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Mandatory for large UK companies

Warehouse Solar for SECR Annual Reporting

Streamlined Energy and Carbon Reporting requires Scope 1+2 emissions disclosure annually. Solar PV directly improves your Scope 2 metric. Audit-ready monthly generation export feeds your SECR submission.

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Streamlined Energy and Carbon Reporting (SECR) became mandatory for large UK companies in April 2019, requiring annual disclosure of Scope 1 and Scope 2 emissions, energy consumption, and energy efficiency actions. SECR applies to companies meeting two of three thresholds: turnover >£36m, balance sheet >£18m, or >250 employees. The SECR submission forms part of the annual statutory accounts and is reviewed by auditors. For warehouse operators (whether retailer, 3PL, manufacturer, or owner-occupier), SECR drives boardroom visibility of energy and carbon performance — and solar PV is the single most effective intervention to improve the reported metrics.

How solar PV affects your SECR submission

SECR requires disclosure of Scope 1 emissions (direct, e.g. fuel combustion), Scope 2 emissions (indirect, primarily grid electricity), and total energy consumption (kWh). Solar PV directly reduces Scope 2 emissions by displacing grid-supplied electricity with on-site renewable generation. The reduction is calculated using the UK government's grid electricity emissions factor (currently around 0.211 kgCO2e/kWh for the location-based method) applied to the displaced grid electricity.

For a typical 1 MW warehouse PV install generating 920,000 kWh/year with 80% self-consumption, the Scope 2 reduction is approximately 155 tCO2e/year (location-based method). For multi-MW installs, the Scope 2 reduction can exceed 1,000 tCO2e/year — material at corporate scale. The market-based method (using contractual emissions factors) can deliver larger reductions if the residual grid electricity is on a renewable tariff.

The energy consumption metric in SECR also improves with solar PV — total grid-supplied kWh reduces, and the energy intensity ratio (kWh per £m turnover, or per square metre, or per FTE) improves correspondingly.

SECR reporting methodology and audit-ready monitoring

SECR submissions must use either location-based or market-based methodology (or both) for Scope 2 emissions calculation, in line with GHG Protocol Corporate Standard. The location-based method uses the average grid emissions factor for the geography (UK Conversion Factors published annually by DESNZ); the market-based method uses contractual emissions factors (zero for 100%-renewable tariffs).

For solar PV, the on-site generation is treated as zero-emission and reduces both methods' Scope 2 figure equivalently. The audit-ready monthly generation export from our standard monitoring platform feeds directly into SECR calculations. Our monthly export includes: total kWh generated, kWh self-consumed, kWh exported to grid (via SEG), and gross/net Scope 2 reduction calculated using current UK Conversion Factors. The export is formatted for direct ingestion by major SECR submission platforms (SECR Reporter, Greenstone, Worldfavor) and major sustainability accounting software (Watershed, Persefoni, Sphera, Sweep).

Energy efficiency actions narrative

Beyond the quantitative metrics, SECR requires a narrative description of energy efficiency actions taken during the reporting year. Solar PV installation is a flagship action that strengthens this narrative significantly. Major retailer and 3PL SECR submissions consistently highlight solar PV as the headline energy efficiency intervention.

We provide a SECR-formatted narrative paragraph for each project as part of the audit pack — including system size, generation forecast, Scope 2 reduction, capex, and implementation timeline. Companies use this paragraph in their annual report SECR section, supplemented with their own corporate context and forward commitments.

Five-year SECR trend and stakeholder pressure

SECR has been mandatory since 2019, so most large UK companies now have 6+ years of trend data. Stakeholder pressure (investors, customers, regulators) increasingly focuses on year-on-year emissions reduction. Solar PV provides a step-change improvement in Scope 2 metrics that directly demonstrates progress against stated decarbonisation targets.

For companies with published net-zero targets aligned with Science Based Targets initiative (SBTi) — increasingly common across UK retail and logistics — the SECR submission is the primary public progress report. Solar PV is typically the largest single contribution to year-on-year Scope 2 reduction in the early years of an SBTi pathway.

Common questions about SECR reporting

Does our warehouse PV install qualify for Scope 2 reduction reporting?

Yes. Solar PV is a recognised on-site renewable energy source under both location-based and market-based GHG Protocol methodologies. The kWh generated is treated as zero-emission and reduces grid-supplied kWh and associated Scope 2 emissions. We provide audit-ready monthly generation data formatted for direct SECR ingestion.

Can we use the market-based or location-based method?

Both. SECR allows either or both methodologies. Most UK companies use location-based method for compliance plus market-based method for additional disclosure. Solar PV reduces both methods' Scope 2 figures equivalently. Our monitoring platform exports reduction figures using both methods.

How does our SBTi pathway interact with warehouse solar?

Solar PV is typically the largest single contribution to year-on-year Scope 2 reduction in the early years of an SBTi pathway. Most major UK retailers and 3PLs with SBTi-aligned 1.5C-compatible targets use solar PV as the headline action in their SECR + SBTi annual disclosure.

What's included in the SECR-formatted audit pack?

PVSyst yield model with monthly generation forecast, half-hourly self-consumption profile, monthly generation export (CSV + PDF) formatted for SECR ingestion, location-based and market-based Scope 2 reduction calculations using current UK Conversion Factors, and a SECR-formatted narrative paragraph for the annual report. The pack is delivered at project handover and refreshed monthly thereafter.

Who handles SECR auditor sign-off on solar PV data?

Your statutory auditor (Big 4 or mid-tier) reviews SECR data as part of the annual audit. Our audit pack provides the underlying evidence (PVSyst model, MCS certificate, monthly generation export, methodology documentation) that the auditor needs. We respond to auditor queries directly when invited by the customer.

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