United States, August 15, 2025
News Summary
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.
Crayhill Capital launches $50m–$500m tax-equity bridge lending programme to help US renewable projects meet 2026/2027 deadlines
What happened: An asset-based finance firm has introduced a new Tax Equity Bridge Lending (TEBL) programme that offers facilities sized between $50 million and $500 million to help solar, wind and battery developers in the United States meet looming federal tax-credit deadlines. The product blends short-term tax-equity bridge loans with development and construction financing and equipment procurement support.
Why it matters now
New federal rules set hard dates for qualifying projects to secure federal investment tax credits (ITC) and production tax credits (PTC): projects must begin construction by 4 July 2026 or be placed in service by 31 December 2027. Additional executive direction may require projects to show a substantial portion of work completed rather than relying on preliminary activities to count as having started construction. Those timing and compliance pressures have increased the need for flexible interim financing that lets developers act quickly while preserving their ability to monetize tax credits.
What the TEBL programme offers
The programme provides a combination of:
- Pre-construction development capital—funds to advance permitting, interconnection, and site readiness;
- Construction equity and preferred equity step-up capital—support that bridges the gap to full construction financing;
- Tax-equity bridge loans—short-term advances secured against future tax-equity commitments to be repaid when tax equity is placed;
- Equipment procurement assistance—help with sourcing and securing critical long-lead components.
By tying pre-construction and construction funding to anticipated tax-equity commitments, the structure is designed to let developers begin the substantial construction activities regulators may require while giving lenders and sponsors a clear path to close permanent construction financing and monetize tax credits.
Scale and fit
Facilities are intended for projects or portfolios that need between $50m and $500m of bridge-style support. The solution targets both utility-scale solar and wind projects and co-located battery storage that face tight development schedules and supply-chain timing challenges.
Context on company capabilities
The manager behind the programme has been active in renewable asset finance since its 2015 launch and reports deploying more than $4 billion across over 50 transactions. Its latest flagship private fund closed with roughly $1.31 billion of capital commitments, exceeding a $1 billion target and including committed co-investment capacity. The broader firm is described as managing roughly $3 billion in alternative assets and focuses on asset-based investments in energy and infrastructure.
Market signals and partnerships
Industry ties include a prior flexible capital facility to a developer that provided $275 million to help advance projects into construction and scale solar-plus-storage platforms. That developer at the time reported a multi-gigawatt pipeline of PV and storage capacity. Public-facing discussions by firm leaders have also touched on topics such as Synthetic Risk Transfer, market dynamics between bank and non-bank capital, and the evolving investor appetite for asset-backed opportunities in energy markets.
Bottom line
The new TEBL programme is positioned as a targeted, asset-based bridge solution for developers racing to meet federal tax-credit deadlines and the evolving regulatory test for construction starts. It combines short-term tax-equity-backed lending, development and construction capital, and procurement assistance to reduce timing risk and smooth the path to long-term financing and tax-credit monetization.
Frequently Asked Questions
Q: What types of projects qualify for the TEBL facilities?
A: The facilities are aimed at utility-scale and large distributed solar, onshore wind, and co-located battery storage projects that require pre-construction and construction capital tied to future tax-equity commitments.
Q: How large are the loans or facilities?
A: Facility sizes range from $50 million to $500 million, intended for single projects or small portfolios that face near-term tax-credit qualification deadlines.
Q: How does the bridge structure work?
A: The structure advances capital ahead of permanent tax-equity and construction financing. Repayment or replacement typically occurs when tax equity is placed or construction financing is closed, with the bridge facility secured against project assets and future tax-equity commitments.
Q: What regulatory dates drive demand for this product?
A: Key thresholds include projects starting construction by 4 July 2026 or being placed in service by 31 December 2027. Additional policy clarifications may require visible completion of a substantial portion of a project.
Q: Does the programme help with equipment procurement?
A: Yes. The offering includes assistance for critical long-lead equipment procurement, which can be essential to meeting construction milestones and avoiding supply-chain delays.
Q: Who is the product designed for?
A: Developers that need a single capital partner capable of providing pre-construction, construction equity, and tax-equity bridge solutions with speed and certainty will find this product relevant.
Key features at a glance
| Feature | Detail |
|---|---|
| Facility size | $50m–$500m |
| Target sectors | Solar, wind, battery storage |
| Funding types | Tax-equity bridge loans, development capital, construction equity, preferred equity step-up |
| Primary use | Advance pre-construction and early construction to meet tax-credit deadlines |
| Regulatory drivers | Begin construction by 4 July 2026 or placed in service by 31 December 2027; potential substantial-completion tests |
| Additional support | Equipment procurement assistance |
| Manager track record | Over $4bn deployed across 50+ transactions since 2015; recent fund close ≈ $1.31bn |
Deeper Dive: News & Info About This Topic
Additional Resources
- Alternative Credit Investor: Crayhill Capital launches finance solution for US green energy projects
- Wikipedia: Tax Equity Bridge Lending
- IREI: Crayhill Capital Management closes third flagship fund with more than $1.3B
- Google Search: Crayhill Capital Management third flagship fund 1.31 billion
- PR Newswire: Crayhill provides $200M secured receivables financing facility to Stenn Technologies
- Google Scholar: Crayhill Stenn receivables financing 200 million
- PR Newswire: Urban Grid closes $275M debt refinance provided by Crayhill Capital Management
- Encyclopedia Britannica: Urban Grid debt refinance Crayhill
- ION Analytics / Mergermarket: Carlos Mendez on trends in SRT
- Google News: Carlos Mendez Crayhill SRT synthetic risk transfer
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