Incentives and Rebates

Posted by ARC Insulation January 10th, 2025
Making energy efficiency upgrades to your home is easier than ever with one of the best insulation contractors in Chicagoland at the helm of your project. While many home improvements will pay for themselves over time and lower your energy costs right away, the upfront costs are an investment. At ARC Insulation, we strive to provide energy-saving solutions to home comfort and health issues while also helping our customers maximize their savings. That’s why we pay so much attention to all of the incentives and home insulation rebates currently available to homeowners in our service area, including Naperville and the surrounding areas. We’re here to help you qualify for Illinois rebates and federal incentives, including:

Tax Credits & Rebates

When it comes to ways to save on the cost of insulation, one of the biggest incentives available are the tax credits for energy efficiency upgrades to your home. The Inflation Reduction Act (IRA) is the largest act of Congress to combat climate change and makes energy-saving home improvements more affordable. Within the IRA are several new or revitalized tax credits and rebates, including:

25C Tax Credit

Officially named the Energy Efficient Home Improvement Credit, this tax credit will reduce your federal income tax liability by 30% of the cost of your home improvements, with limits that vary by service. The 25C tax credit can be claimed every year you make qualifying home improvements from now through 2032. The energy efficiency upgrades that qualify for the IRA tax credits include:

Home Energy Rebate Programs

The Inflation Reduction Act also includes $263 million in funds for two Home Energy Rebate Programs aimed to incentivize energy efficiency upgrades. This program will be handled by the Illinois EPA. The application has been submitted and is pending approval; ARC Insulation is keeping a close watch on any updates. The rebate programs will include:
  • Home Owner Managing Energy Savings (HOMES) – This program provides rebates for home performance upgrades based on the energy savings they’re expected to achieve.
  • Home Electrification and Appliance Rebate – This rebate program is designed exclusively for low to moderate income households and cannot be combined with the HOMES rebates or any other federal grant program.
Recent updates to the program include:
  • Exceptions for cases where ENERGY STAR-certified products are unavailable for multifamily buildings.
  • Specifications that only one appliance per category is allowed.
  • Duct sealing and insulation are eligible Qualified Energy Property improvements.
  • Reductions in the scope of home assessment requirements.
  • Modifications to the self-attestation income verification process.

Local Incentives in Chicagoland

There are also local utility rebates and incentives available for insulation services in Naperville, Romeoville, and surrounding areas:

Nicor Gas Rebates

We work with the Nicor Gas Energy Efficiency Program to offer rebates and instant discounts for your certain energy-saving projects. You can save up to $1,850 on professional insulation and other weatherization services through Nicor Gas rebates. Here are the specifics:
  • Air sealing – $500
  • Duct Sealing – $600
  • Attic Insulation – Up to $400 (Existing insulation R-value must be R20 or less)
  • Exterior wall insulation (including kneewalls) – $150
  • Foundation sidewall insulation (including band joist) – $200

Peoples Gas Home Energy Rebate Program

Get up to $700 in insulation rebates with Peoples Gas. These insulation rebates are only available when paired with air sealing and when installed by an approved weatherization contractor, like ARC Insulation. The Peoples Gas rebates are determined by either the size of your home insulation upgrade or the reduction of energy loss for air sealing.

Naperville’s Energy Efficiency Grant Program

Naperville Electric Utility customers can earn $1 per square foot, up to $2,500, for insulation upgrades. Rebates cover 50% of project costs (including materials and labor) and may double when combined with energy-efficient window installations. Homeowners must be contributors to the Naperville Electric Utility Renewable Energy Program to qualify.

North Shore Gas Home Energy Rebate Program

With the North Shore Gas Home Energy Rebate Program you can save up to $700 in rebates for insulation upgrades, including attic and wall insulation. To qualify, projects must include air sealing and be completed by a program-approved contractor, ensuring professional installation and compliance with program guidelines

Maximize Your Savings & Benefit Now

Every month you wait to upgrade your home, you’ll be paying more for heating and cooling costs and missing out on other benefits, like: Our team can help you qualify for, and combine, available rebates to make sure you’re getting the most from your energy efficiency upgrades—and maximizing your savings. We encourage Chicagoland residents to get an energy assessment before making any home performance upgrades. This assessment shows you where your home has inefficiencies so you can easily determine where it needs more insulation.

Save on insulation with rebates and tax credits! Call 815-368-5635 or contact us.

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