Power to the SMEs: How finance is flipping the energy system on its head

HDM Energies highlighted how innovative finance is helping UK SMEs regain control of their energy costs at the Finance & Leasing Association’s “Impact and Future of Finance” event in London this week.

Founded by Daniel Rogers in 2022, HDM Energies exists to change the narrative on renewable energy company and to tackle one of the UK economy’s most pressing structural challenges: Access to low-cost energy.

“Low-cost energy is a fundamental building block of any prosperous economy,” said Dan, Founder and Director at HDM Energies. “Right now, many UK SMEs are locked out of it - not because solutions don’t exist but because the system isn’t built for them.”

Electricity demand in the UK is expected to rise significantly by the end of the decade, while grid charges and infrastructure costs continue to increase. At the same time, SMEs face limited buying power and fewer options than both domestic consumers and large industrial users.

The result is a growing exposure to volatile energy markets, with businesses left vulnerable to external shocks from geopolitical conflict to wholesale price spikes.

The UK’s continued reliance on centralised energy generation and imported electricity at peak demand further increases this risk, creating what HDM describes as a “single point of failure” in the system.

HDM Energies proudly focuses on the underserved segment of the market: SMEs that need energy resilience but lack influence and access to flexible, scalable solutions.

HDM Energies works with a wide range of organisations including manufacturers, care homes, schools, farms and logistics operators who are all facing the same underlying challenge: Trying to manage rising and unpredictable energy costs while protecting cashflow.

“We’re on the side of SMEs,” Dan added. “These are the businesses keeping the UK’s economy moving but they’ve been left with the fewest options when it comes to energy.”

Through its partnership with Paragon Bank Group, HDM Energies has built a model that removes the biggest barrier to adoption - upfront cost of the solar system.

Paragon provides the funding facility that enables HDM Energies to design, install and maintain rooftop solar systems at no capital expense to the customer. Businesses then purchase the electricity that they consume via their solar and battery system, topped up with grid electricity when needed. This is all made possible through a long-term Power Purchase Agreement (PPA), delivering lower electricity bills (around 30% less) and fixed-rate energy for 10–25 years.

“Paragon has fundamentally changed what’s possible for us,” said Dan. “Their belief in our model has unlocked the ability to scale and to get cost relief to more businesses, faster. This is what banks should be doing more of.”

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.”

This powerful partnership includes a funding facility of up to £100 million, with more than £5 million already deployed, and HDM Energies set to scale rapidly across the UK.

For many organisations, the impact goes beyond savings. In fact, it’s about survival.

At Bridlington Centre for Young People, a sports and youth centre in East Yorkshire, solar has reduced electricity costs dramatically from around 40p per kWh to approximately 16p per kWh, with up to 94% of energy now covered on-site. That’s a saving of £55,000 per year. The result for them has been immediate financial relief and the ability to reinvest in community services.

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 have reduced by one third of what they were before. Any savings we make get piled back into the club, so it supports the local community.”

“This is about taking back control,” said Dan. “When businesses have certainty over their costs, they can plan, invest and grow. Without that, they’re just trying to survive.”

Demand for this model is accelerating rapidly with HDM Energies recently recording £4 million in solar installations signed in a single week - around ten times its previous level - as businesses respond to renewed global energy uncertainty. Alongside this,

Collectively, organisations in the scheme are on track to save the planet more than 45,000 tonnes of carbon emissions, while building resilience at a local level.

For HDM, the story goes beyond solar. “We’re effectively putting a power station on a business’s roof,” said Dan. “We’re in this for the right reasons. This is about energy independence and giving businesses the ability to generate their own power and reduce reliance on a system that isn’t working for them.”