By the PPA Funding team Last updated
Commercial solar supports a net-zero target by generating low-carbon electricity on site, which directly cuts the Scope 2 emissions tied to purchased grid power. It works best as one part of a plan that also includes energy efficiency, electrification and, where needed, a credible green electricity tariff.
On-site generation and Scope 2 emissions
A net-zero plan usually separates direct emissions from fuel you burn (Scope 1) from the emissions embedded in the electricity you buy (Scope 2). Solar attacks Scope 2 at source. Every unit generated and used on site is a unit you no longer draw from the grid, which lowers the reported carbon footprint of your purchased electricity.
This is a genuine reduction rather than an accounting offset. You are physically producing cleaner energy where you use it, which is why on-site generation carries weight with customers, investors and reporting frameworks that scrutinise how a business claims its carbon savings.
Solar as part of a wider plan
Solar is most effective when paired with reducing the demand it has to meet. Improving lighting, heating controls, insulation and equipment efficiency shrinks your total consumption first, so a smaller solar system covers a larger share of it. Adding battery storage lets you use more of your own generation rather than exporting it.
As businesses electrify heating and vehicle fleets, on-site solar becomes more valuable because it feeds that growing electrical demand with low-carbon power rather than pushing it onto the grid. A heat pump or an EV charger drawing from your own panels displaces far more carbon than the same equipment running on unmatched grid supply, so the order in which you make changes affects the result.
How green tariffs fit alongside
A green electricity tariff covers the grid power you still buy, and can form part of a net-zero approach, but the quality of these tariffs varies. On-site solar is a stronger, more defensible claim because the generation is physical and measurable at your meter, rather than a contractual attribution of renewable energy elsewhere.
Most credible plans use several tools together: reduce demand, generate on site with solar, store or shift what you can, then cover the remainder with a genuine renewable tariff and, only as a last resort, verified offsets for emissions you cannot yet remove. How you combine these in a formal net-zero claim has reporting and, potentially, tax implications, so confirm the accounting approach with your sustainability advisor or accountant.
This guide is general information, not financial or tax advice. Your circumstances determine what applies — please confirm with your accountant or advisor. Get a tailored proposal →
Frequently asked questions
Does solar alone make a business net zero?
Rarely on its own. Solar cuts the carbon of your purchased electricity, but a full net-zero plan also tackles heating, transport, efficiency and any remaining emissions. Solar is a strong, measurable component of that plan rather than a complete solution by itself.
Is on-site solar better than a green tariff for net zero?
On-site solar is generally a more defensible claim because the generation is physical and measured at your meter. A green tariff can complement it by covering the grid electricity you still buy, but the quality of such tariffs varies, so review each carefully.
Related guides
- Commercial Solar for High Energy Users
- Solar, Battery and Power Quality for Business
- Solar Monitoring and Performance Data Explained
See our funding options, commercial solar and solar by industry pages.