Clean Energy Contractor Incubator Program

The Clean Energy Contractor Incubator Program, administered by the Illinois Department of Commerce and Economic Opportunity (DCEO), is part of the broader Climate and Equitable Jobs Act (CEJA). The program is designed to foster a more inclusive clean energy economy in Illinois by supporting small, equity-eligible contractors who face systemic barriers to entry and growth in this industry. It targets contractors from construction-related fields—such as electrical work, HVAC, roofing, and related trades—and provides them with access to mentorship, business development, technical assistance, and strategic networking opportunities that enhance their readiness to engage in clean energy projects across the state. Rooted in statutory authority from 20 ILCS 730/5-45, the program’s mission is to expand the number and strengthen the capacity of clean energy contractors from underserved and underrepresented communities, particularly those located in Environmental Justice Communities and R3 Areas. One-third of placements must be for contractors based in both of these communities, while at least two-thirds must serve equity investment-eligible communities. The program prioritizes individuals facing barriers such as limited education, prior justice involvement, language difficulties, and foster care experience. Contractors are supported in overcoming these barriers through training, mentorship, back-office support, and assistance with bonding, insurance, and capital access. Participating incubator hubs are required to offer a comprehensive set of services. These include business and financial support (e.g., bonding, permitting, insurance, and access to low-interest loans), training in workforce development and compliance (including prevailing wage law), and support for certifications and registrations such as Approved Vendor status. Incubators must also actively coordinate with other CEJA programs—including Navigators, Workforce Hubs, Returning Residents Program, and the Clean Energy Primes Accelerator—to ensure ecosystem-wide support for contractors. These partnerships are key to providing seamless access to clean energy market opportunities statewide. Applications for incubator funding are open to community-based organizations (CBOs) with a proven track record in serving barrier-facing populations. Accredited public colleges or universities may also apply, provided they function in a direct, community-facing capacity similar to a CBO. Government agencies, for-profit entities (except as subcontractors), individuals, and foreign organizations are ineligible. Applicants must demonstrate deep ties to the communities they intend to serve and show capacity to deliver services such as training, mentorship, capital access, and program coordination. The DCEO evaluates proposals based on geographic coverage, alignment with NOFO objectives, and the proposed program scope and budget. Awards are made through a merit-based review process, subject to final negotiation. Applications must be submitted electronically through the DCEO’s Grant Management System. There is no formal pre-application requirement, although applicants are encouraged to review program materials and attend informational webinars. The application includes a Uniform Grant Application, budget templates, and CEJA-specific attachments. There is no matching fund requirement. Awards range between $500,000 and $2,500,000 per grantee, with a program-wide funding total of $12,093,175 for FY2025 and anticipated $21,000,000 each for FY2026 and FY2027. The initial grant period is 12 months, with up to two optional 12-month renewals. Applications are accepted on a rolling basis until funds are depleted. The program requires grantees to report quarterly on key performance indicators including contractor demographics, contracts secured, jobs created or retained, training sessions conducted, and overall business growth. A final closeout report must be submitted within 45 days of the performance period’s end. By embedding diversity, equity, inclusion, and accessibility into its service delivery, the CEJA Clean Energy Contractor Incubator Program seeks to build a robust pipeline of contractors equipped to lead Illinois’s clean energy transformation.

Priority is given to organizations with demonstrated ties to target communities and experience serving populations with barriers; coordination with CEJA partner programs is strongly recommended.