Additional Funding & Financing Opportunities

The MEA manages grants, loans, rebates, and tax incentives to help meet the state’s sustainability goals. Through the following programs, as well as others for clean energy production and use, MEA helps finance the energy efficiency upgrades of Maryland businesses, nonprofits, and municipal governments.

• The Mechanical Insulation Grant program provides subsidies to eligible nonprofits and businesses that install mechanical insulation in buildings and industrial processes
• The MEA's Commercial, Industrial, and Agriculture grants provide funding for energy retrofit projects in commercial, industrial, agricultural, and nonprofit facilities
• The OPEN Energy Grant program funds projects that are outside of the MEA’s suite of established energy programs

USDA’s Rural Energy for America Program (REAP) offers no-cost technical and application support from the Maryland Clean Energy Center. This program is designed to reimburse businesses in rural areas for up to 50% of the costs of clean energy and energy efficiency projects.

Maryland’s Jane E. Lawton Conservation Loan program provides funds to help cover cost‑effective energy efficiency and conservation improvements for existing or to‑be‑constructed facilities. The program offers:

• A 2% interest rate for all commercial, nonprofit, or non‑public facilities in the state of Maryland requesting a traditional loan
• A 3% interest rate or all commercial, nonprofit, or non‑public facilities in the state of Maryland requesting a micro loan
• A 0% interest rate for all Maryland state and local governments and their instrumentalities

Maryland Clean Energy Center’s Capital Program (MCAP) gives governments, institutions, and nonprofits access to lower‑cost capital and an advantageous finance structure.

Maryland Climate Catalytic Capital (C3) Fund helps finance the implementation of clean energy measures and technologies intended to reduce greenhouse gas emissions and mitigate the impact of climate change.

Commercial Property Assessed Clean Energy (C-PACE) is a state and county policy-enabled program that allows private lenders to finance building upgrades and new construction of high‑performance buildings through a mechanism that allows property owners to make loan repayments through the county’s property assessment. This allocates the payments and benefits as the property changes ownership.

• State of Maryland PACE (administered by the Maryland Clean Energy Center)

Your county may have its own C‑PACE program.

• C-PACE status in Maryland counties

Fannie Mae and Freddie Mac provide different incentives for multifamily properties with green building certifications. Borrowers may receive a lower interest rate, which varies according to the type of certification obtained. Generally, the bigger the certification’s impact, the better the rate.

• Section 179D tax deduction (enhanced by the Inflation Reduction Act (IRA) of 2022): Designed to encourage energy‑efficient upgrades in commercial buildings. The deduction amount is based on the energy savings achieved. For properties placed in service after 2022, the deduction can be up to $5 per square foot. The amount increases with higher levels of building efficiency. 
  
  The Maryland Energy Administration’s Clean Buildings Hub contains a broad and thorough compilation of incentive and financing resources for businesses. 
   
• Montgomery County Property Tax Credit: A two-year property tax incentive for commercial and multifamily buildings. The lucrative credit is meant to encourage building owners and managers to improve energy performance and make progress towards complying with the county’s Building Energy Performance Standard.

Please note that Pepco is not a tax consultant. This information is not intended as personal tax advice. Please contact a tax professional or certified public accountant to confirm details specific to your qualifications and eligibility or visit irs.gov to learn more.

Energy Service Companies (ESCOs), including Energy as a Service (EaaS), assuming 100% of the cost and risk.

National Energy Improvement Fund for short‑term bridge loans to be paid back once incentives are received.

Sustainable and green bonds for large nonprofit and government projects, via a bond service company.

Traditional lenders, such as Bank of America and Citi, with goals for efficiency-, equity-, and sustainability‑related loans for all customer types.

Specialized lenders such as Nuveen Green Capital.

Fannie Mae Multifamily Green MBS (mortgage-backed securities), which is a fixed‑income single‑asset security backed by one loan and one property.