Understanding the California Climate Credit and What’s Changing in 2026

The California Climate Credit reimbursement is shifting from April to the months of August and September when energy customers often have higher electricity bills.

Have you ever looked at your electricity bill and seen the line item that reads, “California Climate Credit?”  It’s one of the state’s key affordability programs funded by California’s Cap-and-Invest Program – . a credit that returns money to customers to help offset energy costs as the state reduces greenhouse gas emissions.

What is the Cap-and-Invest Program?

California’s Cap-and-Invest Program plays a key role in the state’s greenhouse gas reduction strategy. It complements other climate action measures to ensure that California meets its goals most cost effectively. In doing so, the government puts a statewide limit on greenhouse gas emissions via California’s Cap-and-Invest Program.

Essentially, the Cap-and-Invest Program requires large polluters such as corporations and factories to purchase allowances for the carbon they emit. As the gap tightens over time, emissions decline. Through the program, a portion of funds is collected and returned directly to residents and small businesses as the California Climate Credit – making it both a climate solution and cost-relief tool.

What’s Changing in 2026?

This year, the California Public Utilities Commission (CPUC) is making an important change as part of a statewide mandate to support affordability. The April 2026 residential credit has been paused and will now be redistributed during the  months of August and September when energy customers typically have higher electricity bills.

The reasoning behind this is to better support customers when energy costs are at their peak. As the CPUC explains, “Households will receive the same share (i.e., amount) of the benefits,”just at a more impactful time of year.

It’s important to note that Small Business Climate Credits (April and October) and California Industry Assistance (April) remain unchanged.

At Orange County Power Authority (OCPA), we are committed to helping customers navigate changes like these while keeping our rates stable. If you need assistance or have any questions, please visit ocpower.org/contact-us or call 1-866-262-7693.

Thank you for being a part of the OCPA community.

About Orange County Power Authority

The Orange County Power Authority is a not-for-profit public agency that offers clean power at stable rates, significantly reducing energy-related greenhouse emissions and enabling reinvestment in local energy programs. To learn more, visit www.ocpower.org.