More than 100 UK SMEs have signed up to a fully funded rooftop solar scheme backed by Paragon Bank with participating businesses forecast to save an average of more than £20,000 a year on energy costs.
The initiative, launched by Paragon Bank and HDM Energies in July last year, removes upfront installation costs for businesses adopting solar power through a fully funded financing model.
Under the scheme, Paragon finances the installation of rooftop solar panels delivered by HDM Energies, while customers purchase discounted renewable electricity through a fixed-rate Power Purchase Agreement.
Paragon said the model was designed to overcome one of the biggest barriers facing SMEs looking to adopt renewable energy solutions – the upfront capital investment required.
MILLIONS SAVED
The lender said businesses signed up to the scheme are collectively forecast to save more than £58m in energy costs over the lifetime of the installations, with average projected savings of £552,380 per customer over 25 years.
Participating organisations span a wide range of sectors including farms, schools, football clubs, care homes, manufacturers, charities and shopping centres.
Paragon’s SME Lending division has so far deployed almost £5.3m of lending through the initiative.
The scheme is also forecast to help participating businesses avoid more than 45,000 tonnes of carbon emissions over the lifespan of the solar panels.
RISING ENERGY COSTS
Andy Craggs (pictured below, middle), head of Green Energy Finance at Paragon SME Lending, says: “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.”
NET ZERO
Dave Roberts, managing director at HDM Energies, adds: “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 (pictured above, left), general manager at Bridlington CYP sports and youth centre, says the installation has reduced the organisation’s energy bills to “about a third or a quarter” of previous levels.
