Accelerating Solar LMI Communities
The Bridge Finance Facility (BFF) is a financing program administered by the Maryland Clean Energy Center (MCEC) in partnership with the Maryland Energy Administration (MEA). Capitalized with funds from the Strategic Energy Investment Fund (SEIF), the BFF accelerates the development of Maryland-sited solar photovoltaic (PV) projects by addressing critical pre-construction and early-construction financing gaps that often delay otherwise viable projects. The BFF supports community solar and affordable multifamily solar projects that benefit low- and moderate-income (LMI) households across Maryland.
Now in its second round, financing from the BFF is being delivered in coordination with the Climate Catalytic Capital (C3) Fund, Investment Window 1 (IW1), which provides bridge loans for clean energy projects including community solar.
Affordable multifamily housing owners and developers exploring solar at the feasibility stage are eligible to apply for the C3 Fund’s Investment Window 3 (IW3): Project Feasibility Grants for Underserved Market Actors.
Applications for the second round are open starting May 13, 2026, in conjunction with the C3 Fund intake process. Visit the C3 Fund web page to learn more and apply.
Please note: Future rounds may use a different delivery approach and may expand to additional project types.
Program Overview
The BFF provides short-term bridge loans (up to 12 months), typically ranging from $500,000 to $1,000,000 to support solar projects as they progress from development through construction. Loan proceeds may be used for eligible pre-construction and early-construction costs, including interconnection applications and deposits, engineering and design, permitting, equipment deposits and procurement, site preparation, and initial construction mobilization.
Low-to-moderate Income is defined in the Md. Code Ann., State Gov’t § 9-20B-05(i)(2)(iii) and §9-2016 (annual income at or below 150% of the average median income for the State).
Who Should Apply
The BFF is intended for solar developers and project owners seeking short-term financing to advance and support pre-construction and early-construction activities for community solar or affordable multifamily solar projects in Maryland.
Eligible Projects
Projects considered for financing must meet the following general criteria:
- Location: Solar PV projects sited in Maryland
- Project Size: Up to 2 MW AC per project
- Eligible Project Types:
- Community solar projects
- Affordable multifamily housing solar installations (rooftop or carport)
- LMI Benefits: Projects must deliver more than 50% of total benefits directly to LMI households to reduce their energy burdens by at least 20%, consistent with SEIF requirements and applicable State law
Project readiness is a key evaluation criterion. Applicants should demonstrate progress toward construction, including site control and a clear path to permanent financing or repayment.
Final eligibility determinations are made in accordance with the MCEC BFF Credit Policy.
Submission of an application does not guarantee funding. Projects are evaluated competitively based on eligibility, readiness, risk, and alignment with program priorities.
Eligible Uses of Funds
BFF loans are intended to support pre-construction and early-construction activities required to move projects from development into construction. Eligible uses of loan proceeds may include:
- 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-related costs
Loan proceeds may not be used for long-term operating expenses or purposes outside the scope of the approved MCEC BFF Credit Policy.
Financing and Legal Terms
- Eligible Borrower Types: Corporate entities, special purpose entities (SPEs), nonprofits, and multifamily housing cooperatives that own or control Maryland-sited solar PV project assets, including community solar and affordable multifamily solar projects
- Interest Rate: Fixed at approval and based on the SOFR rate at the time of loan approval, plus a spread determined by the project’s assessed risk and impact
- Collateral: a first-priority UCC lien and/or guaranty
- Loan Size: Up to $1,500,000 (preference for loans between $500,000 and $1,000,000)
- Tenor: Up to 12 months (with possible 6-month extension in some cases)
- Repayment: Interest-only payments during the term, with principal repaid at maturity
- Loan terms: Loan documents will include terms that are consistent with loans provided by Maryland State Instrumentalities
Loans are underwritten using conservative credit standards to protect public funds, including developer equity requirements, loan-to-cost limits, and appropriate collateral and guarantees.
How the BFF Works
1. Sourcing and Intake
Applicants submit a program intake form for initial consideration.
2. Qualification Screening
MCEC conducts an initial eligibility and risk/impact screening to confirm program fit. Projects may advance, pause pending additional information, or be declined and applicants will be informed accordingly.
3. Due Diligence and Underwriting
Selected projects undergo detailed reviews to confirm project readiness, financial viability, developer capacity, and a clear pathway to repayment.
4. Approval and Processing
Projects proceed through the program’s review and approval pathway in accordance with the BFF Credit Policy and applicable governance requirements. Please note: The projects must be approved by the MCEC Board of Directors.
5. Legal Documentation and Closing
Loan terms and conditions are finalized, and required legal documentation is executed. Once all conditions are satisfied, the project reaches financial close.
6. Funding, Draws, and Portfolio Management
Following closing, borrowers request funds based on an agreed draw structure. MCEC verifies draw conditions, disburses funds, and monitors project progress and compliance.
7. Loan Repayment
Borrowers make principal and interest payments per agreed upon terms.
Borrower Reporting Requirements
To support program oversight and required reporting, BFF borrowers must provide quarterly reporting during the loan term and submit a final Project Closeout report upon repayment. Reporting templates and guidance will be provided to borrowers.
Additional Resources
MCEC will hosted a one-hour informational webinar to review the BFF intake process and answer applicant questions. Watch a recoding of the presentation and Q&A.
Contact the MCEC Finance Team
Have a project or interested in learning more about the Bridge Finance Facility or any of our financing programs? Get in touch with us below—we’re ready to help!
NOTE: As MCEC is a body politic, and corporate and an instrumentality of the State of Maryland, information provided to MCEC is subject to disclosure under the Maryland Public Information Act and the Open Meetings Act.