Aligned Climate Capital Closes $240M Solar Fund

Aligned Climate Capital has closed its sixth distributed solar fund, Aligned Solar Partners 6 LP (ASP6), with over $240 million in commitments—well above its $200 million goal. This is the firm's largest fund to date, demonstrating strong investor confidence in both Aligned's strategy and the overall momentum in the U.S. clean energy market.

The over-subscribed fund reflects growing interest in sustainable infrastructure and the rising importance of solar power in powering the country's increasing electricity needs. ASP6 has drawn solid institutional support from a wide pool of investors that includes international insurance companies, university endowments, philanthropic foundations, and family offices all looking for stable, long-term returns consistent with environmental impact objectives.

Peter W. Davidson, CEO of Aligned Climate Capital, highlighted the strategic importance of solar energy in the current energy landscape. “The U.S. needs new power generation to meet growing electricity demand, and solar energy is the cheapest, fastest, and cleanest technology in the market,” he said. Davidson emphasized the firm’s decade-long experience in the sector and its ability to generate consistent cash returns for investors through distributed solar investments.

The fund's emphasis is on purchasing construction-ready distributed solar projects, between 1 megawatt alternating current (MWac) and 10 MWac, from its established development partners. These projects are situated in underserved and rural markets in the United States—markets that Aligned believes hold untapped potential for reliable and effective solar deployment. ASP6 uses a combination of debt and equity capital to build its solar facilities and hedges using federal tax credits to enhance returns. Investor annual distributions are intended to begin in 2025, after following a disciplined investment and tax recapture schedule.

To date, ASP6 has already deployed over 25 MW of distributed solar capacity, with operating projects in Maine and Washington, D.C. Further development is underway in several other states. The fund's ultimate objective is to install over 150 MW of solar capacity in seven U.S. states, roughly doubling Aligned Climate Capital's current distributed solar footprint. This aggressive expansion not only serves to address energy requirements but also to promote local economic growth and environmental benefits within the areas served.

Joe Ritter, Principal of Seminole Financial Services—one of the fund's major construction lenders—had no doubt about Aligned's method. "This portfolio is an example of the kind of deliberate, well-crafted projects Seminole seeks to finance," he stated. "These are solidly anchored investments that also bring meaningful returns in the form of positive community impact."

Long-term partnerships permeate Aligned's investment model. The company has continued to have ongoing relationships with stable development partners that specialize in bringing shovel-ready, financially solid solar projects. ReWild Renewables is one of them, which developed two ASP6-funded projects in Delaware. Pat Jackson, Co-founder and Managing Member of ReWild Renewables, spoke highly of the partnership: "In this volatile market, it's good to have partners like Aligned who not only pledge to build solar projects but actually follow through on that commitment."

The success of ASP6 supports Aligned's dedication to scaling clean, distributed energy infrastructure in service of America's transition to renewable power. Since its entry into the distributed solar sector in 2018, the company has posted a proven record of compelling returns and regular distributions of cash while driving environmental and social impact goals.

As ASP6 sets the stage for new energy infrastructure throughout rural and underserved areas, it is a testament to increasing overlap between climate-aware investment and market opportunity. Aligned Climate Capital's new fund positions it at the leading edge of a fast-changing clean energy economy, with a specific focus on providing both financial returns and sustainable value.