Aligned Climate Capital Launches $500 Million Distributed Solar and Storage Fund

Decarbonization-focused investment firm Aligned Climate Capital announced the launch and first close of Aligned Solar Partners 7 (ASP7), its seventh infrastructure fund focused on acquiring and developing distributed solar and energy storage projects across the U.S.

The firm said that it is targeting $500 million for the new fund, more than twice the size of its most recent predecessor, ASP6, which closed in 2025 at $240 million. According to Aligned Climate, the new fund comes as U.S. electricity demand is rising for the first time in decades, driven by data center expansion, industrial reshoring, and transportation electrification, with the firm noting that while new natural gas capacity faces multi-year turbine delivery timelines, solar and storage can be financed, permitted, and built faster than most alternatives.

Peter Davidson, CEO of Aligned Climate Capital, said:

“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. 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.”

Aligned Climate launched its Aligned Solar Partners strategy in 2018, which focuses on acquiring middle market construction-ready solar and storage projects sourced from development partners, financing their build-out, and managing the assets through operations.

Since the launch of the initial strategy, the ASP funds have acquired 56 projects across 10 states, which have generated more than 218 GWh of clean energy. Aligned Climate said that it has already identified more than 500 MW of potential projects for ASP7.