Public Sector Electric Efficiency Programs (Illinois)

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Last modified on February 12, 2015.

Financial Incentive Program

Place Illinois

Name Public Sector Electric Efficiency Programs
Incentive Type State Rebate Program
Applicable Sector Fed. Government, Institutional, Local Government, Schools, State Government
Eligible Technologies Boilers, Central Air conditioners, Chillers, Custom/Others pending approval, Energy Mgmt. Systems/Building Controls, Furnaces, Heat pumps, Lighting, Lighting Controls/Sensors, Motor VFDs, Motors, Refrigerators, Water Heaters, LED Exit Signs, Vending Machine Controls, Commercial Refrigeration Equipment, Food Service Equipment, Geothermal Heat Pumps, Tankless Water Heaters, LED Lighting
Active Incentive Yes
Implementing Sector State/Territory
Energy Category Energy Efficiency Incentive Programs, Renewable Energy Incentive Programs
Amount Standard Incentive Program: Varies by technology

Custom Incentives: $0.12 per annual kWh savings
Natural Gas Custom Incentives: $3 per annual therms savings

Equipment Requirements Vary by measure
Start Date 2008-06-01

Funding Source Illinois Energy Efficiency Portfolio Standard (EEPS) surcharge for ComEd, Ameren subsidiary customers

Maximum Incentive $300,000 per location

Total incentive may not exceed 75% of project cost (equipment + labor) or 100% of incremental measure cost

Program Administrator Illinois Department of Commerce and Economic Opportunity

References DSIRE[1]


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 many lighting, refrigeration, HVAC, and motor efficiency improvements. Custom rebates and grants are available for some 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 $50,000 or less are provided in the form of a rebate and incentives of $50,000 or more are provided as grants. Visit the DCEO Energy Efficiency web site for rebate applicant relevant information and materials. Public applicants may seek assistance in paperwork submission from DCEO's Application Assistance Providers (AAPs).

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: public entities can receive up to $0.12/kilowatt-hour (kWh). Natural gas customers can receive up to $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 $50,000 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:

  • Fuel switching
  • Projects that replace existing equipment with like equipment
  • Demand response measures that do not lower overall energy consumption
  • Measures installed or receiving funding under another utility, DCEO, or Clean Energy Community Foundation incentive program
  • Custom projects with paybacks longer than the equipment life
  • Used equipment

The program has completed its fourth year (June 1, 2011 to May 31, 2012). The incentive amounts were increased during the third, fourth, and fifth years. Measures installed or costs incurred outside of this time period are not eligible for incentives. Please consult the program web site for additional details on program eligibility and application requirements.

<metadesc> Public Sector Electric Efficiency Programs: energy incentive program. </metadesc>

Incentive Contact

Contact Name Public Sector Energy Efficiency
Department Illinois Department of Commerce and Economic Opportunity
Division Bureau of Energy and Recycling
Address 620 East Adams Street
Address 2 Attn. PSEE
Place Springfield, Illinois
Zip/Postal Code 62701-1615
Phone (217) 785-2863
Fax (217) 785-2618
Contact Name Andrea Reiff
Department Illinois Department of Commerce and Economic Opportunity
Division Bureau of Energy and Recycling
Address 620 East Adams Street
Place Springfield, Illinois
Zip/Postal Code 62701


Authorities (Please contact the if there are any file problems.)

Authority 1: § 220 ILCS 5/12-103
Date Effective 2007-08-27
Date Enacted 2007-08-27

  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency (DSIRE) accessed 2010-05-21" Cite error: Invalid <ref> tag; name "DSIRE" defined multiple times with different content