Capital project: Community Energy Systems

• 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)

• The applicant must be a Canadian municipal government (e.g., town, city, region, district or local board) or an eligible municipal partner (e.g., private sector entity, municipally-owned corporation, NGO/not-for-profit, regional/provincial/territorial organization delivering municipal services, or a research institute such as a university).
• If the lead applicant is an Indigenous community, it must partner 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 be a capital project to construct, commission and rapidly deploy a 100% renewable community energy system (e.g., district energy, solar, geothermal, wind, heat recovery).
• The project must build on a completed feasibility study assessing technical and financial feasibility, and environmental, social and economic impacts.
• The applicant must provide records of community support for the project (including approval from local government council) and initiation of an impact assessment process where applicable.

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).

• Degree of innovation and overall impact (GMF aims to fund the most innovative and impactful initiatives; not all eligible projects will be approved).
• Expected environmental outcomes, including the project’s ability to mitigate greenhouse gas (GHG) emissions.
• Expected social benefits for the community.
• Strength and timing of financial payback (within a targeted timeframe of three years after application approval).
• “Multi-solving” benefits (higher evaluation scores for excellence in one or more areas such as socio-economic benefits, biodiversity, sustainable materials management, and meaningful engagement/collaboration with rights holders and stakeholders).

• 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.

• 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.