Public Sector Combined Heat and Power Pilot Program

September 30, 2022


The Illinois DCEO programs are subject to the State appropriation process, and while the Department can accept and review applications, it will not be able to award funding, issue Notices to Proceed, or execute/modify grants until a State budget is finalized.

The Public Sector Combined Heat and Power (CHP) Pilot Program (“Pilot Program”) will provide electric and natural gas savings under the Illinois Energy Now Program by incentivizing the development and operation of CHP projects in public sector applications. The Pilot Program is a performance-based program requiring both estimated performance at the time an application is submitted and measured performance over the first twelve (12) months of operation after the commissioning of the system. The Pilot Program is established to encourage investment in Conventional CHP systems as well as Waste Heat-to-Power (WHP) CHP systems in the public sector.

Project applications under this pilot program must be submitted by 4:30pm Central Time on Friday, November 21, 2014. The intent of this RFA is to have contracts awarded by the DCEO to the successful applicants by February or March, 2015. All successful applicants are encouraged to complete the design and installation of the CHP system, complete the commissioning of the CHP system, and successfully complete the 12 months of operation required to receive the full rebates as expeditiously as possible. The 12 months of operation of the CHP system must be completed by the conclusion of the 2014-2017 three-year approved program plan (May 31, 2017). Project approvals are subject to availability of funds and all other program provisions and limitations apply.  

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Illinois
Incentive Type: Grant Program
Web Site:
Start Date: 07/01/2014
Eligible Renewable/Other Technologies:
  • Combined Heat & Power
  • Heat recovery
  • Other EE
Incentive Amount: 3-Tiered Grant: Design Incentive: $75/kW Capacity Construction Incentive: $175/kW Capacity Production Incentive: $0.06-0.08/kWh of useful electric energy produced.
Maximum Incentive: Total incentive is capped at $2,000,000 or 50% of project cost, whichever is less.
Equipment Requirements: Annual fuel use efficiency must be 60% or greater (HHV).


This program has 1 incentives
Technologies: Combined Heat & Power, Heat recovery, Other EE
Sectors: Local Government, Schools, State Government, Federal Government, Institutional
Parameters: The incentive has a maximum of 75.00 $/kW, The incentive has a minimum of $1000000.00


Name: 20 ILCS 1105/3
Effective Date: 06/28/2013
Name: 220 ILCS 5/8-103 et seq. (subsequently amended)
Effective Date: 10/26/2011


Name: Patrick Brown
Address: 1309 S. Halsted Street
Chicago IL 60607
Phone: (312) 996-5055

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.