Aligned Climate Capital has closed $33 million in construction financing for two community solar projects in Delaware, providing a timely expansion of locally generated clean energy as the state expects electricity rates to increase this summer. The financing, provided by Live Oak Bank’s Renewable Energy Lending team, supports the build-out of assets held within the Aligned Solar Partners 6 (ASP6) fund. According to Peter Davidson, CEO of Aligned Climate Capital, these projects underscore the importance of investing in the solar middle market to deliver clean power close to the communities that utilize it.
Aligned Solar Partners 6 Financing for Rifle Range and Delaware Avenue Solar
The $33 million in funding is allocated to the Rifle Range Solar project in Bridgeville and the Delaware Avenue Solar project in Harrington. Both sites are currently under construction and participate in Delaware’s Community Energy Facility program, which mandates that at least 15 percent of subscribers be low-income customers. Together, the projects total approximately 11.8 MWdc and are expected to generate roughly 18.2 million kWh annually, which is estimated to serve 1,661 Delaware homes.
Developed by ReWild Renewables and constructed by Solar Gaines, the projects are expected to support approximately 141 jobs during the construction and installation phase. Jennifer Williams, Managing Director of Renewable Energy Lending at Live Oak Bank, noted that the projects bring carbon reduction, local jobs, and electricity savings to the Bridgeville and Harrington communities.
Tax Credits and Siting Adjustments in Kent County
The projects utilize the Investment Tax Credit under the Inflation Reduction Act (IRA). The Delaware Avenue Solar project specifically qualifies for an enhanced credit rate because it is located in an IRA-designated Energy Community in Kent County. This location meets federal criteria for above-average unemployment and historical fossil fuel employment, allowing the project to receive a 10% bonus credit.
During the mandatory environmental review, a pre-contact archaeological site was identified at the Delaware Avenue location. To preserve the site intact, Aligned and Solar Gaines collaborated with the U.S. Department of Agriculture (USDA), the Delaware State Historic Preservation Office, and affected tribal nations to redesign the project. The revised plan utilizes surface-ballasted racking, ballasted fencing, and above-ground cable management to avoid all subsurface work. The USDA noted this specific approach as a potential model for future clean energy projects facing similar siting constraints.
Live Oak Bank and Aligned Solar Partners Partnership
The financing continues a long-term partnership between Aligned Climate Capital and Live Oak Bank. Live Oak Bank previously provided financing for six projects in Aligned’s fifth infrastructure fund, Aligned Solar Partners 5, which were located across Maine and New Jersey. This latest agreement extends that partnership across the ASP fund series.
Aligned Solar Partners' strategy involves acquiring construction-ready distributed solar, energy storage, and other clean energy projects from development partners, financing the build-out, and managing the assets through operations. For the ASP6 fund, the firm works with commercial lenders and government loan programs to secure permanent and construction debt once projects are under exclusivity. As of December 31, 2025, Aligned Climate Capital manages approximately $2.2 billion of assets.
Key Takeaways
- The Rifle Range and Delaware Avenue solar projects total 11.8 MWdc and are expected to avoid approximately 11,100 metric tons of CO2 annually.
- Delaware Avenue Solar qualifies for a 10% IRA bonus credit due to its location in a designated Energy Community in Kent County.
- The projects are expected to deliver approximately $9 million in total savings over their full operational life.
EnergyInsyte's Take
This deployment highlights the role of the Inflation Reduction Act's bonus credits in making middle-market community solar economically viable. The project's redesign to protect archaeological sites suggests a scalable approach for developers facing strict environmental or historical permitting constraints. Executives should monitor how these "ballasted" design models impact deployment timelines and costs in sensitive regions.
Source: Businesswire
