Public Sector New Construction and Retrofit Program

September 30, 2022


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.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Illinois
Incentive Type: Grant Program
Web Site:
Administrator: DCEO - Smart Energy Design Assistance Center
Start Date: 08/27/2007
Eligible Renewable/Other Technologies:
  • Dishwasher
  • Refrigerators/Freezers
  • Water Heaters
  • Lighting
  • Chillers
  • Furnaces
  • Boilers
  • Heat pumps
  • Air conditioners
  • Heat recovery
  • Caulking/Weather-stripping
  • Duct/Air sealing
  • Building Insulation
  • Windows
  • Roofs
  • Motors
  • Motor VFDs
  • Other EE
  • Food Service Equipment
  • Reflective Roofs
  • LED Lighting
  • Tankless Water Heater
  • Commercial Refrigeration Equipment
Incentive 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
Maximum Incentive: 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
Equipment Requirements: Eligible equipment must be purchased or installed prior to June 1, 2015 and after May 31, 2014.
Installation Requirements: Construction or major renovations must exceed 15,000 square feet


This program has 1 incentives
Technologies: Dishwasher, Refrigerators/Freezers, Water Heaters, Lighting, Chillers, Furnaces, Boilers, Heat pumps, Air conditioners, Heat recovery, Caulking/Weather-stripping, Duct/Air sealing, Building Insulation, Windows, Roofs, Motors, Motor VFDs, Other EE, Food Service Equipment, Reflective Roofs, LED Lighting, Tankless Water Heater, Commercial Refrigeration Equipment
Sectors: Local Government, State Government, Federal Government
Parameters: The incentive is 3.00 $/square foot, The incentive has a minimum of $300.00, The incentive has a minimum of 75.00 % of cost


Name: § 220 ILCS 5/8-103
Date Enacted: 08/27/2007
Effective Date: 08/27/2007


Name: Public Sector Energy Efficiency
Organization: Illinois Department of Commerce and Economic
Address: 620 East Adams Street
Springfield IL 62701-1615
Phone: (217) 785-2863
Name: SEDAC Info
Address: 1 Saint Mary's Road
Champaign IL 61820
Phone: (800) 214-7954
Name: Jean Ascoli
Champaign IL 61820
Phone: (217) 244-7755
Name: Kristine Chalifoux
Champaign IL 61820
Phone: (217) 244-1315

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.