Sprocket Power:
Unlocking Clean Energy for Small Businesses

The Project

Sprocket Power develops micro-grid projects to help small and medium-sized businesses decarbonize. These smaller businesses, such as auto dealers and transit providers, often lack the upfront capital to be able to pursue clean energy projects. Sprocket sought to implement an Energy Service Agreement to cover upfront equipment and site upgrade costs that pose key barriers to decarbonizing these businesses, many of which serve a public good.

The Challenge

While implementing an Energy Service Agreement would remove barriers to adoption for the businesses Sprocket partners with, offering an Energy Service Agreement would require Sprocket to access third party financing. To secure low-interest debt for their portfolio of projects, Sprocket would need to bolster its balance sheet as a borrower.

The Solution

A grant from The Clean Fight served as a corporate-level credit enhancement, improving Sprocket’s creditworthiness and enabling the company to secure a project debt facility and a Letter of Intent from NYCEEC for 24 times the size of The Clean Fight’s grant.

The Impact

The project debt facility Sprocket Power has secured will support several small projects across Long Island, including solar and storage-backed EV charging hubs, with the potential to establish public-private partnerships with local community groups or institutions.

Sprocket’s Energy Service Agreement will offer a scalable blueprint for accelerating deployment in underserved markets through flexible financing. It will also open doors for nonprofits and community organizations—often seen as less creditworthy than traditional sponsors—to access clean energy infrastructure projects alongside stacking programs and incentives. Successful implementation of this facility will position Sprocket to explore mezzanine debt options and attract larger lenders as the company scales.