HDM Energies and Paragon Bank launch £100m solar finance scheme
HDM Energies has announced a strategic partnership with FTSE 250 lender Paragon Bank, which will unlock up to £100 million in funding to support rooftop solar installations for UK small and medium-sized enterprises (SMEs).
The agreement marks what the two companies describe as a first in the UK asset finance sector: a Power Purchase Agreement (PPA) tailored for SMEs. Backed by Paragon Bank, the facility enables businesses to install rooftop solar panels at no upfront cost, while accessing discounted, fixed-rate energy prices over terms of 10 to 25 years.
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“This is a major milestone in our journey to 2.5GW of rooftop solar by 2030,” said Dan Rogers, founder of HDM Energies, who described the partnership as adding “a strong layer of confidence for our customers”.
The scheme includes a full site survey, with HDM Energies funding, installing and maintaining the solar system throughout the contract period. Customers pay only for the solar energy they use, at a predictable rate, and can benefit from lower energy costs from day one. Surplus energy not consumed on-site is exported to the National Grid.
Rogers said the offering removes the burden of capital expenditure and addresses a market “underserved by traditional energy providers”. He added that HDM’s model was designed to deliver “real value to businesses nationwide”, citing support from installation partners and sister company HDM Solar, which supplies the hardware.
Andy Craggs, Head of Green Energy Finance SME Lending at Paragon Bank, said the partnership reflects growing demand for clean energy solutions that offer both environmental and financial returns. “Finding a way to unlock clean sustainable energy in the SME space is essential for the UK,” he said, adding that HDM’s work is already generating “immediate and tangible cost savings” across a range of sectors including manufacturing, education, and hospitality.
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By GlobalDataThe PPA model, both firms argue, signals a shift in asset finance — from transactional lending to long-term, impact-driven partnerships aligned with national net zero goals.
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