What is the California Climate Credit?

The California Climate Credit is an automatic bill credit provided by the state’s nation leading Cap-and-Invest Program, which generates revenue by requiring polluters to pay for their emissions. Those payments fund the Climate Credit, which is available to both residential and select small business customers, and is intended to offset the increased energy costs utility customers may experience as a result of the transition to a lower-carbon future by the state of California to combat climate change. 

Learn more about the Small Business Climate Credit

What's new in 2026?  

To make bills more affordable when electricity use is typically higher, the California Public Utilities Commission (CPUC) has directed the state’s three large investor-owned utilities (SCE, Pacific Gas & Electric, and San Diego Gas & Electric) to deliver the California Climate Credit to residential customers later this year when your monthly bill may be at its highest due to increased electricity use in warm weather.

What to Expect

• In 2026, you will receive the Climate Credit in August and September to provide greater relief when you need it most. 
• In 2026, you will receive $36 in your August and September bills. Billing periods vary by utility and may not always coincide with a calendar month. If you do not see a Climate Credit on your August or September bill, it will appear the following month.
• No action is required. The credit will be automatically applied to your residential bill.

More ways to help manage your electricity costs

SCE offers a variety of other ways to help you lower your bill and manage monthly costs. 

• Bill discounts for qualifying customers 
• Bill credits for conserving electricity on hot days 

Customers may choose from various rate plan options based on their usage and preferences. Whether it’s choosing the right rate plan, enrolling in discount programs, or spreading costs more evenly throughout the year, we’re here to help.

Explore ways to help manage your costs here.

How will the California Climate Credit impact my bill?

As a valued SCE customer, staying informed about your billing cycle projected costs and any credits or adjustments that may affect your monthly bill is essential. Below is a guide to help you easily interpret your bill projections.

Reviewing Bill Projections

When reviewing bill projections in SCE MyAccount and Budget Assistant for months in which you receive a California Climate Credit, remember that the Projected Next Bill (PNB) cost projections will include the California Climate Credit applied during that cycle.

How Much is the Credit?

For more information about the credit amount, visit CPUC's Climate Credit Page or CPUC's Small Business Climate Credit Page.

When to Expect Normalization

Bill projections will normalize the month after receiving the last California Climate Credit. For instance, if you receive a California Climate Credit in September, your bill will normalize in October's billing period.