Custom Incentive Program

NIPSCO’s Custom Incentive Program offers financial incentives to qualifying large commercial, industrial, non-profit, governmental and institutional customers for installing new energy-saving equipment. The Custom Incentive Program is designed for projects that do not fall under the Prescriptive Incentive Program. Pre-Approval is required for all Custom incentives before any equipment is purchased or installed. Incentives will be calculated based on the estimated reduction in kilowatt hours (kWh) and/or therms from implementation of the energy efficiency project. Incentives will be paid out at $0.07/kWh reduced for lighting projects, $0.09/kWh reduced for non-lighting projects, and $0.80/therm reduced for projects involving gas savings.

NIPSCO’s commercial, industrial and non-profit energy efficiency programs are administered by Lockheed Martin, a third-party implementation specialist that helps businesses save energy.

What Type of Projects Qualify?

Eligible projects, which are designed by the customer, may consist of the retrofit or replacement of existing equipment/systems that result in energy savings. This can include, but is not limited to, lighting, HVAC, compressed air, refrigeration, food service, motors, data centers and IT system projects. For a full list of eligibility requirements, see the application below. All projects must be completed by December 31, 2018 in order to be eligible for incentive.

Gas C&I bonus incentive

Custom Bonus!

For a limited time, we are offering qualifying natural gas customers the perfect opportunity to make energy efficiency upgrades to their building systems AND receive a bonus to their incentive!

Bonuses must be requested by October 10, 2017. Limited to first-come, first-served basis, until December 8, 2017 or funds are exhausted. All bonus projects require pre-approval. Bonus incentives must be requested upon application submittal. See Additional Requirements below for more information. Measures that qualify include:

Project type
Current Incentive Bonus Incentive (in addition to current incentive) 
 Custom (all Custom project eligible)
 $0.80 $0.20
 Retro-Commissioning  $0.80  $0.20
 New Construction


Additional Requirements:

Bonus will be paid to the recipient of the incentive check as indicated on the application and completion submittal. Installation and final completion paperwork must be received by December 8, 2017. All other regular program requirements remain. Absolutely no exceptions will be granted.

Who Qualifies?

Eligible customers include those currently billed under NIPSCO electric rates 720, 721, 722, 723, 724, 725, 726, 732, 733, 734, 741 or 744 and natural gas rates 421, 425 and 451 (NIPSCO’s DependaBill rate).

How to Apply

Step 1 – Review and Complete the Custom Application

*Please note, incentive levels have been updated as of April 3, 2017.

Step 2 – Submit Completed Application with Supporting Documentation to
If electronic submission is not possible, the application and supporting documents can be faxed to 1-800-304-4550.

Supporting Documentation Required:

  • Product Specifications of Efficient Equipment
  • Tax Exempt Letter (if applicable)
  • Energy Savings Calculations (for Non-Lighting Projects)

Step 3 – Application Review
Applications are reviewed in the order that they are received. Complete applications are processed for review within three business days of submission.

Step 4 – Project Approved, Incentive Offer Delivered
Incentive Offer must be signed and returned within 30 days of being issued.

Step 5 – Customer Signs and Returns Incentive Offer, Begins Project
Once the incentive offer is signed and returned, the customer is free to purchase and install the energy efficient equipment.

Step 6 – Delivery of Completion Form
Completion forms will be sent out approximately 1-2 weeks prior to the estimated completion date.

Step 7 – Project Installed, Customer Signs and Returns Completion Form
Customer must submit final invoices along with signed completion form noting any changes to the scope of work.

Step 8 –Final Review of Project
Incentives are subject to change based on the final scope of work.

Step 9 – Receive Incentive Payment
Incentive checks typically arrive within 6-8 weeks.

Have Questions?

To speak with a program representative, call Lockheed Martin toll free at 1-800-299-2501 (Monday – Friday, 8 a.m.-5 p.m. CST). Fax: 1-800-304-4550. Or find a Program Representative* in your area.

Trade Ally Information

Our Trade Allies can help you get started today! Trade Allies are suppliers, firms or contractors that are involved in the installation of high-efficiency equipment or systems and have been pre-approved by Lockheed Martin. Find a Trade Ally* for your project.

Interested in being a part of our Trade Ally Network? Complete and submit the Trade Ally Application*.

*Clicking on the above link takes the user to webpages operated and maintained by a third-party provider of energy efficiency and energy saving services not owned by or affiliated with NIPSCO. The link is provided as a convenience by NIPSCO, and NIPSCO does not make any representations or warranties regarding the security of the website or the provision of goods and services by the third party provider. NIPSCO disclaims any and all liability that may arise from the use of third party websites.