IKEA to sell renewable energy in Sweden

IKEA will launch the service in home market Sweden but hopes to soon expand to all markets

IKEA will start selling renewable energy (Getty)

IKEA, the world’s biggest furniture brand, will start selling renewable energy to households in Sweden next month – and hopes to add more countries soon.

Ingka Group, the owner of most IKEA stores worldwide, said households would be able to buy affordable renewable electricity from solar and wind and track their usage through an app.

Ingka’s partner Svea Solar, which produces solar panels for IKEA, will buy the electricity on the Nordic power exchange Nord Pool and resell it without surcharge. Households will pay a fixed monthly fee plus a variable rate.

IKEA, which also sells solar panels for households in 11 markets, said those buyers would be able to track their own production in the app and sell back surplus electricity.

Jonas Carlehed, head of sustainability at IKEA Sweden, says he hopes to roll out the new STRÖMMA renewable energy offer to all markets.

"We want to make electricity from sustainable sources more accessible and affordable for all," the company said in a statement.

"IKEA wants to build the biggest renewable energy movement together with co-workers, customers and partners around the world, to help tackle climate change together."

IKEA says renewable energy is a natural progression for the company (IKEA)

Ingka said the plan was to offer electricity from solar and wind parks in five years old or less, as a way to encourage the building of more parks.

More broadly IKEA aims to be "climate positive" – reducing greenhouse gas emissions by more than is emitted by the entire IKEA value chain, from raw material production to customers’ disposal of their furniture – by 2030.

“IKEA is a home furnishing company, and we want to make it easier for more people to live a more sustainable life at home, said Bojan Stupar, Sales Manager IKEA Sweden.

“We offer smart and energy-efficient products and services that contribute to prolonging the life of products, reducing waste, saving water, and eating more healthily, as well as reducing electricity usage.

“Providing solar and wind power at a low price to more people feels like the natural next step on our sustainability journey.”