Investment Window 2: Line of Credit for Solar Developers & Installers
Investment Window 2 (IW2) is a revolving line of credit that provides flexible capital to solar project developers and installers. Traditional lenders typically don’t engage until later construction milestones, leaving developers to cover upfront expenses with limited working capital. Similarly, installers that do not have a large balance sheet also struggle to raise affordable and flexible working capital lines from traditional banks. IW2 bridges that gap and as the line is repaid, the same pool of capital is redeployed to support additional clean energy projects across Maryland.
How to Apply
All applicants, developers and installers, will apply through the C3 Fund IW2 application on this page.
Who Can Apply
IW2 is open to Maryland-based or Maryland-serving entities, including:
- Corporate entities
- Nonprofits
- Entities that own or control Maryland-sited solar PV
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 C3 Fund.
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
- Site preparation and EPC mobilization
- Initial construction and commissioning costs
IW2 does 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. Each draw request must be supported by invoices or, where appropriate, an itemized statement documenting use of funds against permitted uses.
Preferred Funding Terms
General Parameters*: To ensure fairness and consistency among applicants, the C3 Fund has established general parameters for facility 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.
- Line size: up to $1,500,000
- Tenor: up to 24 months
- 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: 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. Additional credit standards include:
- 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 C3 Fund’s commitment under 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.