
Open
Capital project: Community Energy Systems
Last Update: December 17, 2025
Canada
Funding to build and deploy renewable community energy systems
Grant and Funding
Loans and Capital investments
At a glance
Funding available
Financing goals
No objectives are currently available
Eligible Funding
- Maximum amount : 10,000,000 $
- Up to 80% of project cost
Timeline
- Unspecified
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 group
- All the groups
Revenue structure
- All structures
Scope
- All dimensions
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.
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.
Examples of admissible projects:
$ 9,960,000
Build a geothermal district energy loop for municipal buildings and housing
Eligibility
- 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.
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).
Selection criteria
- 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).
How to apply
1
Review the application guide
- Download and review the Community Energy Systems application guide
2
Discuss your project with GMF
- Contact a GMF representative to discuss your project (gmfinfo@fcm.ca or 1-877-417-0550)
3
Prepare prerequisites and budget
- Review prerequisites and supporting documents (Appendix D of the application guide)
- Review eligible and ineligible costs
- Ensure you have a detailed project budget
- Secure other funding sources for your project
4
Create a portal profile
- Create a client profile in the FCM funding portal
5
Submit the pre-application
- Submit the pre-application form through FCM’s funding portal
6
Receive eligibility determination
- Wait for a GMF outreach officer/advisor to review your pre-application
- Receive eligibility determination within 15 business days of receipt
7
Complete the full application
- If invited, access the full application form in FCM’s funding portal
- Complete the Excel project workbook template provided by GMF
8
Submit the full application
- Attach required supporting documents
- Submit the full application and project workbook to GMF via the FCM funding portal
9
Respond to GMF review
- Work with the assigned GMF project officer to address any questions
- Provide clarifications needed to confirm accuracy and completeness
10
Proceed through peer review
- Undergo external peer review and internal analysis
- Wait for a funding recommendation to GMF Council and FCM’s Board of Directors
11
Receive the funding decision
- Wait for FCM’s Board of Directors to approve the funding recommendation for capital projects
- Expect a decision about four to six months after full application submission
12
Submit to MAMH in Quebec
- After completing the standard steps, save your application using the required filename format
- Log in to the Portail gouvernemental des affaires municipales et régionales and submit via “File Transfer”
- Select the applicable program, upload your files, and submit the transfer
13
Wait for MAMH review
- Receive confirmation from MAMH
- Allow up to 15 working days for MAMH to review and forward compliant applications to GMF
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
gmfinfo@fcm.ca
1-877-417-0550
Canada
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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.
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