The real-time simulation based on the field programmable gate array (FPGA) is receiving more and more attention. However, up to now, the simulation scale for the power electronic system is not so satisfactory due to the real-time requirement and the FPGA resource limitation. This paper proposes a sub-microsecond level real-time simulation method for microgrids. The power converters are modeled with fixed-admittance models and simulated with a compact electromagnetic transients program (EMTP) algorithm. In the meanwhile, the distribution lines/cables are modeled with π-circuit models and simulated with a distributed circuit solution method, called the latency insertion method (LIM). As a result, the distribution generation (DG) systems are decoupled with each other and can be simulated in parallel. The case study shows that the proposed simulation method consumes much fewer FPGA resources compared with the traditional one. Besides, the time step can be much smaller and doesn't need to increase with the simulation scale. With these advantages, the real-time simulation of a microgrid consisting of three three-phase converters, three boost circuits and 21 three-phase lines can be achieved on the Xilinx Kintex-7 410T FPGA with a minmum time-step of 380 ns.