What SECR is and who reports
The 2018 Regulations apply to financial years starting on or after 1 April 2019 (GOV.UK).
| Organisation | What it reports |
|---|---|
| Quoted companies | Global greenhouse gas emissions, an intensity ratio, total global energy use and energy efficiency action, with the methodology |
| Large unquoted companies and large LLPs | UK energy use (at least gas, electricity and transport fuel) and the associated emissions, an intensity ratio and energy efficiency action |
| Low energy users (40 MWh or less in the period) | A statement that the detail is not disclosed for that reason |
"Large" uses the Companies Act test: two or more of turnover, balance sheet and employees above the medium-sized limits. The 2019 guidance quotes the limits then in force; for accounting periods starting on or after 6 April 2025 they are £54 million turnover, £27 million balance sheet total and 250 employees (GOV.UK). Check with your accountant which applies to your year.
Scope 2 emissions explained
| Scope | What it covers | Business example |
|---|---|---|
| Scope 1 | Direct emissions from sources you own or control | Gas boilers, company vehicles, process fuel |
| Scope 2 | Emissions from your consumption of purchased electricity, heat, steam and cooling | The electricity you buy from the grid |
| Scope 3 | Other indirect emissions from your actions, at sources you don't own or control, not counted in scope 2 | Business travel, purchased goods, waste |
The guidance describes scope 2 as indirect emissions "that are a consequence of your organisation's activities but which occur at sources you do not own or control" (GOV.UK). Emissions are calculated with the government's conversion factors, updated each year (GOV.UK).
See how much of your scope 2 solar could replace: book a free site survey.
Book a free site surveyHow on-site solar changes reported emissions
- Less purchased electricity. Each unit generated and used on site is a unit not bought, so scope 2 falls
- State your generation. The guidance asks for the MWh generated from owned or controlled sources, and whether on-site or off-site
- Exports. Where own-generated renewable electricity is exported, state how much and whether it is backed by REGOs
- Intensity ratio. With the same activity and less purchased power, your emissions per unit of output fall too
- Energy efficiency action. Installing solar is an action you can describe in the narrative
The guidance's worked example shows a company reporting electricity purchased for its own use, renewable electricity generated on site and electricity exported, as separate lines (GOV.UK).
Location-based and market-based reporting
The guidance encourages location-based grid-average emission factors for electricity, including hour-by-hour factors where available. Where an organisation has contracted renewable electricity, through PPAs or REGOs, and wants to show a lower figure, it can present a market-based figure, recommended alongside the location-based one, specifying "whether the renewable energy is additional, subsidised and supplied directly, including on-site generation, or through a third party" (GOV.UK).
On-site solar is the simplest case: under either method, the electricity you generate and use is electricity you didn't buy. A green tariff, by contrast, changes the market-based figure but not the location-based one. See renewable energy for business.
From report to action
If your SECR figures show electricity is a large share of your emissions, a survey of your main sites shows how much of it solar could replace. Twelve months of half-hourly data sizes the system. See also ESOS and carbon reduction plans.
Sources
The GOV.UK environmental reporting guidelines (SECR, March 2019), the Companies House accounts guidance for the 2025 size thresholds and the conversion factors collection were read on 2 November 2026.
- GOV.UK: Environmental reporting guidelines, including Streamlined Energy and Carbon Reporting (March 2019)
- GOV.UK: Life of a company, accounts (company size thresholds from 6 April 2025)
- GOV.UK: Government conversion factors for company reporting of greenhouse gas emissions
General information from government guidance, not reporting or accounting advice.