One of Scotland’s leading commercial property companies is reducing energy costs, cutting carbon emissions and gaining long-term price certainty after installing a rooftop solar system funded through a partnership between HDM Energies and Paragon Bank.
Castlecroft Group, which manages more than 200 commercial properties across Perth and Dundee, has installed an 89.28kW solar PV system at its King James VI Business Centre in Perth. The project was delivered by HDM Energies and funded by Paragon Bank through an innovative Power Purchase Agreement (PPA) model that enables businesses to access solar energy with no upfront capital investment.
The installation comprises 144 solar panels and is expected to generate over 70,000kWh of renewable electricity annually, forecast to meet around 32% of the building’s energy demand, with almost all power generated consumed on site. In its first year, Castlecroft is expected to save more than £4,500 on energy costs, with projected estimated savings of more than £139,000 over the lifetime of the agreement, as oil prices remain volatile and continue to rise.
Under the PPA model, HDM Energies owns and maintains the solar infrastructure, while Castlecroft purchases the electricity generated on site at a fixed rate of 15p per kWh for 12 years. The arrangement protects the business from future wholesale energy price volatility while delivering immediate savings.
The project is also expected to reduce carbon emissions by around 10 tonnes each year, helping Castlecroft boost the firm’s energy resilience and sustainability credentials.
A 100kWh battery storage system is also due to be installed, allowing the business to increase its use of on-site renewable energy and further reduce reliance on the grid.
Jordan Black, Managing Director, said: “Through this scheme, we’ve been able to reduce our carbon footprint immediately without significant upfront capital investment, all while delivering long-term energy cost savings and price stability.
“Sustainability has become a core part of our long-term business strategy and by investing in renewable energy, not only are we improving the EPC rating of our building, we’re also protecting the environment and building a more sustainable future for our company, our clients and our community.”
The project forms part of a growing nationwide programme delivered by HDM Energies and funded by Paragon Bank. More than 100 organisations across the UK have signed up to the model, including schools, farms, manufacturers, care homes, charities, sports facilities and retail sites. Collectively, customers are on track to save more than £58 million in energy costs.
Andy Craggs, Head of Renewable Energy Finance at Paragon SME Lending, said: “Projects like this demonstrate how innovative funding models can remove traditional barriers to investing in renewable energy. We’re proud to partner with HDM Energies to help businesses take greater control of their energy costs.”
Dave Roberts, Managing Director at HDM Energies, said: “Castlecroft is a great example of how businesses can benefit from the transition to cleaner energy without the challenge of significant upfront investment and we’re thrilled to have helped them on their journey.”
Paragon’s SME Lending division has committed almost £5.3 million to the HDM Energies programme to date, supporting organisations across a wide range of sectors to invest in cleaner, more resilient energy infrastructure.
