Renewable Energy and Energy Efficiency Project Financing

August 28, 2020


The Illinois Finance Authority (IFA) is a state conduit issuer of tax-exempt bonds and credit enhancement for projects in Illinois. IFA funding is available to commercial and non-profit entities as long as those entities meet strict eligibility criteria. In 2012, the legislature also added schools and community colleges to the list of eligible entities for energy conservation funding. Entities seeking funding must demonstrate that their projects provide a significant public benefit for the citizens of Illinois. In 2009, the IFA was authorized by legislation (S.B. 1906 and S.B. 390) to provide funding via issuance of tax-exempt bonds for renewable energy projects and energy efficiency projects.

For the purposes of this program, renewable energy projects include those that utilize wind, solar thermal energy, photovoltaic cells and panels, biodiesel, crops and organic waste biomass, trees and tree trimmings, hydropower, Illinois-produced landfill gas, geothermal, and "other alternative sources of environmentally preferable energy." Transmission lines and associated equipment used to transfer electricity created by renewable energy and renewable energy storage technologies are also eligible.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Illinois
Incentive Type: Bond Program
Web Site:
Administrator: Illinois Finance Authority
Start Date: 01/01/2010
Eligible Renewable/Other Technologies: Solar - Passive,Solar Water Heat,Solar Space Heat,Geothermal Electric,Solar Thermal Process Heat,Solar Photovoltaics,Wind (All),Biomass,Geothermal Heat Pumps,Combined Heat & Power,Daylighting,Clothes Washers,Dishwasher,Refrigerators/Freezers,Dehumidifiers,Ceiling Fan,Water Heaters,Lighting,Lighting Controls/Sensors,Chillers,Furnaces,Boilers,Heat pumps,Air conditioners,Programmable Thermostats,Energy Mgmt. Systems/Building Controls,Building Insulation,Windows,Custom/Others pending approval,Yes; specific technologies not identified,Wind (Small),Fuel Cells using Renewable Fuels,Other Distributed Generation Technologies,LED Lighting,Commercial Refrigeration Equipment
Incentive Amount: Varies by project


Name: 20 ILCS 3501
Date Enacted: 2009 (subsequently amended)


Name: Main Office
Organization: Illinois Finance Authority
Address: 180 N Stetson
Chicago IL 60601
Phone: (800) 717-6066

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.