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.

What SBTi validation demands

The Science Based Targets initiative does more than record a net-zero ambition — it validates whether your target is genuinely aligned with climate science, typically a 1.5°C pathway. Once validated, the commitment is not static: you are held to year-on-year reductions against a fixed base year, and progress is reviewed rather than self-declared. That is a materially higher bar than most voluntary pledges, and it reshapes what counts as a credible lever. Loosely worded renewable intentions don't survive validation; a contracted, metered emissions cut does.

Why on-site solar is a clean SBTi lever

Scope 2 — purchased electricity — is usually the quickest part of a footprint to decarbonise, and an on-site PPA attacks it head-on. Where the contract carries a REGO transfer, the renewable attribute is formally assigned to your consumption, so the reduction holds up under the market-based accounting SBTi expects. Better still, a PPA repeats the same cut every year across its term — exactly the durable, recurring reduction a science-based trajectory relies on, not a one-off dip that reverses the moment a green tariff lapses.

Keeping the target on track

A validated target is a multi-year obligation, so treat the PPA as a managed contribution rather than a signed-and-shelved box.

• Set a 1.5°C-aligned target and submit it to SBTi for validation.
• Name the PPA as your Scope 2 lever, with a REGO transfer securing the full renewable claim.
• Reconcile contracted against delivered renewable kWh every year.
• Re-baseline when acquisitions or growth shift your absolute emissions profile.

Sizing the contribution

The reduction only counts for what the array actually generates, so size it against real load before folding it into the target. Our generation calculator yields a defensible annual kWh figure, specialist funders can structure the REGO transfer that makes the Scope 2 claim watertight, and the financing overview explains why the zero-capital route lets you commit to the reduction without a capital sanction dragging on the timeline.

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.