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Public Sector New Construction and Retrofit Program

Fed. Government
Local Government
State Government
Savings Category 
Heat Pumps
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

Program Info
Funding Source 

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

Start Date 


Program Type 
State Grant Program
Rebate Amount 

Prescriptive: Varies by technology Custom: $0.08/kWh or $2/therm saved
Breakthrough exterior lighting equipment: $0.30/kWh saved

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). 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. The most recent application period opened June 1, 2012; Applications were accepted until May 15, 2013.

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. Custom incentives are calculated based on the amount of energy saved. The base rate is $0.08 per kWh saved and $2 per therm saved. An incentive of $0.30/kWh is also available for breakthrough equipment or devices for exterior lighting. Only 3% of the program funds will be spent on breakthrough equipment.

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:

  • Renewable energy
  • Projects that replace existing equipment with like equipment
  • Projects for the sole purpose of implementing demand response measures
  • Measures installed or receiving funding under another utility, DCEO, or Clean Energy Community Foundation incentive program
  • Component projects with paybacks longer than the equipment life
  • Used equipment

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.