What Is The California Climate Credit

What Is The California Climate Credit?

The California Climate Credit is a state-funded program that provides financial incentives to residents and businesses that reduce their greenhouse gas emissions. The program is part of California’s larger effort to reduce its emissions and meet its climate goals.

How Does It Work?

The California Climate Credit is funded through the state’s cap-and-trade system. In this system, the state sets a limit, or cap, on the amount of emissions that can be released into the atmosphere each year. Companies that exceed their emissions limit must purchase credits from companies who have reduced their emissions and are selling their excess credits. The money from these credits is then used to fund the California Climate Credit program.

Who Is Eligible?

The California Climate Credit is available to all California residents and businesses. To be eligible, you must have paid the utility company for electricity or natural gas usage in the last 12 months.

How Much Can I Get?

The amount of money you can receive depends on your energy usage. The average residential customer can expect to receive an annual credit of $200 to $300, while businesses may receive larger credits based on their energy usage.

How Can I Use The Credit?

The California Climate Credit can be used to offset the cost of energy bills. The credit can be applied directly to your energy bill or used to purchase energy-efficient appliances or other energy-saving products.


The California Climate Credit is a great way for residents and businesses to reduce their energy bills and help the environment. The money from the program helps encourage businesses and residents to reduce their emissions and make environmentally friendly decisions.