What Peoples Gas pays in 2026
Equipment must be new, fully installed in 2026, and the old equipment must be removed. Rebates cannot be more than the project cost.
Gas furnace
$200 for a furnace that is at least 95% efficient (AFUE) and $225 for one that is at least 97%.
Gas heat pump
$575 for a gas heat pump for space heating and $700 for one that also heats your hot water. Both must be 225,000 Btu per hour or smaller. This is a gas-fired machine.
Boilers and water heaters
Hot water boilers $300 to $350, a boiler that also heats water up to $500, steam boilers $150, tankless and indirect water heaters $150.
Thermostats
$25 for a smart thermostat and $20 for a programmable one. A programmable thermostat put in at the same time as a new furnace does not qualify.
Air sealing, insulation and ducts
Air sealing $0.40 per unit of air leak removed up to $400, wall insulation $0.50 a square foot up to $400, attic insulation $0.30 a square foot up to $500, duct sealing up to $400. The project total is capped at $1,200.
Pipe insulation pays $1 per linear foot for heating pipes and hot water pipes. The weatherization rebates are instant discounts from an approved contractor.
Who can apply
Peoples Gas says its rebates are for single-family homes, two-flats and individually metered condos or townhomes, on a standard residential account called Service Classification 1. Larger buildings are not on the list, so if you live in one, ask Peoples Gas which offer fits before you buy. Our Chicago guide has the local numbers.
Your electric company is a different company. In Chicago it is ComEd, and ComEd's heat pump discounts are the ones to look at if you want to leave gas.
What a gas heat pump is
An electric heat pump moves heat from outdoor air into your home. A gas heat pump does the same job but its engine runs on natural gas instead of electricity. Peoples Gas pays $575 or $700 for one, which is more than it pays for a furnace. We do not rank a gas heat pump above an electric one, and we found no verified price comparison. If your goal is to stop burning gas, an electric heat pump is the match, and ComEd takes up to $2,000 off one.
Weatherization comes first
The wall and attic rebates only apply when you bundle them with air sealing. The attic must start between R-0 and R-14 and finish at R-49 or more. Peoples Gas says wall insulation applies to exterior walls or above-ground foundation walls. Duct sealing is paid per unit of leakage removed, up to $400.
The Census Bureau's survey for 2020 to 2024 found that about 75% of Chicago's homes were built before 1980. Older homes tend to leak more air, so sealing and insulating is often a low-cost way to cut a gas bill.
Deadlines and payment
Applications must reach Peoples Gas within 30 days of the install or by December 31, 2026, whichever comes first. That window is much shorter than Nicor Gas's 90 days, so apply right after the work. Rebate checks come in six to eight weeks, and you must cash the check within 90 days.
Help paying for upgrades
Peoples Gas links to the Illinois Energy Efficiency Loan Program, which lets you pay for upgrades through a monthly charge on your utility bill. We did not read its terms, so check the interest rate on the loan page. Lower-income households can get free work through the state's weatherization program.
How to claim a Peoples Gas rebate
- Check that your gas bill says Peoples Gas and that your home type qualifies.
- For insulation and air sealing, pick a contractor from the approved list on the Peoples Gas site.
- For a furnace, boiler or water heater, ask your installer to confirm the model's efficiency rating.
- Fill out the HVAC and water heating application and send it with the invoice within 30 days of installation.
- Call 855-849-8928 for weatherization questions.
Our pages for Peoples Gas customers
- Chicago: Peoples Gas for gas, ComEd for electricity.
Guides
- Illinois rebate hub
- Nicor Gas rebates (suburbs)
- Chicago insulation rebates
- Chicago water heater rebates
- Chicago heat pump rebates
Common questions
How much does Peoples Gas pay for a furnace?
$200 for a furnace at least 95% efficient and $225 for one at least 97% efficient. The rebate cannot be more than the project cost.
Does Peoples Gas have an electric heat pump rebate?
No. Its heat pump rebate is for gas-fired heat pumps, at $575 or $700. For an electric heat pump in Chicago, look at ComEd.
How long do I have to apply?
30 days after installation or until December 31, 2026, whichever comes first.
Is there a cap on weatherization?
Yes. The most you can get per weatherization project is $1,200, with caps of $400 for air sealing, $400 for walls, $500 for attics and $400 for ducts.
Who can use the program?
Peoples Gas customers on a standard residential account in a single-family home, two-flat or individually metered condo or townhome.
Where do I find an approved contractor?
Peoples Gas posts a list of approved weatherization contractors each year. Use the link on its home rebates page.
By Sam Menard. Sources, last read October 6, 2026: Peoples Gas home energy rebates, Peoples Gas HVAC and water heating application, US Census Bureau, American Community Survey. All rebate programs →