CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
Receive the update on the Renewable Energy Program
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DEPARTMENT: Electric Utility
SUBMITTED BY: Brian Groth, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
In 2004, the City Council approved the creation of the Renewable Energy Program (REP) as a way for Electric Utility customers to monetarily support renewable energy.
Various changes to the program have occurred over the past 20 years, including an increase in purchases of Renewable Energy Certificates (RECs) and adding energy efficiency grants for commercial and residential properties to the program. A significant turning point in the program occurred in March of 2020 when the City Council and Public Utilities Advisory Board (PUAB) approved expanding the grant program to include residential energy efficiency initiatives such as window and attic insulation upgrades. These changes were made to reduce energy consumption across the city. At the same time, an increase in solar incentives was approved to encourage local generation while reducing the growing Renewable Energy Fund cash balance.
In 2021, REC purchases were formally discontinued so that funds could be utilized solely to support local efficiency and solar installation projects. Since 2021 adjustments have been made to the maximum award amount and reimbursement amounts to make the program more sustainable and adapt to various market changes as well as an increase in available federal and state grants.
The REP now has just over 3,700 participants with annual revenue of approximately $280,000. As of December 6, 2024, the fund’s cash balance was $282,209.
DISCUSSION:
Participation in the REP has steadily increased over the years, supported by a change made in 2024 which requires grant recipients to remain in the program for a minimum of five years after receiving a grant. This change ensures that program membership and revenue remain stable.
In 2024, the three most popular rebate types were Residential Solar, Attic Insulation, and Window Replacement. Staff and NEST have reviewed the latest state standards for energy efficiency as well as programs offered by other utilities. There have been no significant changes to any rebate type and when the REP rebates are combined with IMEA-provided rebates a wide range of opportunities to improve energy efficiency and ultimately reduce electricity consumption are provided to our residential and commercial customers.
In 2025, staff will research potential methods to incentivize battery storage installations in a fair and equitable manner. Doing so may increase the number of residential and commercial battery installations across the city and ultimately called by the Electric Utility to reduce the City’s monthly, as well as IMEA’s, overall peak load.
Changes to the program in 2025:
The Electric Utility suggests no changes to the program in 2025. The grant amount and overall budget for each line item are shown below:
|
Rebate Type |
Current Grant Amount |
2025 Budget |
|
Residential Attic Insulation |
$1 per square foot/$2,500 maximum rebate |
$90,000 |
|
Residential Single-Pane Window Replacement |
The grant amount is $250 per window, with a $2,500 maximum award |
$50,000 |
|
Residential Solar |
Limited to 7 kW AC and will not exceed $1,750 ($250/kW AC rated at AC Inverter) |
$109,500 |
|
Commercial Solar |
Max of $15,000 per commercial project |
$30,000 |
|
City of Naperville Funded Residential EVCS |
Up to $500 is offered from the IMEA Energy Efficiency program |
$0 |
|
Residential Furnace Blower Motor Upgrade |
$100 |
$200 |
|
Air Conditioning Unit Tune-Up |
$25 per unit- once every 3 years |
$300 |
|
Total |
$280,000 |
The Electric Utility, in partnership with the Community Services Department, administers the program and awards grants in the order they are received. Grant applications are considered received when all form fields are completed, and the application is submitted online. When all budgeted funding is awarded, the program awards will close for the remainder of 2025.
Recommendation:
NEST was consulted and agreed with staff’s recommendation that no changes be made to the REP for 2025. The overall budget for 2025 renewable energy grants is set by the 2024 program revenues. In 2025, the Electric Utility will work with Communications staff to update the program website when grant disbursement milestones have been met and the program will close to new applications when funding has been exhausted.
FISCAL IMPACT:
Projected 2025 revenue and the existing cash balance in the Renewable Energy Fund are sufficient to award $280,000 in grants for 2025.