Adopting community energy systems helps municipalities meet local energy needs while building a more resilient future. By integrating renewable and low-carbon energy sources—like district energy, solar or heat recovery—communities can boost energy efficiency, strengthen local economies, create jobs and protect residents from rising energy costs and climate-related disruptions.
Through GMF, municipalities of all sizes can access funding for business case studies, feasibility studies and capital projects. Our support helps communities explore and implement the solutions that work best for them—replacing high-emission systems with reliable, affordable and sustainable alternatives that benefit everyone.
What we fund
- Recovered or renewable thermal energy in new or existing facilities.
- District heating and cooling capital projects for new or existing buildings.
- 100% renewable electricity generation capital projects.
- Business cases that help municipalities identify the right technologies, while considering best practices, the local context, potential partners, GHG reductions, and financial rates of return.
- Feasibility studies that further identify and design the ideal community energy system while maximizing community benefits.
- Capital projects that demonstrate significant social and environmental benefits, as well as a strong businesses case.
- Studies that identify opportunity areas for community energy solutions within a municipality and help to create the enabling environment for implementation.
Benefits
- Reduce municipal operating costs.
- Improved community resilience to price shocks and service interruptions.
- Create local jobs and grow your local economy.
- Keep energy dollars in the community.
- Reduce municipal operating costs.
- Reuse of energy that is otherwise wasted.
What we do not fund
- Biomass combustion systems are eligible to be used only as a backup fuel source. The biomass combustion must be integrated into a broader low-carbon district energy system.
- Waste-to-energy systems. Please see our Organic Waste-to-Energy offer.
- Rooftop Solar PV systems for one building only.
- Fuel switching to natural gas from other sources of energy is not eligible, nor efficiency measures affecting natural gas systems.
Available funding
We support projects at various stages of development through grants and loans. Funding amounts are based on total eligible costs. Further details on eligible costs are provided on individual funding pages.
Business case: Community Energy Systems
Assess viable community energy projects and their business models
Read moreCapital project: Community Energy Systems
Construct, commission and rapidly deploy a community energy system
Read moreHave a project that goes above and beyond?
GMF’s Net-Zero Transformation offer funds the development and demonstration of new solutions to support the municipal transition to net-zero. We provide funding for plans, studies, pilots and capital projects for a wide range of innovative and replicable initiatives that have significant GHG reduction benefits.
Featured Resources
Our free learning resources build your knowledge in developing sustainable projects and accelerate your community’s transition to a resilient, net-zero future.
Webinar recording: An introduction to district energy
Learn how a centralized heating and cooling system can help your municipality reduce GHG emissions and save money.
Read moreCase study: Building sustainable communities with district energy
Learn how the City of New Westminster is planning to transform wastewater into green energy.
Read moreCase study: Energy-efficient community centre uses geothermal heat
Rural Municipality of Ritchot, MB
Read moreHave questions about Community Energy Systems?
Contact our Outreach team who can answer any questions you have relating to this funding opportunity.
Climate and sustainability funding for municipalities
Upgrade infrastructure, meet your local climate objectives, and contribute to a net-zero Canada by 2050.
Delivered by the Federation of Canadian Municipalities, GMF manages approximately $2.4B in programs funded by the Government of Canada.