Open
Business case: Community Energy Systems
Last Update: March 4, 2026
Canada
Funding to develop business cases for low-carbon community energy systems
Grant and Funding
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.
At a glance
Funding available
Financing goals
- Integrate new technologies
- Increasing 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
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
- 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
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
gmfinfo@fcm.ca
1-877-417-0550
