What is a solar Power Purchase Agreement?

For years, businesses have faced the same challenge. Energy costs continue to fluctuate, sustainability expectations are increasing and investing in renewable energy often requires significant capital that could be better spent elsewhere.

That's left many organisations feeling stuck. They know they need a better energy strategy but they're either not prepared or able to take on the cost, complexity or risk of owning and managing energy infrastructure themselves.

At HDM Energy, we believe there’s a better way.

Through our fully funded Power Purchase Agreement (PPA) model, businesses can benefit from on-site solar generation, lower and more predictable energy costs along with greater control over their energy future, without significant upfront investment.

It's all part of our mission to deliver energy without the uncertainty.

A Power Purchase Agreement (PPA) allows a business to use electricity generated from a solar system installed on their site without purchasing the system outright.

Instead of funding, owning and maintaining the equipment, energy customers simply agree to purchase the electricity generated by the system at a fixed agreed rate.

The result is straightforward:

• No upfront cost to the customer
• Lower and more predictable energy costs
• Reduced reliance on grid electricity and less risk of facing energy volatility
• Ongoing maintenance and system monitoring included
• Immediate progress towards sustainability goals

In simple terms, you get the benefits of solar without the burden of owning and managing the asset yourself.

While businesses aren't covered by the domestic energy price cap, recent market volatility highlights how exposed many organisations remain to fluctuating electricity costs.

Businesses purchasing electricity generated through a HDM Energy on-site solar Power Purchase Agreement (PPA) can fix their electricity rate from around 18p/kWh (subject to eligibility checks and site assessment). Actual pricing will vary depending on site assessment, consumption patterns, contract terms and market conditions.

By generating electricity on-site and agreeing a long-term purchase rate, organisations can gain greater predictability over future energy costs while reducing their reliance on grid electricity and exposure to market volatility.

Most businesses are not looking for solar panels and battery storage. They're looking for lower bills or energy certainty.

The UK's energy system remains vulnerable to price volatility, market changes and increasing pressure on organisations to improve sustainability performance.

That's why more businesses are choosing energy solutions that reduce uncertainty rather than increase it.

With an HDM Energy PPA, customers benefit from:

• Greater predictability over energy costs
• Reduced exposure to grid electricity prices
• Improved energy resilience
• Lower operational carbon emissions
• Improved EPC rating
• Potential support for future electrification and EV charging
• Having one energy partner responsible for funding, installation, maintenance and support throughout the project lifecycle

It's a simpler way to take greater control of your energy future.

Our PPA model is particularly attractive for organisations that consume significant amounts of electricity during the day and during peak hours (4pm – 7pm) including:

• Manufacturing businesses
• Farms and agricultural operations
• Schools and education settings
• Warehousing and logistics facilities
• Commercial property owners
• Multi-site SMEs

For many organisations, the question is no longer whether solar makes sense. It's whether there is a low-risk way to access it. A PPA provides exactly that.

Many people assume PPAs are complicated. The reality is much simpler.

Access to funding remains one of the biggest barriers preventing businesses from investing in renewable energy infrastructure.

To help overcome that challenge, HDM Energy has secured a pioneering £100 million funding partnership with Paragon Bank.

The facility enables us to deliver fully funded energy solutions at scale, helping more businesses access lower-cost renewable energy without tying up valuable capital.

It's the funding mechanism that underpins our PPA offering and supports our wider mission to make smarter, more resilient energy systems accessible to more organisations across the UK.

1. We design your energy system around your business

We assess your site, roof space and energy consumption to create a solar solution tailored to your specific requirements.

This isn't an off-the-shelf package. It's designed around how your organisation actually uses energy.

2. We fund and install the system

HDM Energy funds the solar equipment, installation and commissioning.

That means eligible businesses can gain access to renewable energy infrastructure without making a significant upfront capital investment.

3. You use the energy it generates

Once operational, the system generates electricity on-site, reducing the amount of power you need to purchase from the grid.

You simply pay the agreed PPA rate for the energy you consume.

4. We keep it performing

Unlike purchasing a solar system outright, you're not left managing the asset alone.

HDM Energy monitors, manages and maintains the system throughout the agreement, helping ensure it continues performing effectively for years to come.

5. You have options at the end

One of the most overlooked benefits of HDM Energy's PPA model is its flexibility.

At the end of the agreement term, customers can:

• Purchase the system for £1
• Extend their agreement
• Agree a new PPA
• Discuss system removal if circumstances have changed

We think it’s important to give our customers options, not limitations.

Alongside our Solar PPA offering, HDM Energy also provides a combined solar and grid tariff, delivered in partnership with British Gas.

Fixed Solar Saver combines our fully-funded solar solution, together with 100% renewable energy from the grid. This is combined into one simple bill from British Gas, helping businesses achieve even greater predictability and control over future energy costs.

For organisations seeking a lower-risk route to renewable energy, it provides another practical way to reduce exposure to market volatility while benefiting from on-site generation.

Register your interest here.

Unlike the traditional approach to solar, where businesses have to invest significant capital and then wait years to recover the cost, HDM Energy has turned that model on its head. We fund the infrastructure, we design it, we install it and maintain it throughout the agreement.

Our customers then benefit from lower-cost, renewable and more predictable energy from day one.

That's why we're proud to be the trusted energy systems partner for organisations looking to build a smarter energy future.