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Public Sector Electric Efficiency Programs

Fed. Government
Local Government
State Government
Savings Category 
Heat Pumps
Maximum Rebate 

$300,000 per location
Total incentive may not exceed 75% of project cost (equipment + labor) or 100% of incremental measure cost

Program Info
Funding Source 

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

Start Date 


Program Type 
State Rebate Program
Rebate Amount 

Standard Incentive Program: Varies by technology
Custom Incentives: $0.12 per annual kWh savings
Natural Gas Custom Incentives: $3 per annual therms savings

Illinois Department of Commerce and Economic Opportunity

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.

Other Information 

Vary by measure