Bridge financing supports rapid construction at solar and wind projects to meet federal tax-credit requirements
United States, August 15, 2025
Crayhill Capital has introduced a Tax Equity Bridge Lending programme offering facilities from $50 million to $500 million to help U.S. renewable developers meet tightened federal tax-credit qualification rules. The product pairs short-term bridge loans against anticipated tax-equity commitments with pre-construction and construction financing, preferred-equity step-up support, and equipment procurement assistance. Designed to accelerate meaningful construction activity while permanent tax-equity and construction financing are finalized, the programme aims to bridge timing gaps caused by stricter documentation and construction tests and to help developers secure long-lead components and close construction financing more quickly.
Lead: A new lending programme from an asset-based finance manager will offer between $50 million and $500 million to help US renewable energy developers bridge financing gaps and meet federal tax-credit timing rules that require projects to have started construction by 4 July 2026 or be placed in service by 31 December 2027. The programme bundles tax-equity bridge loans with pre-construction and construction financing aimed at solar, wind and battery projects.
The new facility provides capital upstream of final tax-equity closes by lending against future tax equity commitments. It combines several functions in one offering: pre-construction development financing, construction equity, and a preferred-equity step-up that can absorb timing risk. The solution also supports critical equipment procurement, helping projects secure long-lead items needed to begin meaningful construction activity.
Recent rule changes for federal investment tax credits (ITC) and production tax credits (PTC) set tight windows for developers. Qualifying projects must either begin construction by 4 July 2026 or be placed in service by 31 December 2027. In addition, evolving guidance and executive orders may raise the bar for what counts as “having begun construction,” potentially requiring demonstration of a substantial portion of the project being complete rather than counting only preliminary activities.
The facilities are sized from $50m to $500m and are aimed at pre-construction support for utility-scale solar and wind projects and co-located or standalone battery storage. The programme sits within a broader pre-construction financing initiative and is intended to be flexible enough for a range of project sizes and development stages.
The asset manager behind the programme has been active in renewable project financing since 2015 and reports more than $4 billion deployed across over 50 transactions. Its most recent closed fund raised roughly $1.31 billion, exceeding a $1 billion target and including a co-investment sleeve of approximately $162 million. The firm describes itself as an alternative asset manager focused on asset-based finance in the energy sector and operates as a partner-owned private credit manager registered with US securities regulators.
Earlier financing activity included a multi-year flexible capital relationship with a developer that provided about $275 million of growth capital to advance solar and storage projects into construction. At that time, the developer’s stated pipeline exceeded 12.7 GW of PV and 3.7 GWAC of storage, with near-term deployment targets of several gigawatts.
Industry participants face uncommon timeline pressure driven by both regulatory deadlines and growing electricity demand. Developers confronting the 2026/2027 tax-credit windows may need quicker access to construction capital and equipment procurement support to secure credit eligibility and meet interconnection and permitting milestones.
A Tax Equity Bridge Loan is short-term financing that covers development and early construction costs until tax-equity investors close or until the project reaches a stage where long-term financing can be secured. It is repaid through anticipated tax-equity proceeds or construction financing.
Developers of utility-scale solar, wind, and battery storage projects that need capital to start or accelerate substantial construction activities while preserving eligibility for federal ITC or PTC can consider this programme.
The programme is designed to front-load financing and procurement activity so projects can meet the construction-start or in-service thresholds required to qualify for federal tax credits by the specified deadlines.
The offering includes pre-construction development capital, construction equity, and a preferred-equity feature that steps up to cover timing and execution risk. It also supports procurement of long-lead equipment.
No. The loan provides financing to meet timing and construction requirements, but projects must still satisfy all regulatory and technical rules to claim federal ITC or PTC benefits.
| Feature | Details |
|---|---|
| Facility size | $50 million – $500 million |
| Primary uses | Pre-construction financing, construction equity, preferred equity step-up, equipment procurement |
| Target assets | Utility-scale solar, wind, battery storage |
| Objective | Enable substantial construction to meet ITC/PTC timing rules and monetize future tax equity |
| Relevant deadlines | Begin construction by 4 July 2026 or placed in service by 31 December 2027 |
| Historical deployment | Firm has deployed over $4bn across 50+ transactions since 2015; recent fund closed at ~$1.31bn |
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