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Public Sector New Construction and Retrofit Program

Local Government
State Government
Federal Government
Savings Category 
Water Heaters
Heat Pumps
Air conditioners
Heat recovery
Duct/Air sealing
Building Insulation
Motor VFDs
Other EE
Food Service Equipment
Reflective Roofs
LED Lighting
Tankless Water Heater
Commercial Refrigeration Equipment
Maximum Rebate 

Bonus maximum: $100,000
All incentives: $2.50/sq. ft. (base plus bonus), $300,000, 75% of project costs, and 100% of incremental costs
A single award may exceed $300,000 if the application includes multiple project locations

Program Info
Sector Name 
DCEO - Smart Energy Design Assistance Center
Funding Source 

Illinois Energy Efficiency Portfolio Standard (EEPS) surcharge for Ameren Illinois, ComEd, Nicor, North Shore and Peoples customers

Program Type 
Grant Program
Rebate Amount 

Prescriptive: Varies by technology
Custom: $0.08/kWh or $1/therm saved
Breakthrough exterior lighting equipment: $0.30-$1.30/kWh saved (exterior Cold Cathode,
Induction and LED fixtures operated for greater than 4,380 hours per year)
Interior Cold Cathode, Induction and
LED fixtures: $0.60 per reduced watt


The Illinois Energy Now programs are subject to the State appropriation process, and while the Department can accept and review applications, it will not able to award funding, issue Notices to Proceed, or execute/modify grants until a State budget is finalized. See DCEO's website for the latest information.

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). As part of this larger program, the DCEO offers public sector grants for new construction and major renovation projects that exceed 15,000 square feet and produce electrical or natural gas savings through efficiency improvements in buildings, equipment, and processes. The program is available to local, state, and federal governments; public school districts; community colleges; and universities that receive electricity distribution service from Commonwealth Edison, Ameren Illinois, Nicor Gas, Peoples Gas, or North Shore Gas. This includes customers that purchase energy through an alternative supplier.

Both prescriptive and custom incentives are available. For prescriptive incentives, the building must meet the state building code, and incentives are available for measures that exceed the code. Prescriptive New Construction Incentives are available for specific strategies on a prescribed measure-by-measure basis. Custom New Construction Incentives are available, up to $0.08/kWh saved and $2.00/therm saved, for beyond-code facility design improvements. The Base Incentive rate for the Custom New Construction Program is $0.08 per kWh saved and $2.00 per therm saved for beyond-code facility design improvements.

Buildings seeking LEED certification may also be eligible for a bonus incentive, based on the percentage of beyond energy cost savings. The maximum bonus incentive is $100,000.

Incentives are limited to 100% of the incremental measure cost, 75% of the project cost, and $300,000 per project depending on the level of efficiency improvement. It should be noted that DCEO reserves the right to change incentive amounts and negotiate grant amounts.

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 website for additional details on program eligibility and application requirements. Pre-approval is required to reserve funding and ensure eligibility and should be done when the design is 100% completed.