A new rooftop solar scheme backed by Paragon Bank is eliminating upfront costs for SMEs and is forecast to deliver average savings of £552,380 per customer over 25 years*. Businesses signed up to the initiative to date will also collectively avoid more than 45,000 tonnes of carbon emissions over the panels’ lifetime – equivalent to taking over 10,000 petrol cars** off the road for a year.
The scheme, launched by FTSE 250 lender Paragon Bank in partnership with HDM Energies in July last year, aims to help SMEs cut energy bills and carbon emissions with no upfront investment – the biggest barrier to adopting renewable energy sources for many businesses.
Over 100 organisations across the UK have signed up so far, with installations spanning a diverse range of sectors, including schools, farms, football clubs, manufacturers, office buildings, care homes, charities, a shopping centre and multiple other SME premises. Together, these organisations are on track to save over £58 million in energy costs, with Paragon’s SME Lending division having deployed almost £5.3 million of lending so far.
The initiative operates through a fully funded model in which Paragon finances the supply and installation of rooftop solar panels delivered by HDM Energies. HDM enters into a Power Purchase Agreement with each customer, supplying discounted, fixed‑rate renewable electricity directly to their premises, with the income from that electricity then used to repay Paragon’s funding.
This accessible model was built in partnership by both organisations as they recognised a need to unlock clean, low‑cost energy solutions for SMEs nationwide.
Andy Craggs, Head of Green Energy Finance at Paragon SME Lending, said: “Seeing SMEs save on average over half a million pounds – a huge sum of money – shows just how transformative this scheme is for SMEs facing rising energy costs. The strong uptake across diverse sectors such as education, agriculture and manufacturing shows the wide appeal for simple, predictable and long‑term clean‑energy solutions. As a lender working with 16,000 UK SMEs, we’re proud to spearhead this initiative with HDM Energies to help businesses protect their energy and financial resilience.”
Dave Roberts, Managing Director at HDM Energies, added: “This scheme was designed to remove the barriers that stop SMEs from adopting solar. With no capital outlay, immediate cost savings and long‑term carbon reduction, it’s clear why so many organisations are opting to join the programme. Our partnership with Paragon, a FTSE 250 lender with a strong track record and robust capital backing, enables us to deploy high‑quality solar systems at scale, supporting significantly more businesses on their journey to net zero.”
Damien Grant, general manager at sports and youth centre Bridlington CYP, added: “For a project of this scale and the difference it’s making for us, the process couldn’t have been easier. Since the solar panels have been installed, our bills are about a third or a quarter of what they were before. Any savings we make get piled back into the club, so it supports the local community.”
To find out more about Paragon Bank’s SME Lending offering, visit https://www.paragonbank.co.uk/business/asset-finance.
* Cost‑saving projections are based on HDM Energies’ modelling, which applies a 5% assumed annual increase in grid electricity prices over the 25‑year period. This uplift is slightly below the UK’s long‑term average annual energy price inflation of approximately 6–7% over the past decade. Calculations compare the compounded cost of grid electricity at the assumed annual uplift with the fixed discounted Power Purchase Agreement (PPA) rate supplied through the scheme, as reflected in HDM’s savings model.
**Based on conversion factors from the U.S. Environmental Protection Agency’s Greenhouse Gas Equivalencies Calculator, which translates emissions into everyday comparisons such as passenger vehicles driven for one year. Using the EPA’s standardised per‑vehicle annual emissions factor, 25,000 tonnes of CO₂ is approximately equal to the annual emissions of around 5,831 petrol cars.