Ember rails Assertion Failed: template must be a function

I'm trying to set up a rails project with ember and i followed the steps on the ember-rails github page.

Gemfile:

gem 'ember-rails'
gem 'ember-source', '~> 1.9.0'

I have now created a basic structure with a router and some hbs templates. When I check Ember.TEMPLATES the templates are there but when ember wants to render them I get this error:

Uncaught Error: Assertion Failed: template must be a function. 
Did you mean to call Ember.Handlebars.compile("...") or specify templateName instead?

I've looked around and tried multiple possible solutions to no avail. Does anyone who knows how to get the templates to compile properly with ember-rails?