Open
Capital project: Community Energy Systems
Funding to build and deploy renewable community energy systems
Last Update: March 4, 2026
Funding available
$ 10,000,000
Timeline
- Open continuously
Location
Canada
Overview
This program offers a combined grant and loan covering up to 80% of eligible costs, up to a maximum of $10 million, to help municipalities and their partners construct, commission, and rapidly deploy a 100% renewable community energy system. Eligible activities include implementing low-carbon renewable energy solutions such as district energy systems, solar panels, geothermal heat pumps, wind turbines, and heat recovery infrastructure.
/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 : 10,000,000 $
- Up to 80% of project cost
Timeline
- Open continuously
Eligible candidates
Eligible Industries
- Utilities
- Construction
- Administrative and support, waste management and remediation services
- 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
- Construction and commissioning of a fully renewable community energy system (e.g., neighborhood energy system / district heating).
- Deployment of local renewable electricity solutions (e.g., solar panels) to power multiple buildings.
- Installation and commissioning of low-emission local energy solutions (e.g., geothermal pumps, wind turbines).
- Implementation of heat recovery systems integrated into a community energy system.
Documents Needed
- Pre-application form (to be submitted via the FCM funding portal)
- Application form (complete application)
- Project notebook (according to the template provided by the FMV, to be attached to the application)
- Supporting documents required by the funding application guide (according to your project)
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 (as municipal partners)
- Non-governmental organizations (as municipal partners)
- Not-for-profit organizations (as municipal partners)
- Research institutes, including universities (as municipal partners)
Who is not eligible
- Indigenous communities applying as a lead applicant without partnering with a Canadian municipal government on an eligible project and without a shared service agreement related to municipal infrastructure, climate change or adaptation.
- Biomass combined heat and power (CHP) electricity projects (i.e., CHP systems with biomass as the source) submitted under the Community Energy Systems (CES) offer.
- In grid-connected communities: projects proposing harvested wood as a biomass fuel source.
Ineligible Costs and Activities
- Combined heat and power (CHP) systems where biomass is the energy source (biomass electricity).
- Using harvested wood as a biomass fuel source in communities connected to a provincial or territorial electric grid.
Eligible geographic areas
- Canada (Canadian municipal governments and eligible municipal partners).
- Quebec (additional provincial review process applies for Quebec municipalities through the ministère des Affaires municipales et de l'Habitation (MAMH) before submission to FCM).
Processing and Agreement
- GMF reviews the pre-application and confirms whether the organization and initiative can proceed (response within 15 business days).
- After the full application is submitted, a GMF project officer reviews it for accuracy and completeness and follows up to resolve questions.
- An external peer review panel evaluates capital applications, alongside an internal review that informs a funding recommendation.
- FCM’s Board of Directors makes the funding decision for capital projects (typically 4–6 months after full application submission); being invited to submit a full application does not guarantee approval.
- If approved, an agreement between FCM and the applicant is prepared.
Additional information
- Applications are accepted year-round, but the offer may close once all funding has been allocated.
- Not all eligible projects are funded; GMF prioritizes initiatives that are considered the most innovative and impactful.
- Projects are expected to provide solid financial payback within a targeted timeframe of three years after application approval.
- Capital projects that include new infrastructure assets must be built outside the current 100-year floodplain unless evidence of protection can be provided.
Contacts
Frequently Asked Questions about the Capital project: Community Energy Systems Program
Here are answers to the most common questions about the Capital project: 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 Capital project: Community Energy Systems?
This program offers a combined grant and loan covering up to 80% of eligible costs, up to a maximum of $10 million, to help municipalities and their partners construct, commission, and rapidly deploy a 100% renewable community energy system. Eligible activities include implementing low-carbon renewable energy solutions such as district energy systems, solar panels, geothermal heat pumps, wind turbines, and heat recovery infrastructure.
How much funding can be received?
Capital project: Community Energy Systems Funds up to 80% of admissible expenses, capped at $10,000,000 per project.
Who is eligible for the Capital project: Community Energy Systems program?
To be eligible for the Capital project: Community Energy Systems program, you must:
Municipal partners (e.g., private sector entities, municipally-owned corporations, NGOs, not-for-profits, research institutes) are eligible.
An Indigenous community may be lead applicant only if partnering with a Canadian municipal government or under a shared service agreement.
Must submit via FCM’s GMF funding portal (pre-application then full application).
What expenses are eligible under Capital project: Community Energy Systems?
Construction and commissioning of a fully renewable community energy system (e.g., neighborhood energy system / district heating).
Deployment of local renewable electricity solutions (e.g., solar panels) to power multiple buildings.
Installation and commissioning of low-emission local energy solutions (e.g., geothermal pumps, wind turbines).
Implementation of heat recovery systems integrated into a community energy system.
Who can I contact for more information about the Capital project: Community Energy Systems?
You can contact Green Municipal Fund (GMF) by email at gmfinfo@fcm.ca or by phone at 1-877-417-0550.
Where is the Capital project: Community Energy Systems available?
The Capital project: Community Energy Systems program is available across Canada.
Is the Capital project: Community Energy Systems a grant, loan, or tax credit?
Capital project: Community Energy Systems is a Grant and Funding