Energy Innovation Program Off-Site Construction Challenge: How to Apply

Canada faces a growing need for faster, more affordable housing. The Energy Innovation Program Off-Site Construction Challenge helps address this by funding new ways to design and build energy‑efficient homes using off‑site and modular construction. If your team is working on innovative housing, this program can support both early design and large construction costs.

What Is the Energy Innovation Program Off-Site Construction Challenge?

The Energy Innovation Program (EIP): Off‑Site Construction Challenge is a federal funding program run by Natural Resources Canada (NRCan). Its main goal is to speed up housing supply and improve energy performance and affordability. It does this by supporting off‑site construction methods, like modular or panelized building.

The program has two phases:

Phase 1: Design and Development
- Up to $180,000 per project
- Supports design, planning, and technical work
Phase 2: Demonstration and Build
- Up to $10 million per project
- Only open to Phase 1 finalists

You can combine this grant with other government funding, up to 100% of eligible project costs. This is rare for federal programs.

Who Is Eligible to Apply?

To apply, you must be a Canadian legal entity and meet both organization and project requirements.

Eligible organizations include:

For‑profit businesses
Not‑for‑profit organizations
Community groups
Provincial, territorial, regional, or municipal governments
Indigenous communities, governments, and organizations
- These must be majority owned and controlled by Indigenous peoples

Additional requirements:

You must be a housing provider, developer, or builder
You must own the building being constructed, or have clear ownership arrangements
You must submit and complete a Phase 1 application before you can be considered for Phase 2 funding

GrantHub’s eligibility matcher can help you quickly see if your organization and project fit these rules.

What Projects Does the Program Fund?

The program supports housing projects that use off‑site construction and deliver strong energy performance.

Eligible project activities include:

Architectural and engineering design
Research and development
Prototyping and testing
Energy modelling and analysis
Developing off‑site construction systems
Building housing units in Phase 2

Projects must show how they:

Increase housing supply
Improve energy efficiency or reduce emissions
Shorten construction time or lower costs using off‑site methods

How the Application Process Works

Step 1: Prepare Your Phase 1 Application

Start by applying for Phase 1 design funding. Your application should include:

A clear project description and details about your innovation
Your off‑site construction method
Energy performance goals
A budget and timeline
Proof that your organization is eligible

NRCan looks for projects that are innovative, realistic, and have strong energy and housing results.

Step 2: Complete Phase 1 and Become a Finalist

Only some Phase 1 projects are chosen to move forward. If selected:

You finish your design and development work
NRCan reviews your final Phase 1 results

Step 3: Apply for Phase 2 Construction Funding

If you are a Phase 1 finalist, you may be invited to apply for Phase 2 funding. This phase can provide up to $10 million to help build your project.

Common Mistakes to Avoid

Missing ownership details
You must clearly show who owns the building. If this is missing or unclear, your application could be rejected.
Weak energy performance explanation
Off‑site construction alone is not enough. Explain how your project will improve energy efficiency or reduce emissions.
Unrealistic budgets or timelines
Costs and schedules must make sense. If you over‑ or under‑estimate, your score may drop.
Thinking Phase 2 is guaranteed
Only strong Phase 1 projects are invited to Phase 2. Funding is not automatic.

Frequently Asked Questions

Q: How much funding is available?
Phase 1 provides up to $180,000 for design and development. Phase 2 offers up to $10 million for construction, but only for Phase 1 finalists.

Q: Can I use this grant with other government funding?
Yes. You can combine funding up to 100% of total eligible project costs.

Q: Are Indigenous‑led projects eligible?
Yes. Indigenous‑owned and controlled organizations can apply, including both for‑profit and not‑for‑profit groups.

Q: Do I have to finish Phase 1 before applying for Phase 2?
Yes. Only projects that complete Phase 1 and are chosen as finalists can apply for Phase 2.

Q: What types of housing are eligible?
The program funds housing projects using off‑site construction that show energy improvements. The housing type must fit program goals.

Next Steps

The Energy Innovation Program Off‑Site Construction Challenge is a great choice if your housing project uses off‑site construction and aims for measurable energy gains. GrantHub tracks hundreds of grant programs across Canada, including housing and energy innovation funding. To build a stronger funding plan, try GrantHub to see which programs fit your organization before deadlines arrive.

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Energy Innovation Program Off-Site Construction Challenge: How to Apply