront of efforts to battle climate change.
The CPUC developed and oversees the Climate Credit program implementation. The credit on your utility bill comes from revenues from the State program, not from the utility; however, the utilities deliver the credit on the State's behalf.
See the CPUC’s webpage on the Cap-and-Invest Program for more information.
In 2026, the Small Business Climate Credit will be distributed semiannually, in April and October.
The credit amount will vary from year to year. Each utility’s amount is based on their allowance auction forecasts and requires CPUC review and approval. In 2026, the Small Business Climate Credit amount is $49.36.
No, the Small Business Climate Credit is only available for electric customers.
No, the Small Business Climate Credit will be a flat dollar amount.