Capital project: Community Energy Systems
Construct, commission and rapidly deploy a community energy system
LOCAL ENERGY GENERATION
Read the guide for more information on creating a successful application.
Read the application guideFunding Snapshot
- Combined grant and loan for up to 80% of eligible costs.
- Combined grant and loan up to a maximum of $10 million.
- Grant up to 15%** of project costs.
Additional 5% grant available if the project involves the remediation of a brownfield site.
Note: The grant contribution is determined as a function of the loan and cannot be separate.
The following organizations are eligible for GMF funding:
- Canadian municipal governments (e.g., towns, cities, regions, districts, and local boards).
- Municipal partners, which include:
- private sector entities
- municipally-owned corporations
- regional, provincial or territorial organizations delivering municipal services
- non-governmental organizations
- not-for-profit organizations
- research institutes (e.g., universities)
- An Indigenous community is an eligible lead applicant if they are partnering with a Canadian municipal government on an eligible project, or if they have a shared service agreement with a Canadian municipal government related to municipal infrastructure, climate change or adaptation.
A capital project to construct a 100% renewable community energy system.
Applications are accepted year-round, though this offer may close when all funding has been allocated.
** Municipalities with exceptional projects may qualify for a higher loan and grant amount. Contact us to find out if your municipality is eligible.
What we fund
We offer combined loan and grant funding to support municipalities and their partners in constructing, commissioning and rapidly deploying a successful implementation of a low-carbon community energy system.
Your project should deploy a system that mitigates GHG emissions, creates social benefits, and provides solid financial payback within a targeted timeframe of three years after application approval and should be integrated into your municipality’s asset management register/plan or municipal budget.
What your project needs to achieve
All projects that meet the criteria on this page are eligible. Please note that we consider several factors in making a funding decision. We strive to fund the most innovative and impactful initiatives, so not all eligible projects will be approved for funding.
This project must build on a completed feasibility study that has assessed the technical and financial feasibility of the proposed project, as well as the environmental, social, and economic impacts.
Eligible applicants must also provide records of community support for the project including but not limited to records of approval from local government council, and initiation of the impact assessment process, where applicable.
Further information regarding the offer, including minimum requirements for feasibility studies, can be found in the Community Energy Systems application guide
- Requirements for all Community Energy Systems projects
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Capital projects must meet the following requirements:
- A minimum of two buildings are required for district energy projects, and renewable electricity systems should be able to power multiple systems and buildings.
- For thermal energy projects: Your initiative must reduce GHG emissions associated with fossil fuel or grid electricity use by at least 40 percent compared to current performance. You must be able to achieve this target within three years of implementation.
- Resilience
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Projects must meet minimum requirements related to climate resilience:
- Capital projects that include new infrastructure assets must be built outside the current 100-year floodplain of the most recent floodplain map, unless evidence can be provided of protection to safeguard the asset.
- Projects with new infrastructure assets valued over $2 million must conduct a Climate Risk Assessment (i.e., Infrastructure Canada Climate lens, ISO 14091, PIEVC High Level Screening Guide or equivalent) and address risks identified. A Climate Risk Assessment must be included in study workplans (where relevant) and is submitted as part of the pre-application for relevant capital projects.
- Equity considerations
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GMF recognizes that many urgent social issues are interrelated, and that climate action and sustainability initiatives need to be designed to ensure fair distribution of benefits and burdens, across all segments of a community and across generations. Projects will be assessed on their potential to result in improved socio-economic outcomes and a more equitable distribution of benefits and burdens among the community, for present and future generations. While projects can be eligible without incorporating these considerations, preference is given to projects that:
- Integrate principles of anti-racism, equity, inclusion and reconciliation.
- Apply inclusive community engagement practices.
- Implement social procurement.
- Generate significant socio-economic benefits, such as increased accessibility, improved outdoor spaces, and inclusive employment and apprenticeship.
As you develop your project approach, consider the following questions:
- How can you design an engagement approach that would enable you to consider the diverse needs, experiences, and voices of all stakeholders and rights holders in this project?
- Which equity-deserving groups might benefit the most, and/or be burdened, directly or indirectly, by this project? How are these groups positively or negatively impacted?
- Are there opportunities to address or mitigate negative impacts?
- Are there opportunities to rectify existing or potential biases, discrimination, or exclusionary practices in your project planning, design, funding, and implementation?
- How can you maximize the socio-economic benefits that your project generates?
- How can you leverage your procurement practices to generate more positive social, economic and environmental outcomes within your community and region?
- Multi-solving
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GMF seeks to fund the very best examples of municipal initiatives that achieve a multitude of benefits for the environment, communities and local economies. Higher application evaluation scores are given to projects that demonstrate excellence in one or more of the following areas:
- sustainable materials management
- biodiversity
- socio-economic benefits
- meaningful engagement and collaboration with rights holders and stakeholders.
Required documents
To apply for GMF funding, you must submit:
- a pre-application form
- an application form
- a project workbook
- all required supporting documents specified in the application guide
A GMF project officer will be your point of contact throughout the process and will review your file and provide feedback. You may be asked to revisit some steps to help you submit a complete and high-quality application.
Application process
Phase 1: Pre-application submission
You must submit a pre-application form through FCM’s funding portal. To do this, create a client profile and follow the steps in FCM’s funding portal to submit your pre-application form.
Phase 2: Eligibility determination
A GMF outreach officer or advisor will review your pre-application form. They will determine whether your organization and initiative are eligible to proceed to the next stage of the application process. You will receive a response within 15 business days of the date we receive your pre-application form.
Phase 3: Full application submission
If your organization and initiative are determined to be eligible to proceed to the next stage, your GMF outreach officer or advisor will inform you that the full application form is available through FCM’s funding portal. They will also provide you with an Excel project workbook template to complete and submit with the full application form.
It is important to note that even if a project is deemed eligible to move forward with a full application, it does not guarantee full application eligibility or that the project will be approved for funding.
As you complete the application form, contact your GMF outreach officer or advisor if you have any questions. Once you’ve filled out the application form and project workbook and attached the required supporting documents, submit it to GMF through the FCM funding portal.
Phase 4: GMF project officer review
Once the full application form is submitted a GMF project officer will be assigned to your file and will review your application for accuracy and completeness and will work with you to resolve any remaining questions.
Phase 5: Peer review and internal review
An external expert peer review panel evaluates all capital and study applications. There will also be an internal analysis to provide a funding recommendation to GMF’s managing director, the GMF Council and FCM’s Board of Directors.
Phase 6: FCM funding decision
For studies, funding decisions are determined by GMF’s managing director. The average time for a funding decision is three to five months after your full application form submission.
For capital projects, FCM’s Board of Directors approves the funding recommendation made by the GMF Council. The average time for a funding decision is four to six months after your full application form submission.
How to apply
- Download and review the application guide.
- Reach out to a GMF representative to discuss your project at gmfinfo@fcm.ca or 1-877-417-0550.
- Review the list of prerequisites and supporting documents in appendix D of the application guide.
- Review the eligible and ineligible costs:
- Ensure you have a detailed project budget in place and are securing other funding sources for your project.
- 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 7.
- Complete the pre-application form available on the platform.
Quebec municipalities
FCM has an agreement with Quebec's ministère des Affaires municipales et de l'Habitation (MAMH) that allows the ministry to review applications to GMF before they are submitted to FCM. Quebec municipalities applying for funding from GMF must follow the process below to submit their application to MAMH.
Once you have completed all the steps in the ‘How to apply’ section above, submit your application by following the steps below. Note that the content of the links is available in French only.
- Save your application form using the appropriate file name.
- Save the application form to your local device with the following filename: FMV_ "your municipality's name"_ "date" (YYMMDD). For example: FMV_TownofABC_180228.pdf
- Log in to the Portail gouvernemental des affaires municipales et régionales. using your username and password.
- To submit your form click on “File Transfer”.
- In the “Recipient” drop-down list, select the applicable program.
- Upload your files and select “Transfer” once your request is complete.
- Receive confirmation from MAMH.
- MAMH assesses the applications to ensure that the projects submitted do not conflict with Quebec's government policies and directives. Once the assessment has been completed, MAMH informs the applicant of their decision and sends compliant applications to GMF for review.
- MAMH requires up to 15 working days to review the application and forward it to GMF.
- Receive approval from GMF.
- GMF will inform the applicant once they receive the application from MAMH and review the submission. If the application is approved for funding, an agreement between FCM and the applicant is prepared.
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.
See all Community Energy Systems funding
Meet community energy needs, increase energy efficiency, and build grid resilience
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