Canonical program record
Nicor Gas Custom Incentives
Commercial customers may seek a calculated incentive for qualifying capital energy-efficiency projects that are not eligible for Nicor prescriptive rebates.
What this mechanism does
- Mechanism type
- Rebate
- Economic effect
- Lower the project cost
- Administrator
- Nicor Gas Energy Efficiency Program
- Amount or value
- Generally $0.60 per annual therm saved through 15,000 therms and $0.80 above that level, capped at $350,000 or 35% of project cost; different small-commercial tiers may apply.
- Cash-flow timing
- Incentive follows preapproval, completed installation, final application, final approval, and available funding.
- Upfront cash
- Required
- Repayment
- Not a repayable mechanism
- Program lifecycle
- Current / deadline
- Visitor treatment
- Worth checking now
This current pathway has a material deadline or timing condition that must be checked.
Important dates and consequences
Obtain Nicor custom-incentive preapproval before any project commitment
Date or rangeBefore ordering equipment, signing a contract, or beginning work
Ordering, signing, or beginning work before Nicor preapproval can make the project ineligible for a custom incentive.
Date last verified
Approved custom project must be operational by December 31, 2026
Date or range2026-12-31
A later operational date requires new written Nicor guidance and cannot rely on this edition's calculation or funding year.
Date last verified
Submit the final application within 30 days and no later than January 31, 2027
Date or rangeWithin 30 days after project completion and no later than 2027-01-31
A missed final-submission deadline requires Nicor review and may prevent payment even when preapproval was obtained.
Date last verified
Project fit and limits
Eligibility conditions to confirm
- The project must be installed at a current eligible commercial or industrial Nicor Gas customer site.
- The project must save natural gas and must not be eligible for a Nicor prescriptive rebate.
- Nicor preapproval and final approval are required.
Eligible costs described by the authority
- Qualifying capital projects such as burner controls, process heat recovery, insulation, and other approved nonstandard gas-saving measures
Ineligible or excluded costs
- Operating or maintenance practice changes without capital costs
- Peak-shifting without therm savings, renewable-energy projects, and prescriptive-eligible measures
- Projects with expected simple payback of less than one year
Friction to plan for
- Preapproval is required before ordering equipment, signing a contract, or starting work.
- Engineering calculations and project documentation may be requested.
- Funding after the 2026 program year is not guaranteed.
Stackability evidence
Prohibited combination
Scope: The same natural-gas efficiency measure.
Nicor custom incentives are for qualifying projects not eligible for a prescriptive rebate, so the same measure cannot receive both pathways.
- Separate measures may be screened independently by Nicor.
- Nicor's written classification controls.
Rule last verified