Investment Window 1: Short-Term Bridge Loans for Geothermal, Solar & Resiliency Hub Projects
Investment Window 1 (IW1) provides short-term bridge loans for community solar, geothermal, and resiliency hub projects moving from pre-development into construction. Proceeds cover the upfront expenses project sponsors face such as interconnection deposits, engineering, permitting, equipment deposits, site preparation, and early construction mobilization at a stage when private lenders are typically reluctant to engage.IW1 helps project sponsors maintain momentum without waiting months to close permanent financing or tax equity deals.
For clarity, resiliency hubs are community-serving facilities such as nonprofits, public buildings, and houses of worship equipped with solar photovoltaic (PV) systems paired with battery energy storage systems (BESS). They serve critical and community uses by reducing reliance on utility-supplied power, lowering greenhouse gas emissions, and safeguarding vital services against outages. Resiliency hubs are expected to deliver everyday energy savings to the host facility while providing backup power during grid outages, allowing surrounding communities to access shelter, communications, refrigeration for medications, and other essential services during emergencies.
Community solar projects applying for bridge loans through IW1 may also be considered for financing through the Bridge Financing Facility (BFF) program, which is a separate program from the C3Fund managed by MCEC in collaboration with and funding from the Maryland Energy Administration (MEA). The MCEC Board of Directors approves applications for loans made from the BFF program. This enables applicants to be considered for both programs. Please indicate in your application if you do not wish to be considered for the BFF program. Learn more on the BFF webpage.
(Note: Geothermal and resiliency hub projects will be financed only through the C3 Fund only.)
How to Apply
All applicants, community solar, geothermal, and resiliency hub, apply through the C3 Fund IW1 application on this page. Note, there is no separate application for community solar projects on the BFF webpage.
Who Can Apply
IW1 is open to Maryland-based or Maryland-serving entities, including:
- Corporate entities
- Nonprofits
- Entities that own or control Maryland-sited solar PV
- Nonprofits, public institutions, and houses of worship hosting solar-plus-storage resiliency hubs
Applicants must be in good standing with the Maryland Department of Assessments and Taxation, the proposed project must benefit Maryland, and the applicant must be willing to agree to terms and conditions of the C3Fund or BFF.
What It Funds
Eligible uses of funding includes:
- Utility interconnection applications, studies, and deposits
- Engineering and system design
- Permitting and related fees
- Equipment deposits and procurement, including battery energy storage systems (BESS) for resiliency hubs
- Site preparation and EPC mobilization
- Initial construction and commissioning costs
IW1does not fund long-term operating expenses, work outside the scope of the approved C3 Fund Guidelines, or any project that installs new fossil fuel equipment or improves the efficiency of existing fossil fuel equipment.
Preferred Funding Terms
General Parameters*: To ensure fairness and consistency among applicants, the C3 Fund has established general parameters for loan size, tenor, and other key terms. These parameters are intended to guide applicants in understanding the typical structure of investments the Fund seeks to make.
- Loan size: up to $3,000,000
- Tenor: up to 12 months, with a possible six-month extension in certain cases
- Interest rate: fixed at approval, based on the SOFR rate at the time of loan approval plus a spread reflecting the project’s assessed risk and impact
- Repayment: interest-only payments during the term, with principal repaid at maturity
- Collateral: first-priority UCC lien on project assets, including equipment, contracts, and interconnection rights; additional guarantees or security instruments may be required based on credit quality
*Discretion: Requests for funding outside of these preferred parameters may still be considered at the sole discretion of the C3 Fund Investment Oversight Committee (IOC). Such applications may require additional review and may take longer to process. If you have any questions, feel free to contact us at [email protected].
Project Requirements
Each project must demonstrate technical and economic viability, secured site control, and a clear path to construction financing or other repayment sources. Preference is given to projects with indicative term sheets or commitments from take-out lenders.
Community Solar, Geothermal Projects, and Resiliency Hubs: The following credit standards apply:
- At least 10% of total project cost contributed by the developer as equity
- Loan-to-cost not exceeding 50% of the project budget
- No additional debt on the project except in coordination with permanent financing
- Personal or corporate guarantees from sponsors preferred
MCEC also evaluates borrowers against financial parameters including but not limited to current ratio, debt-to-equity, tangible net worth, and minimum unrestricted cash. These metrics are not the sole determinants of financing decisions, and exceptions may be approved where other credit strengths, risk-mitigating factors, or project impact warrant.
Community Impact
In order to adhere to the Maryland Climate Solutions Now Act to deploy at least 40% of fund capital to qualified projects in low- and moderate-income (LMI) communities defined as census tracts with average median income at or below 80% of the state average, applicants are encouraged to maximize benefits accruing to LMI communities as a result of C3 Funding. Applicants are requested to describe the LMI structure of the eventual project at application and are held to that structure through a recapture mechanism.
If applications from the IW1 are reviewed through the BFF program, the following additional conditions apply to the loan provided:
Workforce Requirement (Community Solar Projects funded through BFF Only)
Community solar projects financed through the BFF must comply with the Strategic Energy Investment Fund (SEIF) workforce requirement under Md. Code Ann., State Gov’t § 9-20B-05(m)(2). At least 80% of worksite workers must reside in Maryland or within 50 miles of Maryland’s borders, as determined by MEA for this statewide program. This requirement passes through to all subrecipients and subcontractors. Borrowers must certify compliance at closing and maintain compliance throughout the loan term, and MCEC will include the appropriate provisions and certifications in the loan documentation. This requirement does not apply to geothermal or resiliency hub projects.
LMI Benefit Requirement (Community Solar Projects funded through BFF Only)
Community solar projects financed through the BFF must deliver more than 50% of total project benefits to low- and moderate-income (LMI) households in Maryland. For the purposes of the BFF, LMI households are defined as those at or below 150% of the State’s Average Median Income (AMI). Applicants should be prepared to describe their LMI subscriber acquisition strategy and demonstrate how the project will meet and maintain this threshold over the life of the project. This requirement does not apply to geothermal or resiliency hub projects, which are financed directly through the C3 Fund.