Aligned Climate Capital Closes $33M in Construction Financing for Delaware Community Solar Projects
Rifle Range Solar and Delaware Avenue Solar projects received financing from Live Oak Bank’s Renewable Energy Lending team
With Delaware electricity rates expected to increase this summer, community solar projects offer a timely opportunity to expand access to locally generated clean energy. To support expansion, Aligned Climate Capital has closed $33 million in construction financing on two Delaware community solar projects through its Aligned Solar Partners 6 (ASP6) fund, supported by Live Oak Bank’s Renewable Energy Lending team. Rifle Range Solar in Bridgeville and Delaware Avenue Solar in Harrington are both under construction and participating in Delaware’s Community Energy Facility program, which requires that at least 15 percent of subscribers be low-income customers.
“These projects reflect why we continue to invest in the middle market of solar,” said Peter Davidson, CEO of Aligned Climate Capital. “Community solar is an important part of the nation’s energy infrastructure, delivering clean power close to the communities that use it. 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.”
Together, the sites are expected to generate approximately 18.2 million kWh annually, enough to serve an estimated ~1,661 Delaware homes. Developed by ReWild Renewables and constructed by Solar Gaines, the projects are also expected to support approximately 141 construction and installation jobs.
Live Oak Bank previously financed six projects in Aligned’s fifth infrastructure fund, Aligned Solar Partners 5, across Maine and New Jersey, and its support for these Delaware sites continues that partnership across the ASP fund series.
“Live Oak Bank is proud to continue our work with Aligned 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.”
The Delaware projects benefit from the Investment Tax Credit under the Inflation Reduction Act. Delaware Avenue Solar also qualifies for an enhanced credit rate due to its location in an IRA-designated Energy Community in Kent County, where historical fossil fuel employment and above-average unemployment meet federal criteria for the 10% bonus credit.
Additionally, the Delaware Avenue site required a redesign to protect a pre-contact archaeological site identified during mandatory environmental review. Working with the Delaware State Historic Preservation Office, the U.S. Department of Agriculture and affected tribal nations, Aligned and Solar Gaines redesigned the project with surface-ballasted racking, above-ground cable management and ballasted fencing to avoid subsurface work in the sensitive area. The site was preserved intact, and USDA noted the approach as a potential model for future projects with similar siting constraints.
Aligned Solar Partners focuses on distributed solar, energy storage and other clean energy projects. Its strategy includes acquiring construction-ready distributed solar projects from development partners, financing their build-out and managing the assets through operations. For ASP6, Aligned works with commercial lenders, government loan programs and other partners to secure construction and permanent debt for projects once they are under exclusivity.
