
Open
Business case: Community Energy Systems
Last Update: January 21, 2026
Canada
Funding to develop business cases for low-carbon community energy systems
Grant and Funding
At a glance
Funding available
Financing goals
No objectives are currently available
Eligible Funding
- Maximum amount : 100,000 $
- Up to 50% of project cost
Timeline
- Unspecified
Eligible candidates
Eligible Industries
- Utilities
- Public administration
Location
- Canada
Legal structures
- Non-profit
- Public or Parapublic institution
- For-profit business
Annual revenue
- All revenue ranges
Organisation size
- All organization sizes
Audience
- Indigenous Peoples
- Rural or Northern Residents
- Canadians
Non-profit candidates
Sector of operation
- All industries
Target groups
- All the groups
Revenue structures
- All structures
Scope
- All dimensions
Overview
This program provides a grant covering up to 50% of eligible costs, to a maximum of $100,000, to develop a business case assessing low-carbon and renewable community energy systems viable for a specific site. Eligible activities can include scanning and evaluating energy sources and providers, assessing site and market viability, reviewing legal and regulatory context, analyzing business model and partnerships, assessing environmental/social/economic impacts, and conducting stakeholder engagement.
Activities funded
- Developing a business case to assess low-carbon and renewable community energy systems viable for a specific site and the organization’s capacity to implement them.
- Identifying and evaluating preferred neighbourhood-scale community energy option(s), including impacts, costs, revenues, risks, partnerships and the proposed business model.
- Conducting resource and market scans (e.g., available energy sources, local energy providers, and market demand for energy or other outputs from the system).
- Assessing site viability and the legal/regulatory context to support implementation of a community energy system.
- Undertaking stakeholder engagement and an equity assessment as part of the business case.
Eligibility
- The applicant must be a Canadian municipal government (e.g., town, city, region, district or local board) or an eligible municipal partner (private sector entity, municipally-owned corporation, regional/provincial/territorial organization delivering municipal services, non-governmental or not-for-profit organization, or research institute such as a university).
- If the lead applicant is an Indigenous community, it must be partnering with a Canadian municipal government on an eligible project, or have a shared service agreement with a Canadian municipal government related to municipal infrastructure, climate change or adaptation.
- The project must produce a business case that technically explores low-carbon and renewable community energy systems viable for a given site and assesses the capacity to implement them.
- The business case must identify preferred community energy option(s) at a neighbourhood scale and assess viability, impacts/benefits, costs and revenue streams, partnerships, business model (ownership/operations/financing), and risks/mitigation.
- The business case must include, at minimum, GHG impact considerations, economic benefits to the municipality, stakeholder considerations, implementation considerations (e.g., right of way, zoning, access), a financial analysis (costs, revenues, ROI, funding options), and an equity assessment.
Who is eligible?
- Canadian municipal governments (e.g., towns, cities, regions, districts, and local boards)
- Private sector entities (as municipal partners)
- Municipally-owned corporations
- Regional, provincial or territorial organizations delivering municipal services
- Non-governmental organizations, not-for-profit organizations, and research institutes (e.g., universities)
Who is not eligible
- Private enterprises that submit an application as the primary applicant (the funding is intended for Canadian municipal governments; the private sector is mentioned only as a municipal partner).
- Indigenous communities that submit an application without a partnership with a Canadian municipal government in an eligible project, and without a shared services agreement with a Canadian municipal government (municipal infrastructure, climate change mitigation, or climate adaptation).
Eligible geographic areas
- Canada (projects led by Canadian municipal governments and eligible municipal partners).
- Indigenous communities in Canada (when partnering with a Canadian municipal government or with a shared service agreement related to municipal infrastructure, climate change or adaptation).
- Northern Canada (the three territories).
- Northern portions of Newfoundland and Labrador, Québec, Ontario, Manitoba, Saskatchewan, Alberta and British Columbia (as defined by Statistics Canada codes).
Selection criteria
- Innovation and potential impact of the initiative (GMF aims to fund the most innovative and impactful projects).
- Greenhouse gas (GHG) impacts of the solution or approach being studied.
- Economic benefit to the municipality.
- Quality of the financial analysis (e.g., cost estimates, revenue projections, ROI, and funding options).
- Equity assessment (who benefits or is burdened; strategies to address barriers/mitigate negative impacts; use of data sources to illuminate equity issues).
How to apply
1
Review the application guide
- Download and review the Community Energy Systems application guide
- Review prerequisites and required supporting documents (Appendix D)
2
Discuss your project with GMF
- Contact a GMF representative to discuss your project (gmfinfo@fcm.ca or 1-877-417-0550)
3
Confirm budget and eligible costs
- Review eligible and ineligible costs for business cases, plans, pilots and studies
- Ensure you have a detailed project budget and other funding sources
4
Submit the pre-application
- Create a client profile in FCM’s funding portal
- Submit the pre-application form through the portal
5
Receive eligibility determination
- Wait for the GMF outreach officer/advisor to review your pre-application
- Receive an eligibility response within 15 business days
6
Prepare the full application
- Access the full application form via FCM’s funding portal (if invited)
- Complete the Excel project workbook template provided by GMF
7
Submit the full application
- Attach required supporting documents
- Submit the full application and workbook to GMF through FCM’s funding portal
8
Complete GMF project officer review
- Work with the assigned GMF project officer to confirm accuracy and completeness
- Resolve any outstanding questions during the review
9
Await the funding decision
- Undergo external peer review and internal analysis
- Wait for the funding decision (typically 3–5 months for studies)
10
Complete Quebec MAMH submission
- For Quebec municipalities, save the application form using the required filename format
- Upload files via the MAMH portal “File Transfer” to the applicable program
- Wait up to 15 working days for MAMH review before GMF receives the application
Additional information
- Applications are accepted year-round, but the offer may close once all available funding is allocated.
- A business case is intended to prepare your organization for a subsequent feasibility study.
- A business case and feasibility study may be combined as a single project (with a higher total maximum available for the combined project).
- Funding decisions for study projects are typically issued three to five months after the full application is submitted.
Contacts
gmfinfo@fcm.ca
1-877-417-0550
Canada
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Frequently Asked Questions about the Business case: Community Energy Systems Program
Here are answers to the most common questions about the Business case: Community Energy Systems. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.
What is the Business case: Community Energy Systems?
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Is the Business case: Community Energy Systems a grant, loan, or tax credit?
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Are Indigenous Peoples eligible for the Business case: Community Energy Systems program?
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