How to Fund Renewable Energy Projects in Indigenous and Remote Communities

Diesel power remains the main energy source for many Indigenous and remote communities in Canada. It is expensive, unreliable, and produces high carbon emissions. Federal clean energy funding now focuses on replacing diesel with local renewable energy. Programs like the Clean Energy for Rural and Remote Communities (CERCC) are designed to support this transition.

This guide explains how to fund renewable energy projects in Indigenous and remote communities, what CERCC actually supports, other funding options available, and how to prepare a strong, fundable project.

Core Funding Option: Clean Energy for Rural and Remote Communities (CERCC)

The Clean Energy for Rural and Remote Communities program is a federal funding initiative delivered by Natural Resources Canada (NRCan). Its goal is to reduce reliance on diesel for heat and electricity while building long-term local energy capacity.

Who Can Apply

CERCC is open to a wide range of applicants:

First Nation, Inuit, and Métis communities
Indigenous governments, tribal councils, and development corporations
Other Indigenous organizations
Legally incorporated Canadian for-profit businesses
Canadian not-for-profit organizations
Provincial, territorial, regional, and municipal governments

This flexibility allows projects to be structured through community-owned corporations or partnerships with experienced clean energy developers.

What Types of Projects Are Funded

CERCC supports both infrastructure and early-stage development, which is important for remote projects. Eligible activities include:

Renewable electricity and heat

Solar PV and solar thermal
Wind power
Small hydropower
Geothermal
Biomass heating, district energy, and combined heat and power
Energy storage systems

Energy efficiency

Building retrofits
Community-scale efficiency upgrades

Project development and capacity building

Feasibility studies and engineering
Community energy planning
Energy literacy and training
Energy coordinator roles
Workshops and engagement

You can apply for funding before construction, not just once the project is ready to begin construction.

How the Funding Works

CERCC provides repayable funding, not traditional non-repayable grants. Repayment terms depend on the project and are usually linked to how well the project performs or earns money.

While repayable, this type of funding often has:

Lower interest than commercial loans
Flexible repayment schedules
Alignment with the long asset lifespans typical in remote energy systems

For many community-owned projects, CERCC funding acts as cornerstone financing that can help attract other public or private capital.

Note: The tax treatment of repayable funding depends on your project’s structure. Repayable funding is generally not treated as taxable income, but tax outcomes can vary. Consult a tax professional to understand your specific situation.

Other Funding Sources

While CERCC is a major option, many projects combine several funding sources to cover costs and reduce risk. Other key sources include:

Indigenous Clean Energy Initiatives

Indigenous Clean Energy Social Enterprise (ICE): Offers capacity-building, mentorship, and networking for Indigenous-led energy projects.
First Nations Infrastructure Fund: Supports energy systems, especially those that improve community infrastructure.

Provincial and Territorial Incentives

Each province and territory has its own programs for renewable energy and energy efficiency. Examples include BC’s Remote Community Electrification Program and Ontario’s Indigenous Community Energy Fund.

Private and Nonprofit Funding

Some banks, credit unions, and foundations offer loans or grants for renewable energy, especially for Indigenous or rural projects.

GrantHub’s database lets you search by province, technology, and applicant type to find all current programs that fit your project.

How to Structure a Fundable Project

Successful renewable energy projects in Indigenous and remote communities usually share a few key traits.

1. Community Leadership Is Clear

Funders look for:

Formal community support (such as a Band Council Resolution)
Indigenous ownership or long-term control
Local benefits like jobs, training, or stable energy costs

Projects led or co-owned by the community are stronger fits for CERCC and other programs.

2. Diesel Reduction Is Measurable

A strong proposal clearly explains:

How much diesel will be replaced
Whether the project supplies electricity, heating, or both
How the system performs all year

Quantifying diesel reduction is central to how CERCC evaluates impact.

3. Early-Stage Work Is Properly Scoped

Many applications fail because the early planning work is vague. CERCC supports:

Technical studies
Load analysis
Grid integration planning
Biomass supply chain assessments

Submitting realistic timelines and costs matters more than having perfect data on day one.

Common Mistakes to Avoid

Assuming CERCC is a grant
CERCC provides repayable funding. Treat it as project financing, not free capital.
Waiting until construction is ready
CERCC supports feasibility, planning, and capacity building. Applying earlier can improve your chances.
Weak community governance details
Applications without clear ownership, decision-making, or benefit sharing often stall in review.
Underestimating logistics in remote locations
Transport, seasonal access, and local workforce constraints should be addressed from the start.

Frequently Asked Questions

Q: Can businesses apply for Clean Energy for Rural and Remote Communities funding?
Yes. Legally incorporated Canadian for-profit businesses are eligible, especially when working with or owned by Indigenous communities.

Q: Is CERCC funding taxable?
Repayable funding is generally not treated as taxable income, but tax treatment depends on the project’s structure. Consult a tax professional to be sure.

Q: Does CERCC fund feasibility studies only?
No. The program funds feasibility studies, community energy planning, and full clean energy installations.

Q: What energy technologies qualify under CERCC?
Eligible technologies include solar, wind, hydropower, geothermal, biomass heating, energy storage, and energy efficiency measures.

Q: Does the program only support electricity projects?
No. CERCC supports both electricity and heat projects, including district energy and biomass heating systems.

If you want to see which funding programs match your project, GrantHub tracks hundreds of active grants and repayable programs across Canada.

Energy Efficiency and Clean Tech Rebates for Canadian Businesses
Community Renewable Energy and Transportation Project Eligibility in Northern and Atlantic Canada
How to Plan Energy, Resource, and Environmental Projects for Canadian Government Funding

Next Steps

Funding renewable energy projects in Indigenous and remote communities starts with understanding which programs fit your project stage, ownership model, and location. CERCC is a strong foundation, but it often works best alongside provincial incentives and Indigenous-focused financing.

GrantHub can help you compare your options, so you can focus on building a clean energy project that works for your community over the long term.

How to Fund Renewable Energy Projects in Indigenous and Remote Communities