£100 Million Solar Pact: A New Era for UK SMEs

In a step that could transform the way small and mid-sized businesses access renewable energy, FTSE 250 lender Paragon Bank has partnered with HDM Energies to provide up to £100 million in funding to speed up the UK’s ambitious drive towards net zero through rooftop solar and to help reduce energy costs for SMEs. 

Often overlooked by traditional energy providers, 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. 

The simple and flexible scheme, originally created and published by Leasing Life, a Global Data owned brand, allows businesses, even those with modest roof space, to access rooftop solar with no upfront costs and benefit from significantly reduced, fixed-rate energy prices over a 10–25-year term.

This will eliminate cost volatility and deliver immediate savings. 

Under the PPA created by HDM and supported by Paragon, SME customers will have a site survey conducted by HDM Energies, who will then fund, supply, install and maintain the solar energy system, making sure that there’s optimal on-site energy generation throughout the life of the contract.
With this new model, businesses can install rooftop solar panels with no upfront costs. Instead, they agree to 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. 

HDM Energies works alongside its sister company HDM Solar which supplies the hardware to carry out everything from the initial site survey to installation, maintenance, and ongoing support. 

The key element in all this is that businesses only pay for the solar energy they consume and at a discounted and predictable rate, throughout the duration of the agreement. They will benefit from lower energy costs from day one. Any excess energy that isn’t used onsite is stored and exported to the National Grid. This in turn helps to supply other businesses with clean energy during periods of peak demand and supports wider energy resilience. 

Not only will these businesses benefit from immediate cost savings with no capital expenditure, but they will not have to deal with the typical operational burdens. 

HDM Energies has created a custom finance option, showing how Paragon Bank is flexible and able to offer funding that really helps small and medium-sized businesses.

Dan Rogers, Founder of HDM Energies has defined the scheme as a meaningful change, particularly for a market underserved by traditional energy providers. He emphasised the value this model delivers through affordability, convenience, and continual support across the system’s whole lifecycle.
Dan Rogers, said: 

“This is a major milestone in our journey to 2.5GW of rooftop solar by 2030 and partnering with Paragon Bank adds a strong layer of confidence for our customers. Since founding HDM in 2022, our mission has been to empower small and medium-sized businesses with access to rooftop solar without the burden of upfront costs.

The economics of solar have never been more advantageous, and with funding secured, trusted installation partners, a robust team and premium products supplied by our sister company HDM Solar (Wholesale), the UK’s fastest-growing solar distribution business, we are well positioned to scale deployment and deliver real value to businesses nationwide.”

HDM Energies was founded in 2022 and is a purpose-driven clean energy company committed to making rooftop solar attainable for UK SMEs. It’s fully funded solar model can help businesses lower their energy bills and carbon emissions without any upfront investment. HDM’s ambitious plan to install 2.5 gigawatts of rooftop solar by 2030 will help small businesses cut their electricity bills by up to 40%, support EV charging, and even make extra money by offering public charging services.

HDM Energies is part of the HDM group, alongside HDM Solar (wholesale) which is the fastest growing renewables distribution business in the UK. HDM Energies’ integrated approach gives them direct access to top-quality solar products at competitive prices and a trusted network of installers across the country. This means customers get good-quality equipment at fair prices and a smooth, professional service from the first consultation to post-installation support.

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

The PPA structure is not just a funding vehicle it also signals a wider evolution in asset finance, from the more commonly used short-term transactional loans to longer-term partnerships grounded in sustainability, predictability, and alignment with the UK’s national net zero ambitions. 
Andy Craggs, said: 

“Finding a way to unlock clean sustainable energy in the SME space is essential for the UK, and so Paragon is proud to have partnered with HDM Energies; a business leading the way in the clean energy transition.

Their work is already delivering substantial commercial benefits, providing solar solutions to a wide range of sectors including manufacturing, leisure and hospitality, education, and community organisations. These installations are not only helping businesses meet their sustainability targets but are also generating immediate and tangible cost savings. This partnership is a powerful example of how net zero strategies can drive real business advantage, and we see significant opportunities for growth, innovation, and long-term value with this type of product across multiple sectors.”

Paragon Bank’s SME Lending team helps small and medium-sized businesses across the UK by providing customised finance solutions that support their growth, investment, and innovation.

In the first half of the 2025 financial year, new lending by the division rose by 7.3% compared to the same period last year. The total value of SME loans grew by 17.2% to £1.9 billion, showing strong demand and Paragon’s growing presence in the market.

Paragon provides a broad selection of asset finance and commercial loan options, focusing on building strong relationships with its customers. As part of a FTSE 250 banking group, it has the backing and stability to support businesses across many industries, including construction, manufacturing, agriculture, and transport.

In 2024, Paragon strengthened its commitment to sustainability by expanding its green lending to support eco-friendly technologies. This includes financing for solar panels, heat pumps, EV charging infrastructure, modular building pods, LED lighting, and electric warehouse equipment all of which can help small businesses, and the wider economy move toward cleaner, more energy-efficient operations.