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Business case: Community Energy Systems
Funding to develop business cases for low-carbon community energy systems
Last Update: March 4, 2026
Funding available
$ 100,000
Timeline
- Open continuously
Location
Canada
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.
/100
Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- Increase performance through digital transformation
- Increase social or community impact
- Develop strategic partnerships
Eligible Funding
- Maximum amount : 100,000 $
- Up to 50% of project cost
Timeline
- Open continuously
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
Next Steps
1
Determine your project
2
Validate your eligibility
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.
Documents Needed
- Completed GMF full application form (submitted via the FCM funding portal)
- Completed Excel project workbook template (provided by GMF)
- Required supporting documents (as listed in Appendix D of the application guide)
Eligibility
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).
Processing and Agreement
- GMF reviews your pre-application and determines whether you can proceed; you’ll receive a response within 15 business days.
- If invited, you submit a full application; a GMF project officer reviews it for accuracy and completeness and follows up to resolve questions.
- Your application undergoes external expert peer review and internal analysis to develop a funding recommendation.
- For studies, GMF’s managing director makes the funding decision (typically 3–5 months after full submission); for capital projects, FCM’s Board of Directors approves the recommendation (typically 4–6 months).
- If approved, GMF prepares a funding agreement between FCM and the applicant.
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
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?
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.
How much funding can be received?
Business case: Community Energy Systems Funds up to 50% of admissible expenses, capped at $100,000 per project.
Who is eligible for the Business case: Community Energy Systems program?
To be eligible for the Business case: Community Energy Systems program, you must:
Eligible municipal partners (e.g., private sector entities, municipally-owned corporations, NGOs/NPOs, research institutes).
Indigenous community eligible only if partnered with a Canadian municipal government or with a shared municipal service agreement.
Project must produce a business case assessing viable low-carbon community energy systems for a given site.
What expenses are eligible under Business case: Community Energy Systems?
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.
Who can I contact for more information about the Business case: Community Energy Systems?
You can contact Federation of Canadian Municipalities (FCM) by email at gmfinfo@fcm.ca or by phone at 1-877-417-0550.
Where is the Business case: Community Energy Systems available?
The Business case: Community Energy Systems program is available across Canada.
Is the Business case: Community Energy Systems a grant, loan, or tax credit?
Business case: Community Energy Systems is a Grant and Funding