GP Snapshot: Enterprise advances with solar bridge fund while legal battles over federal funding ensue

Overview

• Name: Enterprise Community Partners’ Renewable Energy Bridge Fund
• Headquarters: Columbia, Maryland
• Website: enterprisecommunity.org
• Investment focus: Solar ITC bridge financing for affordable housing
• Investment geographies: North America
• Eligible LPs: Donor-advised funds, family offices, foundations, HNWIs, institutional investors, accredited investors

Amid legal undercertainty for federal climate grants, Enterprise Community Partners is pushing ahead with a fund designed to accelerate solar energy adoption on affordable housing properties. 

The community development financial institution is looking to raise $50 million for its Renewable Energy Bridge Fund, which provides short-term financing for affordable housing owners and developers that are eligible for solar tax credits. 

A key program that would have supported its borrowers—the $7 billion Solar for All program, passed under the Biden administration’s Inflation Reduction Act—is in jeopardy after the US Environmental Protection Agency announced it would cancel awarded grants. Enterprise still expects borrowers to be eligible for federal investment tax credits, or ITCs, which help building developers and owners offset renewable energy costs. The fund will provide financing for building owners’ solar installation and related construction costs while waiting to receive the ITCs. 

“With federal funding at risk or sunsetting, there is now the immediacy to establish this fund, to help developers realize these impactful housing stabilization, cost saving and decarbonization projects that have stalled because of an absence of other funding sources,” Enterprise’s Anna Smukowski told ImpactAlpha.

With the Trump administration’s One Big Beautiful Bill, ITCs are sunsetting six years ahead of schedule; building owners have only until July 2026 to take advantage of the credits. 

Enterprise says its bridge funding for affordable housing owners is needed more than ever with rising energy costs putting pressure on property owners’ budgets. Many are having to choose between increasing rents and building maintenance. 

Enterprise aims to finance solar projects on properties housing 10,000 individuals and families.

The fund has secured $20 million in soft commitments from banking partners. It is managed by Enterprise Community Loan Fund.