Capital program: Loan or credit enhancement for local home-energy upgrade financing program
Implement or scale-up a full version of your local home-energy upgrade program. Finance your program with a loan or credit enhancement.
ENERGY
Funding Snapshot
Two funding options are available:
Capital loan combined with grant
Loan to a maximum of $10 million
Grant of up to a maximum of 50% of the loan amount to support start-up and operating costs
The combined loan and grant can cover up to 80% of total eligible program costs
Credit enhancement:
Credit enhancement of $2 million pledged by GMF to support third-party financing
Applicant must demonstrate a minimum leverage ratio of 5:1 (credit enhancement to third party capital)
Grant of up to $5 million (not to exceed 50% of total eligible costs and not to exceed total start-up and operating costs)
The following entities are not eligible to receive funds directly:
Homeowners
Federal government entities and any organizations established by those entities
Provincial and territorial government entities and any corporation that they own or control
Update to Community Efficiency Financing (CEF) initiative criteria
As of June 30, 2023 (11:59 P.M. PT), all full applications received will be considered under updated CEF criteria. This update is for capital program applications only.
Why is this being updated?
The update has two strategic objectives:
- Balanced geographic funding: increasing uptake in provinces and territories that have not yet launched capital programs with CEF funding and the adoption of diverse funding models beyond Property Assessed Clean Energy (PACE)
- Raise the bar for innovation: supporting more diverse efficiency financing models, such as on-bill financing and direct lending programs in all regions of Canada. In addition, CEF will be prioritizing applications that underscore innovation in their program design; for example:
- targeting deeper energy retrofits
- higher GHG reductions
- deploying new capacity development activities
- new stakeholder/administration model
- resiliency and adaptations components
- and more
It does not include changes to the client application process.
The update will include Seed and Growth streams, which will not impact the application process for clients.
- Seed stream: funding for underserved jurisdictions and underrepresented program financing models, specifically utility on-bill and third-party lender financing.
- Growth stream: funding open to all other applications.
Deferral policy
The CEF update includes an application deferral policy of up to three months to prioritize the most innovative and strategic program applications if the initiative experiences oversubscription. There are no immediate plans to defer any applications and the policy will only be applied if needed.
Questions?
Contact our Outreach team who can answer any questions regarding the CEF update.
gmfinfo@fcm.ca
We offer two options to capitalize a local financing program for home-energy upgrades:
- Loan combined with grant
- Credit enhancement combined with grant
Loan combined with grant
Access a competitive-rate loan in combination with a grant to implement a local financing program for home-energy upgrades. Funding is intended to support start-up, operating and capital costs over a four-year implementation period.
- Loan details: Up to $10 million per local program provided for on-lending within the community for home-energy upgrades on private property and associated costs. Up to 30% of the approved loan amount can be used for approved non-energy improvements (e.g., water conservation, climate adaptation, alternative energy) at the individual participating home
- Grant: Up to 50% of the GMF loan amount to cover program start-up costs (e.g., legal services, procurement of IT tools, website development) and multi-year operating costs (e.g., staffing, marketing and promotions)
This option also includes a loan loss provision to mitigate the default risk of participating homeowner loans. A dedicated loss reserve is established for each program to cover any individual loan losses that might be realized. Amounts committed to the loss reserve are considered an eligible cost and funded by the grant allocation.
For full details, please read our application guide.
Credit enhancement combined with grant
A credit enhancement option is available to incentivize private investment into local financing programs for home-energy upgrades. This involves a municipality working in partnership with a third-party lender (e.g., financial institution, impact investor, or utility company) who provides or arranges capital to finance home-energy upgrades.
Applicants partnering with participating lenders can access this funding to offset the lenders’ risk by providing partial coverage for losses that may arise, while also unlocking preferential financing products for homeowners that would otherwise not be made available in the absence of the credit enhancement (e.g., below-market interest rates, extended repayment terms, or expanded underwriting criteria).
To be eligible, applicants must demonstrate that they have secured capital commitments from lenders to satisfy a minimum 5:1 leverage ratio (i.e., ratio of loan capital to credit enhancement). For example, a $1 million loss reserve pledged by FCM must mobilize at least $5 million in third-party loan capital.
For full details, please read our application guide.
Prerequisites
- A community energy, sustainability or climate action plan, or similar, that identifies energy efficiency and renewable energy in the residential sector as a priority area for action
- Evidence of having completed detailed program design work
Notes
Funding is subject to availability. We reserve the right to make changes to eligibility criteria and the types of projects funded through this offer.
How to Apply
- Review the application guide. Make sure to look at the eligibility criteria and required document sections.
- Visit the FCM funding portal to create your profile and request a PIN to access the system. Already have an FCM funding portal profile? Skip to Step 3.
- Complete the pre-application form available on the FCM funding portal.
- Submit the form to GMF following the instructions in the application guide. Applicants will receive a response within 15 business days of receipt of the initial proposal.
- Eligible projects will be invited to submit a full application.
If you are not eligible to apply, sign up for our e-newsletter to stay informed about other funding opportunities.
Sign up for alerts whenever a new funding opportunity is added.
Get alerted anytime a new funding opportunity is added to see if you could be eligible for more funding on your projects.
Need help to see if this is the right funding for you?
Contact our Outreach team who can answer any questions you have relating to this funding opportunity.
Related Resources
See All
Energy
Webinar Recording: Enhance comfort and energy savings with municipal building envelopes
Watch this webinar to explore strategies for optimizing municipal building envelopes, enhancing both comfort and energy efficiency.
Energy
Webinar recording: Energy Efficiency for Reaching Net-Zero
Learn how municipalities can advance energy efficiency initiatives to reach net-zero targets.
Energy
Webinar recording: Planning for net-zero emissions
Municipal leaders and experts discuss strategies for achieving net-zero emissions targets and scaling up climate action efforts at the local level.
Energy
Video: Durham Region, ON launches novel financing model
A video showcasing innovative and accessible financing options for home-energy upgrades.
Energy
Video: Retrofitting community buildings for maximum GHG reduction impact
A short video explaining the pathway approach of retrofitting a building - using an outcomes-oriented approach - to achieve (near) net zero carbon buildings over time.
Energy
Community Buildings Retrofit Advisory Service
The CBR Advisory Service is a new service that is intended to help smaller municipalities by matching them to industry leaders who understand best practices in the CBR field and can help provide personalized coaching and advice, including clarified goals, insights, and replicable results.
Energy
Community Efficiency Financing market guide
Guide to help Canadian municipalities assess potential home energy upgrade programs
Energy
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.
Energy
Webinar recording: Supporting small and medium municipalities through the Community Buildings Retrofit initiative
Watch this webinar recording to learn about successful examples of completed retrofits, how municipalities can choose the right funding options and to answer any questions about the funding process.
Energy
Guide: Taking your indoor ice rink to net zero
A practical guide to get you started on your own net zero retrofit plan and to help you develop an actionable roadmap to net zero ice rinks.
Transportation
Priority Municipal Actions to Enable Zero Emission Vehicle Adoption
GMF and Low Carbon Cities Canada (LC3) collaborated to create six priority municipal actions to accelerate zero emission vehicle adoption.
Energy
Understanding energy efficiency: A guide for affordable housing providers
This guide is for affordable housing providers, such as municipalities or housing cooperatives, interested in improving energy efficiency in their buildings.
Energy
Webinar: Transitioning ice rinks to net-zero
Learn the basics of building retrofits for facility buildings
Energy
Resource library: Community Buildings Retrofit
Find practical case studies and guidance for planning your local community building retrofit.
Energy
Webinar recording: Introduction to local home-energy financing programs
Learn the basics on delivering local financing programs for home-energy upgrades.
Energy
Video: Saskatoon delivers Saskatchewan’s first local home-energy financing program
Learn how the City of Saskatoon designed its Home Energy Loan Program (HELP) to help residents retrofit their homes and reduce GHG emissions.
Energy | Housing
Video: Nelson scales up local program to support home-energy upgrades
In this video, Carmen Proctor, Climate & Energy Manager at the City of Nelson, tells the story of the program’s success to date, shares key lessons learned from running the program, and highlights their next steps to scale up the program.
Energy
Resources: Community Efficiency Financing
Read guidebooks and case studies to see how municipalities are designing home upgrade financing programs.
Energy
Video: Kingston supports homeowners with financing program for energy upgrades
Hear from Julie Salter-Keane, Manager of Climate Leadership at the City of Kingston, as she discusses the City’s program implementation and their approach to designing a strong local program.
Energy
Webinar recording: Recommissioning community buildings
Watch our webinar recording to learn more about existing building recommissioning (EBCx). Hear about lessons learned from experts in recommissioning local facilities and learn the steps to help ensure your community’s building systems are working together at optimal levels for comfort and efficiency.
Energy
Factsheet: Governance components for deep decarbonization
This factsheet introduces senior municipal leaders to key components of a good governance structure for deep emissions reductions and implementation actions.
Energy
Factsheet: Governance strategies for deep decarbonization
This factsheet provides senior municipal leaders with governance strategies for achieving deep emissions reductions in each decarbonization pathway.
Energy
Factsheet: Municipal governance for deep decarbonization
This factsheet provides senior municipal leaders with the pathways and steps for achieving deep decarbonization and net-zero emissions by 2050.
Energy
Climate Action Accelerator for Community Buildings
Is your municipality looking to drive climate action by reducing greenhouse gas emissions in municipally-owned buildings, but is unsure how to maximize time and impact, secure funding and partnerships, or how to get started? FCM’s Climate Action Accelerator for Community Buildings will help up to 20 small and mid-sized municipalities take climate action within their building portfolios.
Energy
Video: Tips from Iqualuit’s LEED Silver aquatic centre
In this video, you will learn the key elements and lessons learned that helped Iqaluit succeed on building its energy efficient aquatic centre.
Energy
Video: New municipal financing program removes barriers to energy-efficiency upgrades for homeowners
Marie-Pierre Paquette discusses how the municipalities of Plessisville, Varennes and Verchères banded together to launch a joint pilot project that would bring energy-efficient home renovations within reach for more homeowners.
Energy
Video: Introduction to home energy upgrade programs
Watch this video to learn more about home energy upgrade programs and how they can help municipalities to tackle climate change, save money, and invest in the local economy.
Energy
Video: New municipal financing program removes barriers to energy-efficiency upgrades for homeowners
Marie-Pierre Paquette discusses how the municipalities of Plessisville, Varennes and Verchères banded together to launch a joint pilot project that would bring energy-efficient home renovations within reach for more homeowners.
Energy
Webinar recording: How to adapt green municipal projects to stand the test of time
Watch this webinar recording and explore how to build and adapt projects to make them truly sustainable in the long term.
Energy | Housing
Webinar recording: Take your project from study to capital
Watch this webinar recording and discover how others have successfully converted studies into a capital project that provides social, economic and environmental benefits.
Energy
Webinar recording: The 5 keys to a green municipal project business case
Watch this webinar recording and discover the five critical focus areas you need to address to get your project started, from financing and partnerships to integrating a triple-bottom-line approach.
Energy
Introducing GMF’s Community Buildings Retrofit initiative
Discover how GMF can support your community building retrofits, from funding for energy monitoring, building commissioning, studies and capital projects to capacity-building activities and resources.
Energy
Article series: Meet LC3’s climate leaders
Read our article series to get to know the leaders of the Low Carbon Cities Canada (LC3) network, and learn how they are advancing effective ways to address climate change in big cities.
Energy
GMF’s Municipal Energy Roadmap
Solutions for Canadian communities to achieve significant GHG emissions reductions in buildings and meet long-term sustainability objectives.
Energy
Primer for elected officials: Municipal Energy Roadmap
This primer for elected officials outlines how the Municipal Energy Roadmap can help choose the right energy-related solutions for your buildings.
Energy
Regional Energy Coaches
Regional Energy Coaches help affordable housing providers plan energy efficiency retrofits and new builds.
Energy
Factsheets: Municipal Energy Roadmap
These factsheets offer specific guidance around building-level solutions, community-level solutions, and long-term strategies to help you drill down and meet your objectives.
Energy
Webinar recording: How to create an efficiency financing program for your community
An overview of the funding options, eligibility and application details of GMF’s Community Efficiency Financing program.
Energy
Factsheets: Community Efficiency Financing
Learn how to design, deliver and market a home upgrade financing program for your community.
Energy | Housing
Webinar recordings: Best practices in municipal sustainability
How are cities and communities of all sizes tackling their environmental challenges? Find out from our five-part webinar series on innovations and opportunities in municipal energy, waste, water, transportation and land use initiatives.
Energy
Tool for municipal clean energy program development: Use the Energy Poverty and Equity Explorer to reduce energy poverty and greenhouse gases
The Energy Poverty and Equity Explorer tool, developed by Canadian Urban Sustainability Practitioners (CUSP), offers municipalities access to relevant data so they can better understand energy poverty, and other equity and affordability challenges in their communities.
Energy | Housing
Webinar recording: How to prepare a GMF capital project application
Need advice for preparing your GMF capital project funding application? Watch our webinar recording to hear tips from our staff and find out what reviewers are looking for.