
Accelerating community energy systems
Last Update: January 24, 2025
Canada
Support for advancing low-carbon community energy systems
Accelerating community energy systems at a glance
Eligible Funding
- Max. $200,000
- Up to 50% of project cost
Timeline
- Continuous Intakes
Financing Type
Grant and Funding
Eligible Industries
- Public administration
Grant Providers
- Federation of Canadian Municipalities (FCM)
- Green Municipal Fund
Status
Open
Overview of the Accelerating community energy systems program
The grant offers up to $200,000, covering up to 50% of eligible costs, and aims to accelerate community energy systems (CES) through studies identifying low-carbon energy opportunities and implementation mechanisms. Eligible activities include geospatial analysis, modeling energy demand, stakeholder engagement strategy development, and drafting municipal land-use policies that enable CES.
Financing terms and conditions
This grant provides funding to support local community energy system initiatives with a primary focus on co-financing. The modalities are structured to accommodate various project scales and community sizes.
- Grant covers up to 50% of eligible project costs, with a maximum award of $200,000.
- Projects in municipalities or regional governments with populations under 10,000 may qualify for a grant covering up to 80% of eligible costs.
- Northern and eligible Indigenous communities applying for the first time can receive up to 100% coverage of eligible costs.
Eligible projects & activities
This grant supports projects that focus on assessing and developing community energy systems to promote low-carbon energy solutions. Eligible activities aim to identify opportunities and mechanisms for implementing sustainable energy systems within municipalities.
- Identifying, evaluating, and prioritizing opportunities for low-carbon community energy systems, including renewable and district energy systems.
- Conducting a geospatial analysis to determine optimal neighbourhoods for successful community energy system implementation.
- Modeling baseline energy demand for priority areas and projecting energy consumption and seasonal load profiles.
- Articulating concrete next steps for developing new community energy systems and increasing connections to existing systems.
- Developing a stakeholder engagement strategy to build support for community energy systems.
- Identifying and prioritizing mechanisms for accelerating community energy development, such as property tax rebates or fast-tracked approval processes.
- Advancing implementation mechanisms by clarifying legal, technical, and regulatory requirements.
- Developing municipal land-use policies to support community energy system zones.
- Conducting market research to gauge stakeholder awareness and support for district energy systems.
- Carrying out an equity assessment to analyze the impact on equity-deserving groups, addressing barriers and enhancing positive impacts.
Eligibility criteria of the Accelerating community energy systems program
Eligibility for this grant requires compliance with specific criteria related to the applicant’s organizational structure and partnerships.
- The applicant must be a Canadian municipal government such as towns, cities, regions, districts, and local boards.
- Municipally owned corporations, for example, a municipal utility, are eligible.
- An Indigenous community can be a lead applicant if they partner with a Canadian municipal government on an eligible project or hold a shared service agreement related to municipal infrastructure, climate change, or adaptation.
Who is eligible?
Canadian municipal governments, municipally-owned corporations, and Indigenous communities collaborating with municipal governments are eligible to apply for these grants.
Eligible expenses
This grant supports projects that aim to identify and develop opportunities for low-carbon community energy systems. Eligible activities include comprehensive studies and strategic planning to create frameworks for implementing sustainable energy solutions within communities.
- Identification, evaluation, and prioritization of opportunity areas for community energy systems using geospatial analyses.
- Modeling anticipated baseline energy demand and seasonal load profiles for prioritized areas.
- Articulating next steps and completing feasibility studies for community energy systems.
- Developing robust stakeholder engagement strategies to foster partnerships and support.
- Assessing and prioritizing implementation mechanisms to accelerate community energy development.
- Advancing implementation mechanisms through legal, financial, and technical evaluations.
- Development of municipal land-use policies supportive of community energy systems.
- Conducting market research to gauge support for district energy systems from stakeholders.
- Conducting equity assessments to ensure fair distribution of project benefits and burdens.
Eligible geographic areas
This grant is open to Canadian municipal governments and municipally owned corporations across Canada. Eligible Indigenous and northern communities can also apply, especially those partnering with municipalities.
- Canadian municipal governments, including towns, cities, regions, districts, and local boards.
- Municipally owned corporations within Canada, such as municipal utilities.
- Indigenous communities partnering with Canadian municipal governments.
- Northern communities as defined by the three territories and northern regions of seven provinces in Canada (Newfoundland and Labrador, Québec, Ontario, Manitoba, Saskatchewan, Alberta, and British Columbia).
Eligibility criteria of the Accelerating community energy systems program
The evaluation and selection of projects for this grant are based on specific criteria to ensure alignment with the grant’s objectives.
- Potential to lead to significant greenhouse gas (GHG) reductions.
- Strong support from political leaders, senior municipal staff, the local community, and implementation partners such as utilities, developers, or landowners.
- Support from official plans, secondary plans, community energy plans, or climate action plans.
- Leadership by a multidisciplinary team representing key departments.
- Collaboration with key implementation partners and equity-deserving groups or Indigenous communities.
- Strong integration of multi-solving approaches, such as maximizing environmental and socio-economic benefits.
- Advancement of equity, diversity, inclusion, and Reconciliation objectives.
- Increased climate resilience.
How to apply to the Accelerating community energy systems program
1
Access the Application Guide
Download and review the application guide to understand requirements and process details.
2
Initial Contact with GMF
Reach out to a GMF representative to discuss your project by contacting them at gmfinfo@fcm.ca or calling 1-877-417-0550.
3
Prepare Required Documents
- Review the list of prerequisites and supporting documents in appendix D of the application guide.
- Ensure you have a detailed project budget and are securing other funding sources for your project.
4
Create FCM Funding Portal Profile
- Visit the FCM funding portal to create your profile, and request a PIN to access the system.
- If you already have a profile, skip to the next step.
5
Pre-application Submission
Complete the pre-application form available on the FCM funding portal.
6
Eligibility Determination
- A GMF outreach officer will review your pre-application to determine eligibility.
- You will receive a response within 21 business days about your eligibility to proceed.
7
Full Application Submission
- If eligible, access and complete the full application form through the FCM funding portal.
- Submit the completed application form, Excel project workbook, and required supporting documents.
8
Application Review by GMF Project Officer
- A GMF project officer will be assigned to review your application for completeness and accuracy.
- Work with the officer to resolve any remaining questions.
9
Peer Review and Internal Review
- An external peer review panel and internal analysis will evaluate your application.
- Recommendations will be made to GMF’s managing director and FCM’s Board of Directors.
10
FCM Funding Decision
- Funding decisions for plans, pilots, and studies are determined by GMF’s managing director within three to five months.
- For capital projects, FCM’s Board of Directors makes the decision within four to six months.
11
Specific Process for Quebec Municipalities
- Completed applications must be submitted to Quebec's MAMH before FCM processing.
- Submit applications via the Portail gouvernemental des affaires municipales et régionales after MAMH assessment.
Contact Federation of Canadian Municipalities (FCM)
gmfinfo@fcm.ca
1-877-417-0550
Apply to this program

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