How does capital investment work?
                     Distributed Energy -
How does capital investment 
work?
December 2020
Distributed Energy Overview
Distributed Energy
is a development and aggregation platform that 
connects renewable energy projects, primarily solar with funders. We accelerate the 
deployment of renewable energy (solar) across the developing world.
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What is Capital Investment?
Capital Investment refers to money or assets a company uses to achieve and 
further its business objective. Take for example- when an individual or a financial 
institution makes an investment in a business, a sum of money is handed over as 
a loan or in return for a promise of repayment or a share of the profits. In this 
sense, capital means cash. Capital investment can be made through purchasing 
key long-term assets that will facilitate the business to function smoothly. In this 
sense, capital means physical assets. This investment is done by using its own 
cash reserves, or by seeking a loan from a bank.
A company can seek capital investment from any sources like venture capital 
firms, angel investors and traditional financial institutions. The capital is used to 
develop its targets and ultimately helps to increase the firms’ value. 
Looking at the various sectors for the last decade, renewable energy had shown a 
significant rise in its investment trends. The major portion of these investments is 
the capital for solar. 
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Role of Distributed Energy in Capital 
Investment
At Distributed Energy, we focus on leveraging our expertise in the renewable 
energy sector by providing an aggregation platform that facilitates 
capital investments in distributed small-scale solar projects across developing 
countries such as India, Middle East and East Africa.
Ultimately, our goal is to bridge the gap between the growing number of solar 
projects and availability of funds for them. Many small-scale solar energy 
projects, especially in the developing stage are unable take off due to lack of 
funding/ financial backing. Our focus on this niche market puts us in a unique 
position that allows investors of all classes to invest in an asset class that was 
traditionally available to larger institutions only. Expanding this investment option 
to a broader range of investors means we are providing a largely untapped 
service that is closely aligned with their values and also provides an attractive, 
annuity style return on their investments.
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What is Capital Budgeting?
After building the capital, the next part is making capital investment decisions 
i.e. capital budgeting. Capital budgeting is basically allotting the capital 
investment funds of the firm in the most effective manner and ensure attractive 
returns. Capital budgeting decisions mainly focus on investing in various projects. 
This includes the criteria for choosing the appropriate and right projects that will 
ensure prompt returns, growth in the long term, firm’s value, etc. There are 
several measures that give an estimate of the firm’s return over several 
investment projects. To be able to determine specific projects’ value, the three 
most commonly used methods are:
1. Payback method
2. Net Present Value method (NPV)
3. Internal Rate of Return method (IRR)
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Conclusion
With Distributed Energy, you can get investment options which work like annuities 
and diversify your portfolio by creating investments in solar projects. 
We resolve barriers and create the ideal conditions for investments. We  provide our 
Investors a hassle-free platform to invest in renewable energy projects.
Healthy Tangible Experienc
Return  Asset  ed  Team
Potential Ownership
We provide suitable  Our hard assets will give Our team draws on a wide 
investment structures for  you  another layer of and  deep range of 
solar energy as an  asset reassurance.  We also use experience not  only in the 
class with non-  correlated insurance,  project energy sector, but  also as 
and stable annuity  style contracts and other  investors across  various 
returns. mechanisms to secure the emerging markets.
 investment.
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Thank You
December 2020
Get in Touch :[email protected] or visit 
www.de.energy