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Posted: Wednesday, August 23, 2017

Energy Efficiency and Recovery Funding

Federation of Canadian Municipalities

The Federation of Canadian Municipaliities provides funding for feasibility studies, pilot projects and capital projects related to initiatives that reduce energy consumption and greenhouse gas emissions. 

Types of eligible initiatives
The following types of energy feasibility studies, pilot projects and capital projects are eligible for funding under GMF. 

Energy-efficient facilities
We fund both new construction and retrofit projects aimed at energy efficiency. While we encourage municipalities to pursue building certifications, such as LEED®, it is not a prerequisite for funding.

New construction: Feasibility studies, pilot projects and capital projects 
Generally, only projects involving municipally owned buildings will qualify for funding. However, a non-municipally owned building that meets the eligibility criteria for energy capital projects may be eligible for funding if the primary use of the building is for municipal purposes. 

Your project's design must aim for net zero energy performance; it must demonstrate the potential for systems to produce as much energy as they require for operation, over a defined operational period. In building projects that target net zero energy performance, designers must first ensure they follow best practices in operational efficiency and address any remaining energy demand with renewable power sources. 

Example: new energy-efficient municipal building equipped with on-site renewable energy production (process loads may be excluded), such as a solar photovoltaic system, a solar thermal system for space and water heating; and a wind or biogas system.

Retrofits of municipal facilities: Feasibility studies, pilot projects and capital projects
Your project must demonstrate the potential to reduce energy consumption by at least 30 per cent compared to current performance. A minimum of 20 per cent of these energy savings must come from energy efficiency measures, and a maximum of 10 per cent may come from on-site renewable energy production (e.g. wind and solar energy production; geoexchange is not considered renewable). Retrofits must meet or exceed building codes (NECB 2011 or relevant provincial codes).

Example: municipal facility retrofits (e.g. updating HVAC systems, upgrading insulation) with or without the opportunity to generate renewable energy

Retrofits of community projects: Feasibility studies, pilot projects and capital projects
Your project must show potential to achieve a minimum of a 10 per cent reduction in residential energy use compared to the current baseline. It must also engage a significant proportion of the community and show that residents will seek maximum energy reductions at a reasonable cost.  In larger municipalities, project participants should include more than 100 households or a group of commercial or institutional buildings.

Example: energy-efficient installations such as solar thermal water heaters for homes, or commercial or institutional buildings

Energy recovery or district energy
Your project must incorporate thermal energy from residual or renewable sources, and reduce energy consumption by at least 40 per cent for one or more existing facilities, compared to baseline data, within three years of implementation.

  • district energy systems
  • utilization of residual biomass
  • process heat capture 

For information on transportation capital projects related to energy, see Transportation and fuel efficiency funding.

Excluded projects
Stand-alone renewable energy production projects are not eligible for funding, unless they are implemented on brownfield sites, with or without remediation, and are approved by the provincial or territorial regulator. If this is the case, your initiative is considered a brownfields capital project.

Who can apply

  • All Canadian municipal governments.
  • Municipally owned corporations working in partnership with a municipal government.
Learn more about eligibility.

Funding available

Feasibility studies
  • Grants: Up to 50 per cent of eligible costs to a maximum of $175,000.
Pilot projects
  • Grants: Up to 50 per cent of eligible costs to a maximum of $350,000.
Capital projects
  • FCM offers low-interest loans, with competitive lending rates, usually in combination with grants.
  • Funding is provided for up to 80 per cent of eligible project costs.
  • The loan maximum is $5 million, and the grant amount is 15 per cent of the loan.
Applicants with high-ranking projects may be eligible for a loan of up to $10 million, combined with a grant for 15 per cent of the loan amount, to a maximum of $1.5 million.

Learn more about financing for capital projects.

Application deadlines

Feasibility studies and pilot projects
Applications are accepted all year round.
Capital projects
Capital projects for energy initiatives are subject to deadlines. Learn more.  
You will need to meet key prerequisites before you apply.

How to apply

See the Application Resources page to find the application forms and other resources you need to apply. 

Learn more about GMF's application and approval processes.


See our FAQs, or contact an FCM advisor at 613-907-6208 or 1-877-997-9926.
Contact Name: FCM Advisor
Contact Phone: 1-877-997-9926
Contact Email:
Subject Area(s): Local Government Facilities, Energy
Last Reviewed: May 25, 2020, 3:51 pm
Deadline: No Official Deadline
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