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Incentives/Policies for Renewables & Efficiency

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Public Sector New Construction and Retrofit Program   

Last DSIRE Review: 07/22/2013
Program Overview:
State: Illinois
Incentive Type: State Grant Program
Eligible Efficiency Technologies: Dishwasher, Refrigerators, Water Heaters, Lighting, Chillers , Furnaces , Boilers, Heat pumps, Central Air conditioners, Heat recovery, Caulking/Weather-stripping, Duct/Air sealing, Building Insulation, Windows, Roofs, Motors, Motor VFDs, Led Exit Signs, Commercial Refrigeration Equipment, Food Service Equipment, Tankless Water Heaters, Floors, LED Lighting, Cool Roof
Applicable Sectors: Local Government, State Government, Fed. Government, Public Schools, Community Colleges, Public Universities
Amount:Prescriptive: Varies by technology
Custom: $0.08/kWh or $1/therm saved
Breakthrough exterior lighting equipment: $0.30/kWh saved
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
Installation Requirements:Construction or major renovations must exceed 15,000 square feet
Funding Source:Illinois Energy Efficiency Portfolio Standard (EEPS) surcharge for Ameren Illinois, ComEd, Nicor, North Shore and Peoples customers
Start Date:08/27/2007
Web Site:
Authority 1:
Date Enacted:
Date Effective:
ยง 220 ILCS 5/8-103

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:

  • 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.

  Public Sector Energy Efficiency
Illinois Department of Commerce and Economic Opportunity
Bureau of Energy and Recycling
620 East Adams Street
Attn. PSEE
Springfield, IL 62701-1615
Phone: (217) 785-2863
Fax: (217) 785-2618
Web Site:
  SEDAC Info
University of Illinois at Urbana-Champaign
Smart Energy Design Assistance Center
1 Saint Mary's Road
Champaign, IL 61820
Phone: (800) 214-7954
Web Site:
  Jean Ascoli
University of Illinois at Urbana-Champaign
Smart Energy Design Assistance Center
Champaign, IL 61820
Phone: (217) 244-7755
  Kristine Chalifoux
University of Illinois at Urbana-Champaign
Smart Energy Design Assistance Center
Champaign, IL 61820
Phone: (217) 244-1315
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2014 - 2015 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.