Clean Energy Contractor Incubator

The Illinois Department of Commerce and Economic Opportunity (DCEO) is offering the Clean Energy Contractor Incubator Program to support the growth and success of clean energy contractors and nonprofit organizations operating in communities impacted by economic, social, and environmental challenges. Established under the Climate and Equitable Jobs Act (CEJA), this initiative is designed to build a diverse and equitable workforce capable of meeting Illinois’ ambitious clean energy goals. The program is state-funded and aims to establish incubators in four key regions—Waukegan, Champaign, Danville, and Kankakee—each of which will serve as a hub for developing contractors through a comprehensive suite of services and support. The purpose of the program is to prepare small, community-based clean energy businesses and contractors to participate effectively in the expanding green economy. Incubators funded under this NOFO will offer low-cost capital access, business operations assistance (including support with insurance, bonding, permits, and certifications), and training and mentoring programs. Additionally, they will foster connections with organizations and clients that hire clean energy contractors, coordinate with Department of Labor for prevailing wage compliance, and participate in broader state-led clean energy workforce development efforts. The initiative also emphasizes collaboration with existing CEJA workforce programs to maximize impact. Applicants must be community-based nonprofit organizations or accredited public colleges or universities with a proven history of delivering business development services, particularly to underserved populations in equity investment-eligible communities. Eligibility criteria include demonstrating knowledge of clean energy trades, having strong ties to local residents and partner organizations, and being able to operate ADA-compliant facilities that are accessible and capable of hosting program activities. While applicants may deliver services directly, they are permitted to subcontract elements like mentoring, training, or outreach. Grant awards will range from $500,000 to $2.5 million per region, with total available funding for this cycle set at $21 million. The initial performance period is 12 months, with the possibility of two 12-month extensions based on grantee performance and continued funding availability. The program does not require matching funds, and indirect costs are allowed without restrictions. The anticipated award start date is March 2, 2026. Application materials must be submitted via the Smartsheet link provided no later than February 16, 2026, at 5:00 PM Central Time. A non-mandatory technical assistance session will be held on January 8, 2026. To apply, organizations must complete and submit several required documents, including a uniform grant application, a uniform budget with all tabs, conflict of interest and mandatory disclosure forms, and key attachments such as staffing plans, resumes, partnership MOUs, and a detailed work plan outlining services, outcomes, and timelines. A technical proposal (not exceeding 20 pages) and a one-page executive summary must also be included. Applications must adhere to formatting requirements, such as font size, margins, and document structure. Only documents submitted via the specified form will be accepted. Applicants will be evaluated based on four main criteria: documentation of need (15%), applicant capacity (35%), project quality and integration (35%), and cost-effectiveness/return on investment (15%). Priority will be given to organizations with demonstrated expertise, alignment with program goals, and the ability to serve equity-eligible populations. Evaluation will be conducted by a review committee, and awards will be granted following negotiations on grant terms and budgets. This is a rolling opportunity; funds will be awarded until they are exhausted. Periodic performance and financial reporting will be required throughout the grant period.

Clearly demonstrate equity-driven program design; Prioritize partnerships with local organizations; Provide evidence of relevant experience and capacity.