Aligned Climate Capital Closes $240M Solar Fund, Surpassing Target
Aligned Climate Capital has announced the final close of its sixth distributed solar fund, Aligned Solar Partners 6 LP (ASP6), at more than $240 million, surpassing its original $200 million target. The fund secured institutional participation from insurance companies, endowments, foundations, and family offices, marking Aligned’s largest investment partnership to date.
ASP6 acquires construction-ready distributed solar projects from development partners across the U.S., finances their build-out, and delivers returns through tax credit monetization, operating income distributions, and portfolio sales to institutional infrastructure investors.
“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,” said Peter W. Davidson, CEO of Aligned Climate Capital. “We have been investors in this market for more than a decade and understand how solar can deliver consistent cash returns for our investors each year.”
Aligned Solar Partners (ASP) has focused its investments on the middle market of solar since 2018. The firm currently owns and operates over 65 MWdc across seven states, targeting underserved and rural markets where it sees unique advantages.
Aligned finances construction with a blend of equity and construction debt, monetizes tax credits, and secures low-cost, permanent debt for long-term stability. Seminole Financial Services has provided construction debt for ASP6 and prior ASP funds.
Solar projects acquired range from 1 MWac to 10 MWac, sourced from U.S. development partners, including Rewild Renewable, which developed two ASP6 projects in Delaware. ASP6 has placed more than 25MW of distributed solar projects in service across Maine and Washington, D.C.
Additional projects are under construction or scheduled to begin within the next two years, with most of the fund’s capital already committed. Initial cash distributions to investors are expected in 2025, with annual distributions thereafter. Following the tax recapture period, ASP6 plans to sell the operating portfolio to institutional investors.