Launched in 2020 as a six-year, $300 million initiative, GMF’s Community Efficiency Financing (CEF) program has supported more than 40 municipalities to launch and expand innovative home-energy upgrade financing programs.
By empowering homeowners to invest in energy-efficient upgrades, CEF has strengthened local economies, supported climate leadership and made homes healthier, more affordable and more resilient. Through CEF funding and learning resources, municipalities can:
- Design, launch and expand residential energy financing programs that empower homeowners to invest in energy-efficient upgrades
- Drive environmental leadership by helping residents reduce energy use, lower greenhouse gas emissions and strengthen climate resilience
- Support economic growth and affordability by cutting energy costs, creating local jobs and improving housing affordability for Canadians
- Enhance community well-being by making homes healthier, more comfortable and more resilient to climate impacts
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. gmfinfo@fcm.ca
About CEF funding
FCM offers support throughout the delivery of a home-energy upgrade financing program through the following funding options:
- Studies: Explore your options, build on market research or assess program performance with feasibility, design and program evaluation studies
- Pilot projects: Test a smaller-scale version of your program in real-world settings; reserved for exceptional proposals that demonstrate clear market transformation potential and are otherwise ineligible for capital project funding
- Capital projects: Access a grant combined with a low-interest loan or credit enhancement to implement a new program or scale up an existing model
Read our application guide for details.
Assess the potential for the types of home energy upgrade programs in your collectivity that would be eligible under FCM’s CEF initiative. Read the CEF market guide.
CEF intake criteria
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
FCM’s Community Efficiency Financing initiative is delivered through our Green Municipal Fund and funded by the Government of Canada.
Case studies
Read about initiatives your peers have run using GMF funding. Their stories are inspiring.
Case Study: An innovative path toward net-zero homes
How Better Homes Ottawa leveraged a private-sector partnership to finance home energy-efficiency retrofits.
Read moreCase Study: Making Alberta homes more energy efficient
How Alberta municipalities teamed up to access Community Efficiency Financing and retrofit homes across multiple communities.
Read moreResidential energy programs overcome barriers to financing retrofits in Toronto
FCM Sustainable Communities Award winner – Energy Program
Read moreCase Study: Helping Maritime homeowners boost energy efficiency
An innovative financing tool makes sustainable retrofits on single-family homes accessible to all
Read moreHave questions about Community Efficiency Financing?
Contact our Outreach team who can answer any questions you have relating to this funding opportunity.
Take me to CEF funding offer
Get funding to deliver home-energy upgrade financing programs for residential energy projects.
Delivered by the Federation of Canadian Municipalities, GMF manages approximately $2.4B in programs funded by the Government of Canada.