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Business case: Community Energy Systems
Funding to develop business cases for low-carbon community energy systems
Funding available
$ 100,000
Location
Canada
Who can apply
Canadian municipal governments (e.g., towns, cities, regions, districts, and local boards)
See full eligibility
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
Eligible candidates
Eligible Industries
- All industries
Location
- Canada
Legal structures
- For-profit business
- Non-profit
- Public or Parapublic institution
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
Availability timeline
2026
Periods: 1
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
- A pre-application form
- An application form
- A project workbook
- Supporting documents listed in the application guide
Sources and recorded changes
- Source change captured
- Change recorded
- Record updated
A captured source change or record update does not confirm eligibility. Check the funder’s current rules before applying.
Business Case: Community Energy Systems - Grant Details Updated
Grant details for the Community Energy Systems business case funding have been updated with new application process information and timelines.
The grant page for Business Case: Community Energy Systems has been updated with new application process information. The application now follows a 6-phase process including pre-application submission, eligibility determination, full application submission, project officer review, peer and internal review, and final funding decision. Funding timelines have been clarified, with decisions expected within 3-5 months for studies and 4-6 months for capital projects. The grant continues to offer up to 50% of eligible costs, with higher rates available for smaller municipalities, northern communities, and eligible Indigenous communities. Applicants should review the updated application guide and contact GMF representatives before applying.
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 expenses
- Application preparation costs, up to $5,000, if incurred within 90 days before FCM receives the application.
- Administrative, consulting, translation, printing, equipment rental, supplies, travel, and staff remuneration costs directly related to the project.
- Meeting and public engagement costs, including facility rental, audiovisual equipment, accessibility supports, and cultural protocol costs.
Ineligible Costs and Activities
- Costs incurred before FCM receives the application, except limited full-application preparation costs.
- General overhead, promotional items, hospitality, and other ongoing business expenses.
- Purchase or lease of real property.
- Major capital costs not required for the project.
- Engineering, audit, or feasibility study costs already funded by the Government of Canada.
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
- Step 1: Review guide and prerequisites
- Download and review the application guide.
- Review the prerequisites and supporting documents listed in the guide.
- Review eligible and ineligible costs.
- Step 2: Contact GMF
- Discuss your project with a GMF representative.
- Step 3: Prepare your application
- Create a client profile in FCM’s funding portal.
- Complete the pre-application form and submit it through the portal.
- Step 4: Submit full application
- Complete the full application form and project workbook.
- Attach the required supporting documents.
- Submit the full application through the FCM funding portal.
- Step 5: Quebec municipalities only
- Submit the application through the Quebec government portal for MAMH review before GMF submission.
- Wait for MAMH to review and forward compliant applications to GMF.
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
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.
What is the deadline to apply?
The program is accepting continuous intake
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?
Application preparation costs, up to $5,000, if incurred within 90 days before FCM receives the application.
Administrative, consulting, translation, printing, equipment rental, supplies, travel, and staff remuneration costs directly related to the project.
Meeting and public engagement costs, including facility rental, audiovisual equipment, accessibility supports, and cultural protocol costs.
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.