Aligned Climate Capital holds first close for $500 million distributed solar, storage fund

Asset manager Aligned Climate Capital has reached the initial closing of its seventh infrastructure vehicle, Aligned Solar Partners 7 (ASP7), targeting $500 million to acquire, finance, and operate middle-market distributed solar and energy storage assets nationwide. The capital raise arrives amidst a broader acceleration in US electricity demand driven by data center expansions, industrial reshoring, and transportation electrification. 

The ASP7 fund targets construction-ready projects sourced from developer partners, funding their construction and holding the operating assets long-term. The firm has already identified a deal pipeline exceeding 500 MW of potential projects for deployment through the new vehicle.

The fund focuses specifically on middle-market distributed generation, community solar, and co-located energy storage assets. The projects include local, commercial-scale arrays that supply power to community subscribers or local distribution networks, as well as behind-the-meter solar and battery installations built directly on commercial, industrial, and institutional properties.

Through its six predecessor funds since 2018, Aligned’s infrastructure strategy has acquired 56 projects across 10 states, accumulating an operating portfolio that has generated over 218 GWh of clean electricity. Recent transactions across the platform include $33 million in construction financing for two Delaware community solar projects and the acquisition of a community solar development in Illinois. 

“Distributed solar and energy storage are now among the fastest ways to add reliable capacity to the grid, and the middle market is where much of that build-out actually happens,” said Peter Davidson, CEO of Aligned Climate Capital. “These projects need specialized financing and execution, which is what we have built the firm to do. The continued support from our investors gives us the capital to keep acquiring and building construction-ready projects.” 

Distributed solar and battery storage deployment has accelerated across domestic regional markets as utilities struggle with supply bottlenecks for traditional generation assets. Heavy-duty natural gas turbines currently face multi-year delivery backlogs, leaving solar-plus-storage platforms as one of the few generation resources capable of being permitted, financed, and interconnected on accelerated timelines. 

Founded in 2019, Aligned Climate Capital manages approximately $2.2 billion in total assets as of Dec. 31, 2025. The firm operates two primary strategies: the Aligned Climate Fund, which targets venture-stage clean energy technology companies, and Aligned Solar Partners, which owns and operates distributed infrastructure assets.

From pv magazine USA