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.
COMMUNITY EFFICIENCY FINANCING
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)
All Canadian municipal governments; Municipal partners applying in partnership with a municipal government.
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
Due to strong demand, CEF funding is nearing full commitment and will close to new Capital Program applications on September 1, 2025. If you have any questions about this change, please contact our Outreach team at gmfinfo@fcm.ca.
See the application guide for a list of eligible costs.
About CEF funding
CEF funding prioritizes projects that maximize community impact and innovation while ensuring balanced access across Canada. Applications for capital project funding are assessed based on the following criteria:
- Geographic balance: Supporting diverse regions and increasing uptake in provinces and territories where fewer CEF-funded programs currently exist.
- Innovation in program design: Encouraging the adoption of diverse financing models beyond traditional PACE, such as utility on-bill financing and third-party lender partnerships.
- Depth of impact: Prioritizing programs that:
- Target deeper energy retrofits.
- Achieve higher greenhouse gas (GHG) reductions.
- Include new capacity-building or stakeholder partnership models.
- Integrate climate resilience and adaptation measures.
Applications for CEF capital funding are reviewed through a competitive intake process to ensure fair and strategic allocation across all regions and sectors.
- CEF funding is nearing full commitment, and new Capital Program applications will close on September 1, 2025, or earlier if funding is fully allocated.
- Funding decisions are based on merit, with priority given to projects that demonstrate innovation, regional balance, and strong potential for community impact.
- Due to strong demand, full funding amounts may not always be awarded, and some applications may not receive funding.
We encourage applicants to carefully review the intake criteria and consider these factors when deciding whether to proceed with a full application.
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.
The FCM Funding Portal will be unavailable soon due to a scheduled upgrade.
At this time, applications for this funding offer may not be accepted. Previously submitted applications continue to be processed. If you are considering applying for this funding offer, please contact gmfinfo@fcm.ca
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
Municipal and community buildings
Energy
Save energy, cut costs: Using GMF support in Quebec
Discover how municipalities in Quebec are upgrading their community buildings to lower costs, create local jobs and enhance building comfort.
Sustainable affordable housing
Energy
Webinar recording: Building for the future with better community housing
Watch the discussion to learn about an award-winning sustainable affordable housing project.
Community efficiency financing
Energy | Housing
Creating inclusive energy retrofit programs
Our Integrating equity principles within community efficiency financing programs: A guide for Canadian municipalities and partners is designed to help municipalities create home energy retrofit financing programs that work for everyone.
Sustainable affordable housing
Energy
Webinar recording: How housing providers can help residents during energy retrofits
Watch the discussion on how to take advantage of the Housing Providers’ Toolkit.
Local energy generation
Energy
Webinar recording: New GMF funding and support to accelerate community energy systems
Watch our webinar to explore GMF’s new funded learning offer: Accelerating Community Energy Systems. Discover best practices, funding insights and strategies for your municipality.
Community efficiency financing
Energy | Housing
Unlocking the potential of PACE financing: A comprehensive report on Canadian legislation
Read our informative report to discover an overview of PACE legislation in Canada and learn how a PACE initiative can benefit your community.
Sustainable affordable housing
Energy | Housing
Aspen Heights: Redefining affordable housing in Saskatoon
Sustainable affordable housing
Energy | Housing
Heartland Housing Foundation: Building a sustainable future in Fort Saskatchewan
Sustainable affordable housing
Energy | Housing
Building a better future: CABN’s net-zero affordable housing pilot
Sustainable affordable housing
Energy | Housing
Pine Tree Park: Transforming affordable housing with energy efficiency and solar power
Sustainable affordable housing
Energy | Housing
Rossland Yards: Transforming affordable housing in Rossland, BC
Sustainable affordable housing
Energy | Housing
YWCA Banff: Building stability and community through affordable housing
Sustainable affordable housing
Energy
Transforming communities with Sustainable Affordable Housing: Article series
In a series of six articles, we highlight impactful projects funded by GMF's Sustainable Affordable Housing (SAH) initiative, demonstrating how energy-efficient, community-centered housing can foster resilience and well-being.
Municipal and community buildings
Energy
Guide: Equity and non-energy benefits of community building retrofits
Explore the equity and other non-energy benefits of retrofitting community buildings.
Municipal and community buildings
Energy
Webinar recording: Accelerate your community’s net-zero transformation with new GMF funding
Watch our webinar to discover how GMF’s new funding can help you upgrade infrastructure and reduce local GHG emissions.
Community efficiency financing
Energy
Webinar recording: The real impact of home-energy efficiency financing
Watch our webinar to discover how you can achieve your climate goals by implementing a home-energy efficiency financing program in your community
Sustainable affordable housing
Energy
Webinar recording: Transform your approach to energy efficiency with the Housing Providers’ Toolkit
Watch the discussion on how to take advantage of the Housing Providers’ Toolkit.
Municipal and community buildings
Energy
Guide: Taking your indoor swimming pool to net zero
A guide with key measures and lessons learned to help you build a plan for net-zero indoor swimming pools.
Municipal and community buildings
Energy
Webinar recording: How to start reducing GHG emissions in community buildings
Watch the discussion on how to create a GHG reduction pathway for community buildings.
Municipal and community buildings
Energy | Housing
Webinar recording: How to get a project started, tips for small francophone communities
If you’re a small francophone municipality looking to develop sustainability projects and access funding, watch this webinar to learn how others overcame common challenges.
Municipal and community buildings
Energy
Factsheets: Community Buildings Retrofit initiative
Learn how to retrofit existing community buildings to lower GHG emissions and extend their life cycle.
Municipal and community buildings
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.
Municipal and community buildings
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.
Community efficiency financing
Energy
Video: Durham Region, ON launches novel financing model
A video showcasing innovative and accessible financing options for home-energy upgrades.
Municipal and community buildings
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.
Community efficiency financing
Energy
Community Efficiency Financing market guide
Guide to help Canadian municipalities assess potential home energy upgrade programs
Local energy generation
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.
Municipal and community buildings
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.
Municipal and community buildings
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.
Municipal fleet electrification
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.
Sustainable affordable housing
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.
Municipal and community buildings
Energy
Webinar: Transitioning ice rinks to net-zero
Learn the basics of building retrofits for facility buildings
Municipal and community buildings
Energy
Resource library: Community Buildings Retrofit
Find practical case studies and guidance for planning your local community building retrofit.
Community efficiency financing
Energy
Webinar recording: Introduction to local home-energy financing programs
Learn the basics on delivering local financing programs for home-energy upgrades.
Community efficiency financing
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.
Community efficiency financing
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.
Community efficiency financing
Energy
Resources: Community Efficiency Financing
Read guidebooks and case studies to see how municipalities are designing home upgrade financing programs.
Community efficiency financing
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
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: 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: 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.
Community efficiency financing
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.
Community efficiency financing
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.
Community efficiency financing
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 | 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: 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
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.
Municipal and community buildings
Energy
GMF’s Municipal Energy Roadmap
Solutions for Canadian communities to achieve significant GHG emissions reductions in buildings and meet long-term sustainability objectives.
Municipal and community buildings
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.
Sustainable affordable housing
Energy
Regional Energy Coaches
Regional Energy Coaches help affordable housing providers plan energy efficiency retrofits and new builds.
Municipal and community buildings
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.
Community efficiency financing
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.
Community efficiency financing
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.
Related Projects
See All
Municipal and community buildings
Energy
Case study: Retrofitting three community facilities for shared heating
Municipal and community buildings
Energy