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Green Municipal Fund

Energy Sector Funding

To best manage the funding available to support the strongest initiatives, we follow a competitive funding approval process for capital projects in the energy, transportation, waste and water sectors. Applicants under these sectors must undergo an Initial Review to assess eligibility before they may submit a complete application.

The Initial Review form and updated applicant resources are now available. Find out more about the new eligibility criteria and prerequisites to apply for funding under the new offer. For more information on applying, please contact us.

While we will continue to accept applications year-round, funding approval dates for capital project applications in the energy, transportation, waste and water sectors will be made twice a year, with the first review period in February 2016, followed by another in September 2016. 

Energy-efficient facilities

We fund both retrofits and new construction 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

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.


Municipal facilities

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

Community projects

Your project must show potential to achieve a minimum 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
  • digester gas utilization
  • process heat capture 


As of April 1, applications for transportation capital projects will be assessed in the energy category. Learn more about eligible transportation initiatives.

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.


See our FAQs, or contact us at 613-907-6208 or 1-877-997-9926.

Page Updated: 10/02/2017