Aligned Climate Capital Secures $33 Million Financing for Delaware Community Solar Projects
As electricity costs continue to rise across Delaware, community solar projects are emerging as an important solution to provide customers with access to affordable, locally generated renewable energy. In response to growing demand for clean power alternatives, Aligned Climate Capital has secured $33 million in construction financing for two community solar developments in Delaware through its Aligned Solar Partners 6 (ASP6) fund.
The financing, provided with support from Live Oak Bank’s Renewable Energy Lending team, will help advance the construction of Rifle Range Solar in Bridgeville and Delaware Avenue Solar in Harrington. Both projects are participating in Delaware’s Community Energy Facility program, which is designed to expand access to renewable energy while ensuring benefits reach a broader range of residents, including low-income households. Under the program, at least 15% of project subscribers must qualify as low-income customers.
The two solar facilities represent a significant investment in Delaware’s clean energy infrastructure and demonstrate the growing role of distributed solar generation in meeting community energy needs.
“Community solar is an important part of the nation’s energy infrastructure, delivering clean power close to the communities that use it,” said Peter Davidson, CEO of Aligned Climate Capital. “These projects reflect why we continue to invest in the middle market of solar. Live Oak Bank understands how to finance projects like these, and their support will help move Rifle Range Solar and Delaware Avenue Solar toward commercial operation.”
Once operational, the two projects are expected to generate approximately 18.2 million kilowatt-hours of electricity annually. This output is estimated to provide enough clean energy to serve around 1,661 Delaware homes, helping reduce reliance on traditional power sources while supporting the state’s renewable energy goals.
The projects are being developed by ReWild Renewables and constructed by Solar Gaines. Beyond delivering clean electricity, the developments are expected to create approximately 141 construction and installation jobs, providing economic benefits for local communities during the build-out phase.
The financing builds on an ongoing partnership between Aligned Climate Capital and Live Oak Bank. Previously, Live Oak Bank provided financing for six projects included in Aligned’s fifth infrastructure fund, Aligned Solar Partners 5, across Maine and New Jersey. The latest investment continues collaboration between the two organizations as they expand support for community-scale renewable energy projects.
“Live Oak Bank is proud to continue our work with Aligned Climate and support community solar development in Delaware,” said Jennifer Williams, Managing Director of Renewable Energy Lending at Live Oak Bank. “These projects bring local jobs, carbon reduction and electricity savings to communities like Bridgeville and Harrington, and we are pleased to help move both sites toward commercial operation.”
Both Delaware projects are also benefiting from federal clean energy incentives established through the Inflation Reduction Act (IRA). The Investment Tax Credit provides financial support for eligible renewable energy developments, helping reduce project costs and encourage additional investment in solar infrastructure.
Delaware Avenue Solar is eligible for an additional tax credit benefit because of its location in an IRA-designated Energy Community in Kent County. The designation applies to areas with historical fossil fuel employment and economic conditions that meet federal requirements, allowing qualifying renewable projects to receive an additional 10% bonus credit.
The development of Delaware Avenue Solar also involved careful environmental planning and collaboration with state and federal agencies. During required environmental reviews, a pre-contact archaeological site was discovered at the project location. To protect the culturally significant area, Aligned Climate Capital and Solar Gaines redesigned the project in coordination with the Delaware State Historic Preservation Office, the U.S. Department of Agriculture, and affected tribal nations.
The revised design incorporated surface-ballasted racking, above-ground cable management systems and ballasted fencing, allowing construction to proceed without disturbing the sensitive underground area. The archaeological site remains preserved, and the U.S. Department of Agriculture recognized the approach as a possible model for future renewable energy projects facing similar land-use challenges.
Aligned Climate Capital’s ASP platform focuses on investing in distributed solar, energy storage and other clean energy technologies. The company’s approach involves acquiring construction-ready renewable energy projects from development partners, financing their construction and managing assets through long-term operations.
Through Aligned Climate Solar Partners 6, the company works with commercial lenders, government financing programs and other strategic partners to secure construction and permanent debt financing for renewable energy projects once they reach the development stage.
The Delaware community solar projects highlight the growing importance of distributed renewable energy in addressing rising electricity costs, expanding clean power access and creating economic opportunities. By combining private investment, federal incentives and community-focused energy programs, the developments are expected to contribute to Delaware’s transition toward a more resilient and sustainable energy future.
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