Foss & Co. Enters Microgrid Market with Landmark Public Transit Deal

DENVER, CO & MONTGOMERY COUNTY, MD – July 08, 2026 – In a move that signals a significant shift in the clean energy investment landscape, veteran tax credit syndicator Foss & Company announced an approximately $30 million tax equity investment in a state-of-the-art microgrid for Montgomery County, Maryland’s public transit system. The deal, its first with microgrid developer AlphaStruxure, marks the firm's strategic entry into the rapidly expanding microgrid sector. This investment is more than a financial transaction; it’s a powerful illustration of how sophisticated private capital, enabled by federal policy, is now being deployed to build the resilient, decarbonized public infrastructure of tomorrow.

The project will channel funds into an advanced, self-sufficient energy system designed to power a major transit facility and its growing fleet of electric buses. It represents a critical convergence of financial innovation and technological advancement, offering a replicable blueprint for municipalities nationwide grappling with the dual challenges of climate resilience and fleet electrification.

"Project Orchid exemplifies the kind of innovative, high-impact clean energy infrastructure we seek to support, delivering resilient, sustainable power to critical public transit operations while aiming to generate strong returns for our investors," said Bryen Alperin, partner and managing director at Foss & Company.

A New Blueprint for Resilient Public Transit

At the heart of the deal is the David F. Bone Equipment Maintenance and Transit Operation Center (EMTOC) in Derwood, Maryland. This facility is being transformed into what is slated to become the nation's largest renewable energy-powered transit depot. The microgrid is engineered not just to support, but to guarantee the operation of a future fleet of over 200 zero-emissions buses.

The technical specifications are formidable. The system integrates 4.8 megawatts of solar photovoltaic canopies with a 2-megawatt/6.9-megawatt-hour battery energy storage system. In a groundbreaking move for public transit, it will also feature a 1-megawatt electrolyzer to produce green hydrogen on-site. This makes the EMTOC the first bus depot on the East Coast capable of fueling hydrogen fuel cell electric buses (FCEBs) with locally produced, zero-carbon fuel, providing a longer-range solution for routes that are challenging for battery-electric models.

This project is a significant step up from Montgomery County's first microgrid collaboration with AlphaStruxure, the Brookville Smart Energy Bus Depot, which has been operational since 2022. The EMTOC microgrid is designed for ultimate resilience, capable of disconnecting from the utility and operating in “island mode” indefinitely. This ensures that the county’s buses—a critical public service—can continue to run and recharge even during prolonged grid outages caused by severe weather or other disruptions.

The environmental and operational benefits are substantial. The project is projected to slash the facility’s carbon emissions by 4,000 metric tons annually and generate over 6,000 megawatt-hours of clean energy per year. This directly supports Montgomery County's aggressive climate goals of achieving an 80% reduction in greenhouse gas emissions by 2027 and 100% by 2035.

The Financial Architecture of Decarbonization

This landmark project is made possible by a sophisticated financial structure that combines federal tax incentives with an innovative service model. Foss & Company's investment utilizes the Section 48 Investment Tax Credit (ITC), a powerful tool expanded under the Inflation Reduction Act (IRA) to attract private capital to clean energy projects. The ITC significantly lowers the cost of development, making projects financially viable for investors seeking both returns and tax advantages.

For Foss & Company, a firm with a 40-year history and over $11 billion deployed in tax equity, this move into the microgrid space is a calculated expansion. It diversifies their portfolio beyond traditional renewables into the critical, high-growth area of resilient infrastructure. Partnering with an established leader like AlphaStruxure de-risks this entry and positions the firm at the forefront of a new asset class.

Complementing the tax equity is AlphaStruxure’s Energy-as-a-Service (EaaS) model. As a joint venture between global energy management leader Schneider Electric and infrastructure investment giant Carlyle, AlphaStruxure designs, builds, finances, owns, and operates the entire system. Montgomery County pays for the energy as a predictable operating expense, much like a utility bill, but with guaranteed performance, cost stability, and resilience, all without any upfront capital expenditure. This EaaS model effectively transfers the financial and operational risk from the public entity to the private developer, a crucial feature that makes such ambitious projects feasible for municipalities.

"We're excited to close this transaction with Foss & Company," stated Troy Patton, general manager at AlphaStruxure. "We look forward to delivering a best-in-class microgrid solution that will serve Montgomery County's transit operations for decades to come."

From Niche to Necessity: A Replicable National Model

While the Montgomery County project is exceptional in its scale and technological scope, it is not an anomaly. Instead, it serves as a leading indicator of a nationwide trend. The demand for microgrids is surging, driven by an aging and vulnerable power grid, the increasing frequency of extreme weather events, and the colossal energy requirements of electrifying the transportation sector.

Public transit agencies, school districts, airports, and hospitals are all recognizing that simply plugging large electric fleets into the existing grid is often not a viable or resilient long-term strategy. The EMTOC project provides a holistic and replicable blueprint. It demonstrates how to integrate multiple clean energy technologies to meet complex operational needs while simultaneously achieving decarbonization and resilience goals.

The financial structure is equally important as a model. The public-private partnership, combining the EaaS model with tax equity financing, creates a powerful and scalable pathway for public entities to modernize their infrastructure without draining capital budgets. As federal incentives continue to encourage private investment in clean energy, this confluence of policy, private capital, and technological innovation is set to unlock a wave of similar projects across the country, fundamentally reshaping how we power our most critical public services.