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
- 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
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
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