Compliance

SBTi Targets and Solar PPAs

Science Based Targets initiative validation requires year-on-year emissions reduction. A solar PPA with REGO transfer delivers measurable, audited Scope 2 cuts.

What this means

Science Based Targets initiative (SBTi) validation requires year-on-year emissions reduction. A solar PPA with REGO transfer delivers measurable, audited Scope 2 cuts — the gold standard for SBTi-validated targets.

Actions to take

• Set 1.5°C-aligned target and submit for SBTi validation.
• Identify PPA as Scope 2 reduction lever (with REGO transfer for full claim).
• Track contracted vs delivered renewable kWh annually.
• Re-baseline if growth changes absolute emissions profile.

How PPA delivery fits

A solar PPA delivers measurable, audited renewable kWh from a known commissioning date — exactly the kind of evidence compliance frameworks want. The contract underpins the claim; the M&V annex provides the measurement.

What to negotiate into the PPA

• REGO certificate transfer (essential for market-based claims).
• Reporting cadence and format aligned with your compliance cycle.
• Audit trail support from provider (data feeds, certifications).
• Performance ratio guarantee with make-good if generation falls short.

FAQs

SBTi Targets and Solar PPAs FAQs

Can a solar PPA on its own deliver compliance?

Not on its own — but it's typically the highest-impact single lever, especially for MEES and Scope 2. Combine PPA with LED + insulation + heat-pump for full compliance pathways.

How long before compliance deadline should I sign a PPA?

12-18 months minimum. PPA contracts take 6-12 months to sign and build. Add 3-6 months for measurement and verification before the deadline assessment.

Do PPAs always include REGO transfer?

Most do — but it must be explicit in the contract. Some standardised retail-PPA structures don't transfer REGOs by default; specifically negotiate this if you need the green claim.