General

What is the C3 Fund?
The C3 Fund (Climate Catalytic Capital Fund) is a dedicated investment fund administered by the Maryland Clean Energy Center (MCEC). It was established to leverage increased private capital investment in clean energy technology development and deployment, reduce greenhouse gas emissions, and advance energy equity across Maryland.  

What types of projects is the C3 Fund designed to support?
The C3 Fund supports projects and programs that measurably enable or achieve improvements in: climate mitigation including significant estimated GHG reduction or demonstrated net zero impact; renewable energy generation, transmission, distribution, and storage; building electrification, weatherization, and energy resilience; clean transportation adoption including fleet conversion and alternative fuels; biomass energy and waste-to-value applications that reduce GHG emissions; carbon capture technologies and solutions; energy equity outcomes for low-income households and communities; and commercialization and deployment of new advanced clean energy technologies. During the May – June 2026 Application Period, the C3 Fund is accepting applications for three investment windows: Investment Window 1 ‘IW1’ (Bridge Loans for Community Solar and Geothermal Project Developers), Investment Window 2 ‘IW2’ (Lines of Credit for Energy Developers and Installers), and Investment Window 3 ‘IW3’ (Community Impact Grants for local governments, nonprofits, and community organizations). 

Who is eligible to apply?
Individuals, businesses, and organizations are eligible to apply, provided they are in good standing with the Maryland Department of Assessments & Taxation and hold an active Federal Tax ID or Social Security Number. All applicants must complete and submit an IRS W-9 form. 

Are out-of-state organizations eligible if the project is in Maryland?
Yes. Applicants may be based outside Maryland, provided the proposed project or program demonstrates a primary benefit or return on investment that positively impacts the environment and energy economics for Maryland citizens, businesses, nonprofits, municipalities, and/or institutions. Entities that were formed outside of Maryland must also be registered as a foreign entity in Maryland. 

What percentage of C3 Fund awards must go to low-income communities?
In each fiscal year, at least 40% of the C3 Fund balance must be used for Qualified Programs and Projects in communities with low-to-moderate-income (LMI) households.  

How is “low-to-moderate income” defined for the C3 Fund?
A low-to-moderate-income household is defined as a household located in a census tract with an average median income at or below 80% of the average median income for the State of Maryland. 

What financing products does the C3 Fund offer?
During the May 2026 application period, the C3 Fund is deploying capital through three specific investment windows: bridge loans, lines of credit, and project feasibility grants. 

Can the C3 Fund be used for fossil fuel projects?
No. The C3 Fund may not be used for any project that installs new equipment using fossil fuels or that improves the efficiency of existing equipment using fossil fuels. 

Who makes funding decisions?
All funding decisions are made by the C3 Fund Investment Oversight Committee (IOC), an independent committee appointed by the MCEC Board of Directors. The Committee consists of members with backgrounds in clean energy finance, technology, climate policy, and law. A majority vote of a quorum is required to approve any investment. 

Applying 

How do I apply?
Applications are submitted through an application specific to each investment window. For the May 2026 application period, there is a separate application form for IW1 (Bridge Loans), IW2 (Lines of Credit), and IW3 (Project Feasibility Grants). Links to each form are available on the MCEC website. Submitting a application does not guarantee funding; MCEC will confirm eligibility and may request additional materials. Applications which meet general eligibility criteria are presented to the IOC, which may request further information or make a decision.  

When I submit my application, how does the timing affect which IOC approval cycle my project will be considered in?
The date you submit your intake form determines which Investment Oversight Committee (IOC) meeting will review your project, along with the timing of all the steps that follow. 

There are two application windows: 

• Submit by 5/29/26 to be considered for IOC approval on 6/25/26. 

• Submit by 6/30/26 to be considered for IOC approval on 8/20/26. 

Applications received after 5/29/26 will roll into the August 20 cycle. Downstream steps such as due diligence, underwriting, legal and closing, and disbursement shift accordingly based on your application window. 

We recommend submitting well before the window closes to allow time for screening and any follow-up questions. 

Can I apply to more than one investment window?
Yes, provided your project or organization meets the eligibility parameters for each window you apply to. Each investment window requires a separate application. 

Is the application deadline flexible?
No. The application deadline is firm. All materials, including supporting documents uploaded to OneHub, must be submitted by the published deadline.  

What happens after I submit the preliminary application?
After submission, MCEC will review your application for completeness and eligibility. You will receive a confirmation and, if eligible, an invitation to upload supporting materials through MCEC’s secure data room, OneHub. MCEC may request additional information during the review process. Applications that pass initial review are presented to the C3 Fund Investment Oversight Committee (IOC) for evaluation and award decision. 

Where do applicants upload attachments?
Supporting documents are uploaded through OneHub, MCEC’s secure document management platform. After you submit the application form, MCEC will send an invitation email with instructions for accessing OneHub. You should identify the person who should receive that invitation in the application form. 

What documents will I need to submit?
Required supporting documents vary by investment window and project stage. MCEC will confirm specific document requirements after reviewing the preliminary application. 

What should be included in a project pro forma?
The project pro forma is a project-level financial summary presenting expected cash flows, revenues, operating expenses, and financing assumptions over the relevant period. It should reflect the economics of the specific project, not the applicant’s overall organization, and should be prepared assuming acceptance and receipt of C3 Fund financing. Ideally, the pro forma will reflect the requested funding from C3 to demonstrate how the funds will contribute to the economics of the project. 

What should be included in a capital stack summary and sources and uses?
Applicants must provide a complete sources and uses of funds and capital stack summary for the proposed project. This should clearly identify all anticipated sources of capital, including equity, debt, grants, and other incentives, and all planned uses of funds. The capital stack should be presented assuming acceptance and receipt of C3 Fund financing, with C3 Fund capital clearly identified as a source. 

Who can I contact with questions before applying?
For questions about the C3 Fund, Bridge Finance Facility and solar-related programs, contact: [email protected]  

How is applicant data handled and kept confidential?
MCEC treats all collected data confidentially. Section 4-335 of the Public Information Act requires that MCEC deny inspection of any part of the public record containing trade secrets, confidential commercial information, or confidential financial information. MCEC shall keep all records of commercial activity it acquires in strict confidence to the extent permitted by the Open Meeting Act and Public Information Act. Applicants are responsible for clearly marking any materials they consider to be confidential, proprietary, or commercially sensitive at the time of submission.  

Should applicants submit personal identifying information through the application form or OneHub?
Applicants should not submit personal identifying information (PII) through the intake form or via OneHub, including but not limited to Social Security numbers, taxpayer identification numbers, dates of birth, or other sensitive personal data. If such information is submitted inadvertently, MCEC may restrict access to or remove the information to reduce privacy and security risks. 

Investment Window 1: Short-term Bridge Loans for Geothermal, Solar and Resiliency Hub Projects 

What is the IW1 Bridge Loan designed to fund?
The IW1 Bridge Loan provides pre-construction financing to help geothermal, solar developers and resiliency hubs cover early-stage project costs including interconnection applications, studies, and deposits; engineering and design; permitting; equipment deposits and EPC mobilization; and for geothermal projects, drilling and well installation. Bridge loans are intended to be primarily repaid through takeout financing such as tax equity, construction loans, or long-term project debt. 

Who can apply for an IW1 Bridge Loan?
Private or nonprofit entities developing eligible Maryland-sited community solar or geothermal projects may apply, including developers, project special purpose entities, affordable housing owners or affiliates, community-serving organizations hosting resiliency hubs, and mission-driven organizations. 

What project types are eligible under IW1?
Community solar, geothermal and resiliency hub projects are eligible under IW1. 

What is the definition of resiliency hubs?
The 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. 

What stage should a project be at to be a good fit for IW1 financing?
Projects that are a good fit typically would have secured site control and developed an initial development plan but may still be advancing interconnection, permitting, final design, or other activities necessary to receive construction financing.  

Does the bridge loan cover construction costs?
Early construction and equipment procurement costs may be eligible, typically once construction financing is identified or clearly anticipated. Milestone payments from the applicant to a contractor or service provider can be eligible as initial costs, provided they are tied to specific eligible activities such as site preparation, equipment installation, or commissioning, and the applicant provides brief details on those milestone activities for eligibility confirmation. However, the IW1 Bridge Loan does not cover long-term construction financing or permanent project debt. 

Can bridge loan funds be used to reimburse costs already incurred before closing?
Generally, C3 Fund bridge loan proceeds should be applied to eligible costs incurred after closing. Exceptions may be considered on a case-by-case basis.  

What is the typical loan size and term for IW1?
Loan sizes and terms vary by project based on development needs, risk profile, and the proposed repayment strategy. To ensure availability of funds for a wide range of applicants current loans under IW1 will mostly likely not exceed $3M per developer. IW1 loans are generally intended to be short-term bridge financing, with a term up to 12 months. A 6-month extension may be available in some cases.  

How and when are funds disbursed?
Funds are disbursed through a single draw based on approved uses of funds, documentation, and project milestones. The goal for the current round is to have funds disbursed by 2 months after Investment Oversight Committee (IOC) approval, however this is subject to completion of all due diligence requirements. 

Are solar plus battery storage projects eligible, and is battery storage required?
For community solar, battery storage can be included but is not required. For viability of a resiliency hubs solar it is estimated that battery storage is included in the project. 

What level of site control is required?
Applicants should be able to demonstrate site control or a credible path to site control, such as a lease, option, or letter of intent. 

Can projects apply if they have not yet submitted an interconnection application?
Yes, but the expectation is that interconnection will be forthcoming shortly after the application. 

What does “credible path to takeout financing” mean?
A realistic plan for repaying the bridge loan, such as grants, construction financing, permanent debt, tax equity, sponsor equity, or other forms of capital. Letters of Intent or Term sheets from capital providers can serve as preferred proof of credible path. 

What are the typical interest rates and fees for IW1 – Bridge Loans?
The C3 Fund is committed to providing below-market financing to close critical financing gaps. In the current round, the maximum initial rate is anticipated to be 7%, which applicants may use for their financial analysis. The final rate for successful applicants will be determined by the project’s assessed risk and impact. A step-up in rate may be considered if a borrower requests an extension beyond the initial loan term. There are no additional fees such as origination or legal fees.  

Are IW1 Bridge Loans required to be repaid before construction financing is secured?
IW1 loans may be repaid by proceeds from construction financing or another source of capital. However, MCEC will typically not release collateral or other security until the loan is paid in full.   

What are the collateral and guarantee requirements?
Collateral and guarantee requirements depend on the credit profile of each applicant. In certain cases, MCEC may request a sponsor guaranty and/or a UCC lien on business assets as part of the loan security. In addition, specific covenant requirements will be determined during the due diligence and underwriting process. 

Can an organization apply for multiple projects?
Yes. There is no limit on the number of individual projects a single developer or sponsor may apply for. Organizations with multiple projects should complete one application per project. 

If we have multiple projects each held in separate SPEs, should we apply as the developer or as each SPE?
The applicant should be whichever entity will eventually assume the loan and become the borrowing entity if the project is selected. Applicants may note any relevant ownership structure in the application. 

If multiple projects are accepted and consolidated into a single loan, can funding be moved between projects flexibly?
Project applications should reflect the financing needs of individual projects. While MCEC will consider financing multiple projects via a single loan as a portfolio, actual project costs are expected to align with submitted information. Funding is generally not interchangeable between projects within a portfolio loan. 

If applying via a project SPE that does not have its own audited financials or tax returns, what should be uploaded?
If the application is made via a project SPE, the entity with a controlling ownership interest in the SPE should provide its audited financials and tax returns where available. 

For solar projects with multiple points of interconnection, should each interconnection point be a separate application?
No. Applicants should submit a single application for the project even if it includes multiple points of interconnection. 

Investment Window 2: Lines of Credit for Solar Developers and Installers 

What is the IW2 Line of Credit designed to fund?
The Line of Credit for Solar Developers and Installers is a revolving line of credit that provides flexible working capital to enable solar and installers to advance projects through key development milestones. It is designed to cover upfront costs that traditional lenders typically do not finance until later construction stages, including interconnection deposits, engineering, permitting, equipment procurement, site preparation, and early construction costs. 

Who can apply for an IW2 Line of Credit?
Any Maryland-based or Maryland-serving entity that owns or controls Maryland-sited solar PV assets may apply, including corporate entities, special purpose entities, and nonprofits. Applicants must be in good standing with the Maryland Department of Assessments & Taxation. 

What types of entities are eligible for IW2?
IW2 is open to community solar developers, commercial solar developers, residential solar installers and EPC contractors. Each applicant type has a dedicated section of the application reflecting their specific pipeline and business profile. 

How does a revolving line of credit work in the context of IW2 Lines of Credit?
Developers draw funds as needed during early project stages and repay the line once permanent financing or construction capital is secured. Those repaid funds are then redeployed to support additional clean energy projects, allowing the same pool of capital to accelerate development across multiple projects over time. 

Can the IW2 Lines of Credit be used for long-term operating expenses?
Since these lines are provided for specific project outcomes the  loan proceeds should not be used for long-term operating expenses or purposes outside the scope of the approved C3 Fund Guidelines. 

What is the IW2 Lines of Credit designed to fund?
IW2 is designed to fund pre-construction expenses for solar developers with a portfolio of solar projects in Maryland. It is also designed to provide funding for solar installers to provide flexible working capital  

Who can apply for an IW2 Lines of Credit?
IW2 Bridge Loan is open to solar developers and installers with an active presence in Maryland.  

What project types are eligible under IW2?
Solar PV projects 

What stage should a project be at to be a good fit for IW2 financing?
Projects that are a good fit typically should have secured site control and developed an initial development plan but may still be advancing interconnection, permitting, final design, or other activities necessary to receive construction financing. For solar installers, projects will be in various stages, but should be able to demonstrate receivables to cover working capital. 

Does the line of credit cover construction costs?
Early construction and equipment procurement costs may be eligible, typically once construction financing is identified or clearly anticipated. Milestone payments from the applicant to a contractor or service provider can be eligible as initial costs, provided they are tied to specific eligible activities such as site preparation, equipment installation, or commissioning, and the applicant provides brief details on those milestone activities for eligibility confirmation. Generally, the IW1 Lines of Credit are not designed to cover long-term construction financing or permanent project debt. 

Can line of credit funds be used to reimburse costs already incurred before closing?
Reimbursement may be considered on a case-by-case basis but are generally not be permitted prior to the date in which the loan was approved by the C3 Investment Oversight Committee. 

What is the typical line of credit size and term for IW2?
Loan sizes and terms vary by project based on development needs, risk profile, and the proposed repayment strategy. The preferred maximum loan amount is $1.5M per developer, with a term of up to 24 months. 

How and when are funds disbursed?
Draws from the Lines of Credit are typically limited to once a month and will be subject to submission of supporting documentation for the requested funds. The goal for the current round is to have initial funds disbursed by 2 months following Investment Oversight Committee (IOC) approval. 

Are solar plus battery storage projects eligible, and is battery storage required?
Yes, battery storage projects are eligible. However, is not a requirement.  

What level of site control is required?
Applicants should demonstrate site control or a credible path to site control, such as a lease, option, or letter of intent. 

What does “credible path to takeout financing” mean?
IW2 is not designed to finance an entire solar project and is meant to provide capital in the early stages of a project, where most traditional banks won’t. Applicants should demonstrate a reliable source of repayment, which typically will be provided by another lender/ funding source. 

What are the typical interest rates and fees for IW2 – Line of Credit?
The aim is to provide below-market financing to close critical financing gaps. In the current round, the maximum initial rate is anticipated to be 7% which applicants may use for their financial analysis. The final rate for successful applicants will be determined by the project’s assessed risk and impact. A step-up in rate may be considered if a borrower requests an extension beyond the initial loan term. Fees may be considered for the ongoing servicing of the Lines of Credit, subject to the approval of the Investment Oversight Committee. 

Are IW2 Line of Credit required to be repaid before construction financing is secured?
IW2 Lines of Credit may be repaid by proceeds from construction financing or another source of capital. However, MCEC will typically not release collateral or other security until the loan is paid in full.   

What are the collateral and guarantee requirements?
Collateral and guarantee requirements depend on the credit profile of each applicant. In certain cases, MCEC may request a sponsor guaranty and/or a UCC lien on business assets as part of the loan security. In addition, specific covenant requirements will be determined during the due diligence and underwriting process. 

If applying via a project SPE that does not have its own audited financials or tax returns, what should be uploaded?
If the application is made via a project SPE, the entity with a controlling ownership interest in the SPE should anticipate providing its audited financials and tax returns where available. 

Investment Window 3: Project Feasibility Grants for Underserved Market Actors 

What is the IW3 Project Feasibility Grant (PFG) designed to fund?  
The Project Feasibility Grant funds early-stage work that turns a clean energy concept into a financeable project. 

Who is eligible to apply for a PFG?
The PFG is open to any Maryland-based or Maryland-serving entity, including: 

• Non-profit organizations 

• Community-based and faith-based organizations 

• Municipalities and county governments 

• Public housing authorities 

• Local Education Agencies and school districts 

• Public institutions and quasi-public entities 

Grantees will be asked to report on study outcomes, findings, and project disposition (whether the project advanced to financing, was deferred, or was terminated) at study completion and at the recapture-evaluation date. All reporting requirements are embedded in the grant agreement 

What project types are eligible under IW3?
Solar PV, Geothermal, Resiliency Hubs, and other clean energy projects that align with the mandate of the Climate Solutions Now Act. Funds may not be used for fossil fuel equipment or make equipment that uses fossil fuel more efficient.  

What stage should a project be at to be a good fit for IW3 financing?
IW3 funds work that comes before a project is shovel-ready, but applicants will be asked to demonstrate a credible path to getting there within a defined window after grant completion. Strong applications show: 

• A clear implementation plan with identified next steps 

• Demonstrated financial capacity to service debt or fund the project if feasibility is confirmed 

• Site control or a credible path to site control 

• Capable project leadership and technical capacity. 

Does the project feasibility grant cover construction costs?
Generally, the project feasibility grant is not designed to fund construction, equipment, or installation costs. 

Can grant funds be used to reimburse costs already incurred before closing? Generally, IW3 grant funds are not designed to be used to reimburse costs. Exceptions may be provided on a case-by-case basis. 

How and when are funds disbursed?
The goal for the current round is to have funds disbursed by 2 months following Investment Oversight Committee (IOC) approval. Depending on the scope of the project, funds may be disbursed in multiple advances.  

Can an organization apply for multiple projects?
Yes, an applicant may apply for multiple projects.  

Evaluation & Awards 

How are applications evaluated?
The C3 Fund Investment Oversight Committee (IOC) evaluates applications based on the eligibility and qualifications of the applicant; financial feasibility of the project or program; level and type of GHG reductions and climate vulnerability reductions; environmental, energy, and resource sustainability; cost-effectiveness; technological characteristics including scale-up potential; jobs and workforce impacts; and contributions toward the statutory purposes of the C3 Fund. Shovel-ready projects and ready-to-implement proposals are ranked higher. 

What makes a strong application?
Strong applications demonstrate a clear LMI nexus, quantified GHG reductions, a realistic capital stack with identified takeout or repayment sources (where applicable), evidence of project or organizational readiness, and a well-defined trigger or deliverable. Applications that catalyze private capital and generate a measurable return to the C3 Fund are ranked more favorably. 

What are the minimum and maximum award amounts?
Award amounts vary by investment window and product and are subject to changes made by the IOC.  For IW1 Bridge Loans, the maximum loan amount is anticipated to be $3,000,000 per applicant. For IW2 Lines of Credit, the maximum line amount is anticipated to be up to $1,500,000 per developer. For IW3 grants, the targeted range is $100,000 – $300,000, with amounts outside of that range to be considered on a case-by-case basis for projects with exceptional scope or impact. 

Is submitting an application a guarantee of funding? 
No. Submitting an application does not guarantee funding. MCEC will confirm eligibility and may request additional materials. Final funding decisions are made by the C3 Fund Investment Oversight Committee. If the applicant agrees to funding through the BFF program, the funding decisions will be made by the MCEC Board of Directors.  

Post-Award 

What reporting is required after receiving a C3 Fund award?
Unless specified in award documents or agreements, award recipients are required to provide reports to the C3 Fund Investment Oversight Committee at least annually. Reports should include the construction or implementation status of the project or program, a financial statement specifying the amount of C3 Funds spent in the preceding fiscal year, a summary of operations and activities during the preceding fiscal year, and any other information reasonably requested by the Committee. If an event occurs that may delay or materially impair the project, the award recipient must report to the Committee as soon as the impairment arises.