Aligned Climate Capital solar fund exceeds $200M target | Solar Financing Spotlight
This edition of Solar Financing Spotlight illuminates a major fundraising effort by Aligned Climate Capital, an RFP from PECO, DC Green Bank’s latest support for energy-efficient affordable housing in Washington, D.C., plus several other updates. Let’s get right to it.
As demand for clean, reliable energy continues to rise across the U.S., Aligned Climate Capital announced the final close of its sixth distributed solar fund, Aligned Solar Partners 6 LP (ASP6), with commitments above the $200 million target fund size. ASP6 achieved final close with participation from leading institutional investors in the United States and globally, including insurance companies, endowments, foundations, and family offices.
Aligned has been investing in the distributed solar market since 2018, and this Fund represents its largest investment partnership to date. Aligned has achieved strong financial returns in this strategy to date, with significant realized returns to investors and consistent annual cash distributions. 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) is Aligned’s primary infrastructure strategy, which has been investing capital in the “middle market” of solar since 2018. To date, the firm owns and operates more than 65 MWdc of projects across seven states. It has consistently targeted underserved and rural markets, which it believes have unique advantages. It finances construction with a combination of equity and construction debt, then monetizes the tax credits and secures long-term, low-cost permanent debt. Aligned has placed construction debt with Seminole Financial Services for this portfolio and prior ASP funds.
Aligned acquires solar projects ranging from 1 MWac to 10 MWac from development partners across the U.S. Many of these developers have collaborated with Aligned on multiple successful projects over the years. The firm prioritizes development partners with a consistent track record of delivering financially viable, construction-ready assets. One such partner, Rewild Renewables, developed two of the Fund’s current projects in Delaware.
“In this unstable market, it’s good to have partners like Aligned who not only commit to building solar projects but deliver on that promise,” said Pat Jackson, co-founder and managing member of ReWild Renewables.
ASP6 has already placed more than 25 MW of distributed solar projects in service in Maine and Washington, D.C. The fund has also acquired additional solar projects in other states, which are under construction or scheduled to begin over the next two years,
PECO launches new solar RFP to support Pennsylvania projects
PECO has launched new competitive request for proposal (RFP) to procure long-term renewable energy, capacity, and associated solar photovoltaic alternative energy credits (SPAECs) from new solar projects in Pennsylvania. The RFP, approved by the Pennsylvania Public Utility Commission (PUC), is designed to support the continued expansion of solar power generation across the state.
Supporting the deployment of solar energy in the region is a top priority for PECO as the company works toward a cleaner and brighter future for its customers and communities. Through this RFP, PECO intends to enter into fixed-price power purchase agreements (PPAs) for up to 25 megawatts (MW DC) in aggregate of solar generation for a term of 10 years. To qualify, projects should have an anticipated in-service date on or before May 31, 2029.
The company is accepting proposals for a share percentage of projects that are larger than 25 MW — the minimum size of each solar project is 5 MW. All projects must be connected to the PJM Interconnection grid, and capable of selling energy and capacity into PJM markets. In addition, projects must qualify as Tier I solar Alternative Energy Systems under Pennsylvania’s Alternative Energy Portfolio Standards (AEPS) Act.
DC Green Bank, PACE Equity invest $3.1 million energy-efficient housing
DC Green Bank and PACE Equity announced $3.1 million in financing for a new, energy-efficient affordable housing development in Washington, D.C.’s Ward 4 district. The development will deliver eight new affordable homes in a building that meets Enterprise Green Communities Certification Plus, one of the highest standards for energy-efficient buildings. This investment will support the installation of solar panels; a green roof; energy-efficient insulation, HVAC, and lighting; and water-efficient fixtures. Together, these improvements are expected to cut annual utility costs by $10,000. The project is also expected to create dozens of construction jobs.
This critical financing supports DC-native and emerging developer Gayle Berkley as she builds a small business and affordable housing along Kennedy Street NW. DC Green Bank supported Ms. Berkley through its Community Impact Initiative, which provides technical assistance and access to affordable loans for clean energy and energy efficiency projects for small businesses and community organizations from historically underserved communities.
This project is the first to combine direct investment from DC Green Bank with financing through the DC PACE Program, bringing together public and private capital to support energy-efficient affordable housing development. DC Green Bank provided $1.9 million in financing and PACE Equity provided a $1.2 million commercial PACE loan.
“DC Green Bank’s financing paired with the DC PACE Program will catalyze investment in affordable housing,” said Trisha Miller, CEO of DC Green Bank. “This project is an example of supporting small business growth in DC and contributing to inclusive prosperity on Kennedy Street.”
The building is expected to be completed by March 2026.
Doral Renewables secures tax equity financing for Great Bend solar project
Doral Renewables LLC has closed tax equity financing for its Great Bend solar project. Fifth Third Bank committed to invest up to $30 million of tax equity into the project. Doral Renewables and Fifth Third will also both receive proceeds from a tax credit transfer transaction to be completed later this year.
The Great Bend project is located in Meigs County, Ohio, approximately 100 miles southeast of Columbus, and near the southwestern border between Ohio and West Virginia. The project will be a ground-mounted single-axis PV system and once completed it will have 48 MWac of solar power generating capacity.
Doral expects that the facility will power approximately 9,000 homes once in operation. The project will generate revenue both from energy and renewable energy certificates via a long-term Power Purchase Agreement (PPA) with one of the largest investor-owned utilities in the U.S. Furthermore, the Great Bend project will provide a major economic uplift for the Meigs County, with over $400,000 per year of new annual tax revenue. Doral Renewables expects that the Great Bend project will reach commercial operations during the fourth quarter of 2025.
Solar Landscape receives $175 million for 74 projects
Solar Landscape has announced a landmark $175 million long-term partnership with PGIM Private Capital, to finance its growing portfolio of projects that feed electricity directly into the distributed grid, initially across Maryland and Illinois.
PGIM Private Capital is the private capital arm of PGIM, the $1.4 trillion global investment management business of Prudential Financial Inc.
The partnership, in the form of an institutional shelf debt facility, will finance the construction and operations of 74 Solar Landscape projects in Maryland and Illinois on 3 million sq ft of commercial rooftops, creating nearly 43 MWdc of solar capacity for the surrounding communities.
“Commercial rooftop solar is America’s most shovel-ready energy source and this financing enables us to build more and build it faster,” said Solar Landscape chief financial officer Clayton Avent. “This debt investment is another example of PGIM Private Capital’s long track record of strong investment into the energy sector. The first wave of these projects is already generating electricity to meet the country’s growing demand.”
Deriva Energy completes financing for 2 established projects
Deriva Energy LLC has completed a $127 million debt financing for a portfolio of two operating energy assets. Principal Asset Management and MetLife Investment Management provided Senior Secured Notes to the portfolio, which is comprised of two projects owned and operated by Deriva, Ledyard Wind and Pisgah Ridge Solar. Ledyard Wind is a 207 MW wind facility in Kossuth County, Iowa, and Pisgah Ridge is a 250 MW solar facility located in Navarro County, Texas. Both projects began commercial operations in 2022 and sell power under long-term power purchase agreements with two high quality corporate purchasers.
This is the second debt financing arranged with Principal Asset Management and MetLife Investment Management since Brookfield’s purchase of Deriva in October 2023. Both firms invested in a $207 million Deriva debt transaction in October 2024.
Heelstone Renewable Energy acquires Valor Infrastructure Partners assets
Utility-scale renewable energy platform Heelstone Renewable Energy has acquired the wind and solar development assets and the team of Valor Infrastructure Partners (VIP), a renewable energy company based in Palm Beach, Florida. This transaction marks Heelstone’s first acquisition since its purchase in May 2024 by global investment and management firm Qualitas Energy.
The acquired portfolio of development-stage projects includes a number of early-stage onshore wind projects in the Western region of the country, as well as an advanced-stage solar PV project in Texas, which has an expected installed capacity of 190 MWp and a targeted commercial operation date between 2027 and 2028.
As part of the transaction, 11 experienced professionals from VIP will join Heelstone’s team, including Mike Weich, former CEO of VIP, who will assume the role of CEO at Heelstone, and Daryl Hart, former chief development officer of VIP, who will take on same role at Heelstone.
Headquartered in Durham, North Carolina, Heelstone now comprises around 60 employees whose capabilities span the full lifecycle of renewable energy projects
With a portfolio of more than 5 GW and a track record that has been built over more than a decade, Heelstone continues to grow as a premier renewable energy development platform. Under the ownership of Qualitas Energy, the company is evolving into a fully integrated IPP and reinforcing its intention to become a market leader in developing, de-risking, and executing renewable energy projects.
