Insulation money for Chicago homes
Every amount below is from the official page and has a read date on file.
Peoples Gas air sealing
Paid for each unit of air leakage removed, measured with a blower door test. A blower door is a fan that pulls air out of the house to find leaks.
Peoples Gas attic insulation
Attic must start at R-0 to R-14 and finish at R-49 or more. Must be bundled with air sealing.
Peoples Gas wall insulation
Exterior or above-ground foundation walls, only with air sealing.
Peoples Gas duct sealing
$2 per unit of duct leakage reduced. The project total is capped at $1,200.
Illinois Home Weatherization Assistance
For households at or below 200% of the federal poverty level.
Federal home energy credit
The 25C insulation credit ended for spending after December 31, 2025.
Peoples Gas also pays $1 per linear foot for pipe insulation on heating and hot water pipes.
Why Chicago homes lose heat
The Census Bureau's 2020 to 2024 survey says 75.2% of Chicago's homes were built before 1980 and 38.8% before 1940. Only 14.9% were built since 2000. Older homes usually have gaps around the attic, rim joists and windows, and little or no wall insulation. Utility gas heats 77.5% of homes, so cutting air leaks cuts a gas bill.
Only 25.6% of homes are detached houses. Another 27.4% are in buildings of two to four homes.
The order of work
Peoples Gas pays for wall and attic insulation only when it is bundled with air sealing. So the order is fixed. Seal first, test, then insulate. The attic must reach R-49. R-value measures how well a layer resists heat flow, and a higher number is better. Walls have no minimum R-value on the page we read, but the rebate is $0.50 a square foot up to $400.
Use only a contractor on Peoples Gas's approved list for 2026. The rebate comes as an instant discount, so there is no form for you. The most any project can get is $1,200.
Free help if you qualify
The Illinois Home Weatherization Assistance Program covers air sealing, attic and wall insulation, heating repair or replacement and water heater work. The most is $20,000 for energy work and $4,000 for health and safety. For program year 2027 the income limit is $31,920 for one person, $43,280 for two and $66,000 for four. You can also qualify with certain benefits, such as help from the Low Income Home Energy Assistance Program in the past 12 months. Apply through a community action agency.
ComEd's Home Energy Savings program also offers a free assessment and, after it, possibly free insulation and air sealing, for households at or below 80% of the area median income.
Renters and condos
With 54.0% of Chicago households renting, many tenants cannot insulate the building. A tenant can ask the landlord to apply. Peoples Gas lists individually metered condos and townhomes as eligible, so a condo owner can seal and insulate the unit.
Do not skip the safety checks
Sealing a home tightly can trap gas fumes from an old furnace or water heater. Ask the contractor to test for carbon monoxide and confirm that gas appliances are vented properly after the work.
How to get an insulation rebate in Chicago
- Check that your home type qualifies: a single-family home, two-flat, or individually metered condo or townhome.
- Pick a contractor from the Peoples Gas approved list.
- Ask for a quote that shows the air sealing, the insulation and the rebate as separate lines.
- Have the blower door test done before and after.
- If your income is low, apply first for the state's free weatherization.
Common questions
What is the most Peoples Gas pays for insulation?
$1,200 per weatherization project, with caps of $400 for air sealing, $400 for wall insulation, $500 for attic insulation and $400 for duct sealing.
Do I have to seal air leaks before insulating?
Yes. Peoples Gas pays wall and attic insulation rebates only when bundled with air sealing.
Is there free insulation in Chicago?
Yes, for households at or below 200 percent of the federal poverty level through the state program, and for households at or below 80 percent of the area median income through ComEd's assessment program.
Is the federal insulation credit still available?
No. It ended for spending after December 31, 2025.
Who does the work?
Only Peoples Gas approved weatherization contractors can give the instant discount.
What to do next
See every Peoples Gas rebate, the Chicago heat pump guide, or the Chicago water heater guide.
By Sam Menard. Sources, last read October 6, 2026: Peoples Gas home energy rebates, Illinois Home Weatherization Assistance Program, ComEd Home Energy Savings, US Census Bureau, American Community Survey 2020-2024. All Chicago rebates → Every ComEd rebate →