IKEA has made its move into new business territory as it joins the renewable energy sector. The company has announced that it will provide a renewable energy subscription service that will supply Swedish households with solar and wind power as of September.
Subscribing to Renewable Energy
The subscription was launched in partnership with the innovative solar energy provider, Svea Solar, a company that is committed to renewable energy transition and creating a new norm for energy consumption.
IKEA and Svea Solar will source electricity from the Nord Pool European power exchange and sell it without a surcharge, making it more cost-effective for consumers. This will be supplied as a subscription service called Strömma. The project marks the second collaboration between the two companies, which are also partners in the solar panel business—selling in 11 markets.
IKEA believes the creation of the subscription service could provoke the world’s ‘biggest renewable energy movement’ as it plans to expand its service to a global consumer base. The service also supports the company’s commitment to reducing carbon dioxide equivalent (CO2e) generated by lighting, heating and cooling its premises, which currently stands at around 10 billion tonnes each year.
Jan Gardberg, New Retail Business Manager at Ingka Group—the parent company of IKEA, says, ‘We believe the future of energy is renewable and we want to make electricity from sustainable sources more accessible and affordable for all’.
Application Based Energy Insights
The payment scheme is comprised of a standard fixed fee and a variable rate that customers can monitor through a purpose-built application for the service. The plan also allows customers with IKEA solar panels the option to sell their energy back to the grid. Creating a service and a platform that allows its customers to save money and increase the overall dependence on renewable energy will support IKEA’s wider initiative to reduce the emissions of its value chain by 50% in less than ten years.
‘Our customers' use of our products account for around 20 per cent of IKEA's total climate footprint – from appliances, lighting and electronics such as speakers and so on, says Gardberg.
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