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Incentives/Policies for Renewables & Efficiency

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Public Sector Energy Efficiency Programs   

Last DSIRE Review: 06/18/2013
Program Overview:
State: Illinois
Incentive Type: State Rebate Program
Eligible Efficiency Technologies: Refrigerators, Water Heaters, Lighting, Lighting Controls/Sensors, Chillers , Furnaces , Boilers, Heat pumps, Central Air conditioners, Energy Mgmt. Systems/Building Controls, Motor VFDs, Custom/Others pending approval, Led Exit Signs, Vending Machine Controls, Food Service Equipment, Tankless Water Heaters, LED Lighting
Eligible Renewable/Other Technologies: Geothermal Heat Pumps
Applicable Sectors: Local Government, State Government, Fed. Government, Public Schools, Community Colleges, Public Universities
Amount:Standard Incentive Program: Varies by technology
Custom Incentives: $0.12 per annual kWh savings
Natural Gas Custom Incentives: $3 per annual therms savings
Maximum Incentive:$300,000 per location
Total incentive may not exceed 75% of project cost (equipment + labor) or 100% of incremental measure cost
Equipment Requirements:Vary by measure
Funding Source:Illinois Energy Efficiency Portfolio Standard (EEPS) surcharge for Ameren Illinois, ComEd, Nicor, North Shore and Peoples customers
Start Date:06/01/2008
Web Site:
Authority 1:
Date Enacted:
Date Effective:
ยง 220 ILCS 5/12-103

The Illinois Department of Commerce and Economic Opportunity (DCEO) Bureau of Energy and Recycling administers the public sector energy efficiency programs required by the Illinois Energy Efficiency Portfolio Standard (EEPS). Standard rebates and grants are available for equipment with high efficiency including lighting, HVAC, water heaters, variable speed drives, and kitchen equipment. Custom rebates and grants are available for measures not covered by the standard rebates.

The program is available to local, state, and federal governments; public school districts; community colleges; and universities that receive electricity and natural gas distribution service from Commonwealth Edison (ComEd), Ameren affiliated utilities (AmerenCILCO, AmerenIP, and AmerenCIPS), Nicor Gas, Peoples Gas, and North Shore Gas. This includes customers that purchase energy through an alternative supplier.

Pre-approval is required for all grants, custom rebates, and some standard rebate applications in order to verify project eligibility and reserve funding. It should be noted that incentives $150,000 or less are provided in the form of a rebate and incentives of $150,000 or more are provided as grants. Visit the DCEO Energy Efficiency web site for rebate applicant relevant information and materials. 

Standard incentive amounts vary according to equipment type, size, and relative level of energy efficiency. Custom incentives are based on the amount of energy that a given improvement saves annually: based on $0.12 per kilowatt-hour (kWh) savings and $3 per annual therms savings. Custom measures must have a payback period of between one and seven years. Incentive totals may not exceed 100% of the incremental measure cost or 75% of the project cost. In addition, rebates may not exceed $150,000 and grants will not exceed $300,000 per location.

Projects involving only equipment that qualifies for a standard incentive are not eligible for custom incentives. However, projects that involve a combination of standard measures and measures not eligible for standard incentives are permitted to apply under the custom program. In addition, projects involving standard measures with operating hours substantially greater than the typical operation may apply under the custom program. The following measures are specifically defined as ineligible to receive incentives:

  • Projects that repair or replace existing equipment with like equipment
  • Demand response measures that do not lower overall energy consumption
  • Measures installed or receiving funding under another utility or DCEO incentive program
  • Custom projects with simple paybacks longer than the equipment life
  • Used equipment
  • Renewable energy measures
  • Linear LED lamp retrofits for fluorescent fixtures

Please consult the program web site for additional details on program eligibility and application materials.

  Andrea Reiff
Illinois Department of Commerce and Economic Opportunity
Illinois Energy Office
500 W. Monroe Street
Springfield, IL 62701
Phone: (217) 785-0164
Web Site:
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2014 - 2015 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.