By the PPA Funding team Last updated
Solar directly cuts your Scope 2 emissions — those from the electricity you buy — by generating clean power on site instead. That gives a clear, measurable reduction you can report under frameworks like SECR, and a genuine story for ESG and tender requirements.
What Scope 2 means
Emissions are grouped into scopes. Scope 2 covers the indirect emissions from the electricity your business purchases. Because on-site solar replaces grid power with zero-carbon generation, it reduces Scope 2 emissions directly and verifiably.
Reporting and compliance
Larger UK companies report energy and carbon under SECR, and many face ESG expectations from customers, investors and tenders. On-site renewable generation is one of the clearest, most auditable ways to show real progress rather than offsetting on paper.
A story worth telling
Beyond compliance, visible on-site solar demonstrates genuine action. It supports bids, strengthens your brand, and increasingly helps win and keep business with sustainability-minded customers.
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 self-generated solar count towards our carbon reduction?
Yes. Electricity you generate and use on site displaces grid power, directly reducing your reported Scope 2 emissions — a real, measurable reduction.
Will solar help with SECR or tender requirements?
It provides clear, auditable evidence of emissions reduction and genuine on-site renewables, which supports SECR reporting and the sustainability criteria now common in tenders.
Related guides
- Battery storage or solar first — which does your business need?
- What size solar system does your business need?
- Solar for leasehold and tenanted commercial property
See our funding options, commercial solar and solar by industry pages.