HDM Energies & Paragon Bank Back UK SMEs with £100 Million Solar Pact

Image Credit: HDM Energies

In a move that could reshape how small and mid-sized businesses access renewable energy, HDM Energies has forged a strategic partnership with FTSE 250 lender Paragon Bank, unlocking up to £100 million in funding to support rooftop solar installations across the UK.

But this isn’t just another clean energy headline. The deal introduces what the partners are calling a first-of-its-kind Power Purchase Agreement (PPA) in the UK’s asset finance sector, specifically tailored for SMEs—a segment often overlooked in the green transition.

Here’s how it works: under the new model, businesses can install rooftop solar panels with zero upfront costs. Instead, they commit to buying the solar energy generated on-site at a discounted, fixed rate over a long-term agreement, anywhere from 10 to 25 years. Everything from the initial site survey to installation, maintenance, and ongoing support is handled by HDM Energies, working in tandem with its sister company, HDM Solar, which supplies the hardware.

The result? Businesses gain access to immediate cost savings on electricity, predictable energy pricing over decades, and the opportunity to export surplus energy back to the National Grid, all without capital expenditure or the typical operational burdens.

HDM’s Rogers described the scheme as a game-changer, particularly for a market “underserved by traditional energy providers.” He emphasised the value this model delivers through affordability, convenience, and sustained support across the system’s entire lifecycle.

From the financier’s perspective, Paragon Bank sees the initiative as a signpost for a new era in green lending. Andy Craggs, Head of Green Energy Finance for SME Lending, stated that the partnership reflects “growing demand for clean energy solutions that deliver both environmental impact and financial return.”

More than just a funding vehicle, the PPA structure signals a broader evolution in asset finance, from short-term transactional loans to long-horizon partnerships rooted in sustainability, predictability, and alignment with the UK’s national net zero ambitions.

"HDM Energies and Paragon Bank launch £100m solar finance scheme" was originally created and published by Leasing Life, a GlobalData-owned brand.