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Combined Heat and Power Partnership

Public Sector Combined Heat and Power (CHP) Pilot Program

dCHPP Glossary (PDF) (2 pp, 53K)

Date Last Updated7/9/2014
Incentive TypeGrant
State/FederalIL
Incentive Administrator/Contact OfficeIllinois Department of Commerce and Economic Opportunity
Incentive Initiation Date6/15/2014
Incentive Expiration Date11/21/2014
Incentive Size and Funding SourceThe CHP Pilot Program provides cash incentives for combined heat and power (CHP) projects that increase energy efficiency of local governments, municipal corporations, public school districts, community college districts, public universities, and state/federal facilities. The program is structured with performance based incentives to provide financial assistance during various stages of a project, including after the design phase, commissioning, and after 12 months of measured operational performance:

  • Design Incentive: $75/kW capacity (following completion of the design phase).
  • Constructive Incentive: $175/kW capacity (following successful commissioning of the system).
  • Production Incentive: $0.08/kWh (efficiency ? 70% HHV) OR $0.06/kWh (60% ? efficiency < 70% HHV) of ?useful electric energy? produced (after 12 months of operation based on meeting the measured operating requirements of the system).
Cash incentives are capped at $2M or 50% of project cost for a single CHP system (whichever is less).
Eligible RecipientLocal governments, municipal corporations, public school districts, community college districts, public universities, and state/federal facilities located in the service territories of Commonwealth Edison, Ameren Illinois, Nicor Gas, Peoples Gas, and/or North Shore Gas.
Eligible FuelDoes Not Specify
Eligible Project Size (MW)Does Not Specify
Minimum Efficiency Required (%)For Conventional CHP systems to qualify, the minimum measured performance level must be an annual energy efficiency of 60% with at least 20% of the system?s waste heat energy output in the form of useful thermal energy utilized in the facility.
Other Selected Eligibility CriteriaProjects require an engineering feasibility analysis. Feasibility Analysis and TRC Workbook (XLS) (107K)
UtilityCommonwealth Edison, Ameren Illinois, Nicor Gas, Peoples Gas, North Shore Gas
Application Form(s)Request for Applications (PDF) (32 pp, 916K)
Other Incentive DetailsKey dates for this program:

  • June 2014: RFP Released.
  • August 15, 2014: Deadline for Letter of Intent to apply (optional).
  • November 21, 2014: Deadline for project applications.
  • December 2014: Project awards announced.
  • February/March 2015: DCEO contracts awarded.
  • May 2016: Deadline for project commissioning.
  • May 2017: Deadline for 12 months of CHP operation.
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