Public Sector Energy Efficiency Programs

September 11, 2022


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 equipment with high efficiency including lighting, HVAC, water heaters, variable speed drives, and kitchen equipment. Custom rebates and grants are available for 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. See program website to verify if funds are available for your utility.

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 $150,000 or less are provided in the form of a rebate and incentives of $150,000 or more are provided as grants. Visit the DCEO Energy Efficiency web site for rebate applicant relevant information and materials. 

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: based on $0.12 per kilowatt-hour (kWh) savings and $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 $150,000 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:

  • 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 web site for additional details on program eligibility and application materials.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Illinois
Incentive Type: Rebate Program
Web Site:
Administrator: Illinois Department of Commerce and Economic Opportunity
Start Date: 06/01/2008
Eligible Renewable/Other Technologies:
  • Geothermal Heat Pumps
  • Refrigerators/Freezers
  • Water Heaters
  • Lighting
  • Lighting Controls/Sensors
  • Chillers
  • Furnaces
  • Boilers
  • Heat pumps
  • Air conditioners
  • Energy Mgmt. Systems/Building Controls
  • Motor VFDs
  • Custom/Others pending approval
  • Other EE
  • Food Service Equipment
  • Vending Machine Controls
  • LED Lighting
  • Tankless Water Heater
Incentive Amount: Standard Incentive Program: Varies by technology
Custom Incentives: $0.12 per annual kWh savings
Natural Gas Custom Incentives: $3 per annual therms savings
Maximum Incentive: $300,000 per location
Total incentive may not exceed 75% of project cost (equipment + labor) or 100% of incremental measure cost
Equipment Requirements: Vary by measure


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


Name: Andrea Reiff
Organization: Illinois Department of Commerce and Economic
Address: 500 W. Monroe Street
Springfield IL 62701
Phone: (217) 785-0164

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.