Aligned Climate Capital’s Largest Solar Fund Exceeds $200 Million Target

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Approximately two months ago, we published about Aligned Climate Capital’s 6.1 MW community solar power project in the D.C. area. This despite what is happening at the federal level with tariffs, volatility, DOGE, protests, etc., and that really is the good news. Clean energy and sustainability in general are long-term trends which are greater than the ephemeral nature of politics, politicians, and pundits. 

Aligned Climate Capital has accomplished more recently, having secured additional commitments for its distributed solar fund, Aligned Solar Partners 6 LP (ASP6). This fund’s $200 million target size has been exceeded.

Peter W. Davidson, CEO of Aligned Climate Capital, answered some questions about the funding.

How do you work with global institutional investors, including insurance companies, endowments, foundations, and family offices to raise funds and deliver returns?

We manage investment funds where Aligned serves as the General Partner and our institutional investor partners invest as Limited Partners.  We then manage the fund over its investment period to achieve the targeted returns. 

For you, is distributed solar all community solar or does it take different forms?

To us, distributed solar is an umbrella term that includes community, commercial & industrial solar, and small-scale utility projects. Solar is like goldilocks. You have small residential systems and large utility-scale projects at the other end of the spectrum.  We’re focused on the middle market of solar, which we believe is the quiet workhorse of the clean energy transition, because it’s big enough to have a meaningful impact but small enough to avoid the long interconnection timelines and permitting requirements for utility-scale. 

How do you identify underserved areas for more solar power development?

We work with our development partners to target areas with good interconnection capacity, stable regulatory environments, and a desire to permit these projects.  Specifically, we target rural areas, low-income communities, and energy communities with high historical fossil fuel employment where we can create new economic development, tax revenue, and jobs.  

Are some of your investors specifically looking for alternatives to investing in fossil fuels?

Our investors are looking to make strong risk-adjusted returns in the clean energy transition. Some are purely motivated by returns in a market where electricity demand is rising and clean energy is the cheapest, cleanest, and fastest source of new power generation. Others are looking for mission-aligned investments that deliver strong returns, but also achieve climate and social impacts.

Can you share what your average rate of return is, or is that private?

Unfortunately, we are unable to share our average rate of return but we’re encouraged by the momentum across our portfolio as we execute on our strategy, scale assets under management, and unlock new market opportunities.

Can individuals invest with you?

Our funds are limited to institutional investors. If individuals meet the Qualified Purchaser requirements, they can invest.  In general, our investors are larger institutions — pensions, insurance companies, endowments, foundations, and family offices. 

How many more MW of solar power will you develop in the next 5 years?

We expect to acquire and construct more than 150 MW in this fund over the next two years. Our goal is to continue to grow our portfolio at this rate, or more, over the next five years. We believe there is significant opportunity and scale in this market.