Ikea stops selling solar panels in UK as government signals cut in solar subsidies

UK householders seeking solar panels now need to look beyond Ikea, as the Swedish furniture-maker has stopped selling them after the government announced a cut in solar subsidies. The move comes two years after Ikea had a media-friendly national launch of the product.

Post a successful test run at its Lakeside store in Essex, Ikea decided to sell solar panels across all of its 17 stores in the UK in 2013-14, to tap growth in the then heavily-subsidised green energy market. At the time, its UK head of sustainability had said, “We know that our customers want to live more sustainably and we hope working with Hanergy [Ikea’s technology partner] to make solar panels affordable and easily available helps them do just that.”

However in November 2015, the furniture maker did not renew its contract with Hanergy – its Hong Kong-headquartered solar panel supplier. While the world’s largest furniture-maker did not cite any particular reason for the move – that came two months after the UK government announced it would reduce solar subsidies dramatically – an Ikea spokeswoman said that it would resume selling these panels by the end of 2016.

She stated, “Based on the successful roll-out [of solar] and to ensure Ikea Group has a growth plan in place for the future, we have evaluated our business model, starting in the UK. A new business model has been decided upon, which included the decision not to renew the contract with Hanergy Solar UK when their current contract ended on 1 November 2015.”

According to Solar Power Portal, UK’s leading news portal that covers the solar industry, many Chinese companies had expressed interest in supplying solar panels to Ikea. Some of the Swedish company’s initiatives to promote green energy include selling only energy-saving LED bulbs at its stores, its foundation pledging €1bn (£777m, $1.12bn) towards climate change and renewable energy, apart from installing sizeable solar systems in some of its UK stores.

As part of the government’s move to reduce subsidy, the incentive scheme for household solar power, the feed-in tariff, was closed to new applicants for the past three weeks. The scheme, however, reopened on 8 February, with 65% lower rates and a new cap on installations.

Despite the lower incentives, which has resulted in the payback period extending by another six years, the industry maintains that solar is still a good option for householders, according to The Guardian.

Ikea stops selling solar panels in UK as government signals cut in solar subsidies

IKEA U.S. Rolls Out Solar Power

(3BL/JustMeans) – Ikea U.S. recently announced plans to install a solar energy system at its Merriam, Kansas store slated to open this fall. The store is located about eight miles from Kansas City, Missouri. The 92,000-square foot solar array will contain 2,850 photovoltaic (PV) panels and will produce approximately 1,348,000 kilowatt hours (kWh) of electricity a year for the store. That is equivalent to the power needed for 128 homes, reducing 930 tons of carbon or the emissions of 196 cars. Once completed, it will be the largest rooftop solar array in Kansas. 

The solar energy system is Ikea’s 41st solar project in the U.S. The 395,000 square foot Merriam store is currently under construction on 19 acres. The store will have a geothermal component to its healing and cooling system, the second U.S. store to contain one. The other store to contain one is in the Denver, Colorado area, which opened in 2011. 

Ikea’s 40th solar power project will sit atop the 416,000 square foot Miami-Dade area store opening this summer in Sweetwater, Florida. The 178,000 square foot solar energy system consists of 4,620 PV panels and will produce about 1,738,876 kWh of electricity a year. The equivalent of the power needed for 169 homes, reducing 1,227 tons of carbon or the emissions of 256 cars.  Ikea has rooftop solar arrays on other Florida stores, including in Orlando, Tampa and Sunrise. The fourth solar project makes Ikea the largest non-utility solar owner in Florida. 

Ikea U.S. has solar power at almost 90 percent of its U.S. locations. The company is the second largest private commercial solar owner and user in the U.S. It is investing $150 million in PV systems on its U.S. store locations. In 2013, IKEA installed solar panels on eight U.S. stores.

Ikea’s efforts are gaining attention. In May, President Obama announced over 300 private and public sector commitments to reduce carbon while creating jobs by increasing solar energy deployment and energy efficiency. Ikea U.S. was listed as committing to use renewable energy generation at their new U.S. IKEA store locations. 

Solar is not the only renewable energy investment in the U.S. Ikea U.S. announced its purchase in April of a 98 MW wind farm in Hoopeston, Illinois. The purchase is IKEA Group’s largest single renewable energy investment globally. The wind farm is currently under construction and is expected to be operational by the first half of 2015. It is expected to generate up to 380 gigawatt hours (GWh) of renewable energy every year. 

The company has allocated $1.8 billion to invest in renewable energy through 2015, and has installed over 550,000 solar panels on buildings globally. Ikea owns about 157 wind turbines in Europe and Canada, with 49 more being built in the U.S. The goal is to produce at least 70 percent of its energy needs from renewable energy by 2015. By 2020, Ikea plans to produce as much renewable energy as its operations consume. Currently, solar and wind energy meets 27 percent of the electricity needed to run the company’s operations globally. 

Sources

IKEA U.S. Rolls Out Solar Power

Ikea plans largest solar array in Kansas

Ikea plans to install 2,850 solar panels on the roof of its new store opening in Merriam this fall, an array capable of generating enough electricity to power 128 homes annually.

The 92,000 square-foot rooftop array was described Wednesday as the largest in Kansas. Installation will begin as soon as the roof of the new store is completed, probably in late June.

Officials at the Swedish retailer said the solar panels will generate 1.35 million kilowatt hours of energy and reduce the store’s potential carbon dioxide emissions by 930 tons annually.

Ikea already has installed a geo-thermal component to its heating and cooling system for the 359,000 square-foot store under construction at Johnson Drive and Interstate 35.

“We are excited about furthering our sustainability commitment with solar panels on the future Merriam store,” Rob Parsons, the new store manager, said in a statement.

“As is the case with geothermal, solar energy will reduce greatly the store’s energy needs and carbon footprint as well as contribute to our vision of creating a better everyday life for many.”

Ikea contracted with SoCore Energy of Chicago to design and install its solar roof, which will begin installation next month. SoCore was described as one of the largest solar developers in the Midwest.

The firm has installed solar energy systems at 90 percent of its U.S. locations.

Ikea plans largest solar array in Kansas