To better understand how businesses can reduce Scope 2 emissions in practical terms, we spoke with Lochie Burke, Co-founder and CEO of NetNada.
Smart has partnered with NetNada to develop Smart Zero, our new integrated energy and carbon accounting platform, so it’s safe to say we consider Lochie the foremost authority on this subject!
His view is clear: when the conditions are right, rooftop solar is the most effective solution available. For businesses with suitable roof space and infrastructure, it offers a rare combination of environmental impact and financial return.
As Lochie explains, rooftop solar doesn’t just reduce emissions, it does so in a way that is highly cost-effective and delivers strong ROI. Compared to alternatives like purchasing green power or carbon-neutral energy (which often come at a premium), onsite solar stands out as the most efficient pathway, if it’s feasible for the site.
“If a business has the ability to install solar… this is the best thing they can possibly do.”
Scope 2 emissions are the indirect emissions generated from the electricity a business purchases and consumes.
In Australia, grid electricity still relies heavily on coal and gas. This means every kilowatt-hour drawn from the grid carries an emissions footprint, making electricity one of the largest contributors to a company’s carbon profile.
Rooftop solar changes this dynamic by replacing grid electricity with clean, onsite generation, directly reducing these emissions at the source.
At its core, rooftop solar reduces emissions by generating electricity where it’s used. Every unit of solar energy produced is one less unit drawn from the grid, cutting both emissions and energy costs.
This impact becomes even more significant for businesses that operate during daylight hours. Because they can consume solar energy as it’s generated, they maximise both financial and environmental benefits.
Lochie notes that these businesses often see consistently strong results, with emissions reductions frequently exceeding 50%.
“They get the benefit of consuming the energy right there and then… this is where we see consistently over 50% reduction.”
Key advantages include:
While results vary depending on the site, real-world data provides a useful benchmark.
According to NetNada’s data, rooftop solar can typically reduce 50–75% of a business’s Scope 2 emissions. In some cases, particularly sites with lower overall energy demand, solar can offset nearly all electricity-related emissions.
However, the level of impact depends on how well a business’s energy profile aligns with solar generation.
For example:
As Lochie puts it, solar is often the foundation—but not always the complete solution.
Several factors determine how much value a business can get from rooftop solar:
Rather than a “set and forget” solution, solar performs best when it’s actively managed and optimised over time.
One of the key takeaways from our discussion is that solar isn’t always a one-size-fits-all solution.
For some businesses, particularly those with large roofs and moderate energy demand, rooftop solar alone can deliver substantial, sometimes near-total Scope 2 reductions.
For others, especially energy-intensive operations, it works best as part of a broader strategy that may include:
Beyond reducing emissions, rooftop solar also makes them easier to measure.
Modern systems generate financial-grade data, allowing businesses to track exactly how much energy is produced and how much grid electricity is avoided.
Lochie emphasises that this level of accuracy is a major advantage:
“It makes reporting and carbon accounting extremely easy, extremely accurate, and most importantly, extremely auditable.”
With the right monitoring systems in place, businesses can confidently report on emissions reductions for ESG goals, compliance, and stakeholder transparency.
Rooftop solar is more than a sustainability initiative; it’s a strategic business decision.
For medium to large businesses, it offers one of the most effective and cost-efficient ways to reduce Scope 2 emissions, particularly when operations align with solar generation.
Just as importantly, it highlights a broader shift in how businesses approach sustainability. As energy prices rise, solutions like rooftop solar demonstrate that reducing emissions and improving financial performance can go hand in hand.
As Lochie points out, this alignment is becoming increasingly important:
“Sustainability can line up with strong business performance… the impact on the bottom line also deserves recognition.”