Public Commentary: The material below sets out FG Capital’s perspective on Distributed-Generation carbon-credit transactions. It is provided solely for informational purposes and does not constitute investment advice or a solicitation.
DG Carbon Projects – Distributed Generation (Rooftop Solar, Microgrids) Structuring
Decentralised clean-energy assets—rooftop photovoltaics, hybrid microgrids, community-scale storage—reduce grid losses, displace fossil-based generation, and enhance resilience. When equipped with rigorous monitoring, these installations deliver certified emission reductions (VERs / CERs) in addition to electricity-bill savings. FG Capital provides technical diligence, tailored financing, and reliable credit placement to translate distributed-generation rollouts into durable revenue.
Programme Components
• Rooftop & Carport Solar:
50 kW – 5 MW arrays for commercial, industrial, and municipal hosts.
• Hybrid Microgrids:
PV, battery storage, and backup gensets serving campuses or remote communities.
• Community Solar Gardens:
Shared-ownership arrays with virtual-net-metering allocation.
• Behind-the-Meter Storage:
Lithium-ion systems delivering peak-shaving and demand-response revenue.
• Advanced Metering & Controls:
Revenue-grade meters, data gateways, and cloud-based monitoring platforms.
Advisory Framework
1 | Feasibility & Baseline Modelling
• Host-load profiles, irradiance studies, and business-as-usual grid-emission factors aligned with methodologies AMS-I.D or ACM0002.
2 | Capital Structuring
• Power-purchase agreements (PPAs), solar-lease structures, and senior green loans matched to credit-issuance cadence.
• Advance credit-purchase contracts enhancing debt-service coverage.
3 | Implementation Oversight
• EPC diligence, performance-ratio guarantees, and interconnection management.
4 | MRV & Certification
• Continuous meter data, inverter monitoring, and periodic third-party verification.
5 | Credit Monetisation
• Long-term offtake agreements with compliance entities; spot-sale facilitation following issuance.
Indicative Financial Parameters
| Metric | Rooftop Solar | Hybrid Microgrid |
|---|---|---|
| CapEx (USD / kW) | 850 – 1 100 | 1 350 – 1 800 |
| Emission-Reduction Factor (tCO 2 e / MWh) | 0.45 – 0.80 (grid dependent) | |
| Forward Credit Price (USD / t) | 9 – 13 | |
| Target Equity IRR (post-tax) | 12 % – 16 % | 13 % – 18 % |
Representative Capital Stack
| Tier | Security Package | Cost of Capital | Typical Providers |
|---|---|---|---|
| Senior Green Loan | Pledge over PV assets and PPA revenues | SOFR + 225 – 300 bps | Infrastructure lenders, green-bond investors |
| Subordinated Facility | Second-lien; cash-sweep covenant | SOFR + 425 – 550 bps | Private credit funds |
| Advance Credit Purchase | Delivery contract; make-good provisions | Fixed price USD 10 / t | Compliance entities, corporate buyers |
| Sponsor Equity | Residual cash flow | Target IRR 12 % – 18 % | IPP developers, aggregators |
Stakeholder Benefits
- Host Facilities: Reduced electricity costs, resilience gains, and reputational benefits.
- Credit Purchasers: High-integrity avoidance credits from decentralised clean-energy deployment.
- Investors: Predictable cash flows anchored by PPAs and credit offtake.
- Communities: Reduced grid congestion, local job creation, and improved air quality.
Engagement
Corporations, municipalities, and project developers interested in distributed-generation carbon projects are invited to engage with our advisory team regarding feasibility assessments, financing structures, and rigorous MRV frameworks.
This document has been prepared solely for informational purposes. It does not constitute investment advice and should not be interpreted as an offer to buy or sell any security, financial instrument, or service. Independent professional guidance is advised before acting on any information contained herein.
