Emissions of electricity generated by owned solar panels (or other renewable electricity sources)

Greenhouse Gas Protocol
1 
Hello, 

I have a question related to GHG emissions accounting of electricity generated by solar panels (or other renewable electricity sources) owned by the reporting company. How to account for the market-based and location-based Scope 2 emissions for each of the following scenarios?
	○ The company consumes the green electricity in own operations
	○ The green electricity is sold to the grid
	○ The green electricity is sold as RECs to a 3rd party
It seems that the emissions are 0 for each of the 3 scenarios since this is renewable electricity and if sold to a third party, this should be accounted for in the Scope 2 emissions of the third party. However, table 6.1 from the GHG Protocol Scope 2 Guidance says to use location-based and market-based emission factor hierarchy for scope 2 emissions of certificates sold to a third-party. 

Moreover, is it mandatory to report the emissions from the production of solar panels in Scope 3 emissions related to purchased goods and services?

Thank you for your help!

2

Hi,

As I understand it, the third party should report the electricity purchased from the reporting company’s solar panels under scope 2, marked as ‘green’. Market-based emissions would be zero, while location-based emissions should reflect the regional or national average. Supporting evidence (e.g. a power purchase agreement) should be available.

The reporting company, on the other hand, doesn’t need to report anything related to this electricity production — not in scope 2, nor in scope 3 (purchased goods and services).

Kind regards
Jelte Liekens