In 2016, IKEA started selling solar panels online and at three UK stores in its second attempt at the market but later exited in 2019.
Why did that happen, and what are the best available alternatives?
IKEA solar panels were initially available online or at IKEA stores in Birmingham, Glasgow and Lakeside before becoming available in all UK stores.
The move involved a new partnership with Solar Century after the furniture retailer ended its deal with Chinese company Hanergy months earlier.
However, the launch only lasted a few years and ended with the end of the Feed-In Tariff (FIT) scheme in March 2019.
Quick Takeaways:
- IKEA first sold solar panels in the UK in 2013 but ended the offer in 2015.
- IKEA relaunched with London-based Solarcentury in 2016 but exited the market in 2019.
- The end of the Feed-In Tariff scheme was the main reason why IKEA exited the UK solar market.
When Did IKEA Enter the UK Solar Panels Market?
IKEA entered the UK domestic solar panel market in 2013 after a successful pilot project where it sold one PV system almost every day at a Lakeside store in Essex.
The company has always been committed to ensuring its operations and customers live sustainably.
The retailer initially partnered with Hanergy, a Hong Kong-headquartered supplier, to make solar panels affordable and easily available to customers.
You could access a range of solar panel packages at all 17 of IKEA’s UK stores, including a decent-sized, fully installed system for only £5,700.
Those signing up after an in-store consultation paid a refundable £250 deposit. A surveyor from Hanergy, which provided the service on IKEA’s behalf, would then visit your house.
They would check your energy rating and roof and advise on additional costs so you can decide whether to proceed with the installation or withdraw.
Why Did IKEA Drop Hanergy as a Solar Panels Supplier?
According to the Financial Times, IKEA ended its domestic solar panel supply relationship with Hanergy due to concerns about the supplier’s business model and going in a new direction. Hanergy only sold thin film solar panels, which did not have much demand in the market.
The new direction included the decision not to renew the contract and reviewing the solar market to determine how best to keep up with industry developments and different technologies.
In addition, Hanergy was also under investigation by Hong Kong’s market regulator, and its value had collapsed amid concerns about its accounting and reliance on sales to related parties like IKEA.
IKEA later hinted at incorporating complementary technologies like battery storage and solar thermal in its relaunch and comparing different suppliers to determine who can provide the best offer for its customers.
When Did IKEA Relaunch?
IKEA relaunched in April 2016 under a new partnership with London-based Solarcentury. The Guardian reports that the new deal allowed the retailer’s employees to handle solar panel sales in stores and offer monocrystalline and polycrystalline panels with better efficiency and aesthetics than the thin film panels sold by Hanergy.
All IKEA stores had a “Solar Shop” where staff could offer advice and a provisional quote. After that, they would hand the customer over to Solarcentury. The UK solar specialist would then take the customer through the design and installation process.
In 2017, IKEA and Solarcentury launched a home battery storage solution that customers could purchase as a standalone product or part of a solar panel and battery system bundle.
According to PV Magazine, customers could buy the standalone battery for £3,000, while bundle prices started at £6,925 depending on the solar array size and accompanying battery.
Why Did IKEA Exit the UK Solar Panels Market?
IKEA’s decision to exit the UK solar market coincided with the end of the Feed-In Tariffs (FITs) scheme, which closed in full to new applicants after 31 March 2019.
The tariff scheme offered an incentive to support the widespread adoption of proven small-scale, low-carbon electricity-generating technologies. Under the scheme, homeowners receive payments for the electricity generated by eligible installed systems like solar panels.
IKEA ended its solar panel offering in the UK on 1 March 2019, explaining that the end of the Feed-In Tariff scheme made solar panels less financially sensible for its customers.
From the retailer’s point of view, the commercial offer was unviable until the UK solar market landscape improved.
Does IKEA Still Sell Solar Panels?
Yes, IKEA still sells solar panels in several other markets, but not in the UK. In Europe, the furniture giant sells solar panels and battery storage in Germany, Belgium, France, the Netherlands, Italy, Spain, Portugal, Poland, Switzerland and Sweden.
In 2020, Australia became the latest country to welcome IKEA’s solar range following a partnership with Aussie solar giant Solargain.
Will IKEA Sell Solar Panels in the UK Again?
Although IKEA has previously stopped and resumed selling solar panels in the UK market, it’s unclear whether it will relaunch its solar range offers.
In other markets, government tariffs and incentives have allowed IKEA to offer its customers excellent prices on solar panels.
For example, customers can walk into an Australian IKEA store and buy a sizeable 6.37-6.52kW system for A$4,490, including installation and warranty. This translates to around £2,193!
Selling solar panels for such low prices in the UK would be impossible. As such, IKEA will likely resist re-entering the UK solar market until incentives become more generous.
This will allow it to provide affordable offers to its UK customers, as in other markets, and maintain its reputation for good value.
What Are the Best Alternatives to IKEA Solar Panels in the UK?
1. REA Fusion Solar Panels
- Efficiency: 22-24%
- Power: 400-480 watts
- Warranty Period: 25 years
REA Fusion solar panels are highly rated because they’re designed to work well in UK weather and feature a seamless, sleek design. You can choose between black or silver colours.
Manufacturers make REA Fusion solar panels from N-type M10 Topcon solar cells to guarantee high efficiencies of up to 24%. The panels are also bifacial, which can generate electricity from both sides, giving you more power than single-sided panels.
REA Fusion panels are optimised to work with microinverter systems and can generate electricity even in low light conditions, making them ideal for the UK’s cloudy weather.
2. SunPower Maxeon 3 Solar Panels
- Efficiency: 20.9-22.6%
- Power: 370-400 watts
- Warranty Period: 40 years
SunPower Maxeon 3 solar panels feature high efficiencies and one of the industry’s longest warranty periods. Unlike traditional panels using standard monocrystalline and polycrystalline cells, Maxeon 3 panels use integrated Back Contact (IBC) solar cells.
The IBC cells offer better performance, improved efficiency, and very low degradation rates, which explains the lengthy warranty period. The crack-resistant cells and reinforced connections protect the panels against corrosion and fatigue and ensure they can power through any weather.
The Maxeon 3 panels guarantee to maximise energy generation through leading efficiency, enhanced performance in high temperatures, and higher energy conversion in low-light conditions like mornings, evenings, and cloudy days.
3. LG Neon R Solar Panels
- Efficiency: 22.3%
- Power: 350-440 watts
- Warranty Period: 25 years
The LG Neon R solar panels are an excellent choice if you want something affordable but reliable.
These panels offer solid efficiency levels of up to 22.3% and feature a 66-cell design that guarantees 4% more power than others at a similar price.
The n-type cells used in the Neon R don’t contain any boron, leading to lower Light Induced Degradation (LID).
The panels perform excellently even on hot days and are designed with aesthetics in mind. There are no electrodes on the front, and the modules have a sleek, modern appearance.
The LG Neon R panels also have a 25-year performance, product, and labour warranty and are guaranteed to produce at least 92.5% of their labelled power output at 25 years.
Final Thoughts
IKEA solar panels are no longer available in the UK, and there’s no certainty when or if they’ll re-enter the UK solar panel market.
The main reason they exited the country was the end of the Feed-In Tariff scheme, so they may return if incentives or tariffs become more generous.
In the meantime, there are excellent alternatives for you to consider, including REA Fusion, SunPower Maxeon 3, and LG Neon R solar panels.
Frequently Asked Questions
1. How Much Did IKEA Solar Panels Cost?
IKEA solar panels used to cost £5,700 on average for a fully installed system in the UK. The company usually charges much less for solar panels, with current prices in countries like Australia translating to around £2,193.
2. Does IKEA Make Solar Panels?
No. Unlike the furniture, IKEA doesn’t make or install solar panels. Instead, it partners with local solar firms that provide the panels, warranties, and installation.
3. Are IKEA Solar Panels Still Available?
IKEA solar panels are still available but sold in other markets outside the UK.
Sources and References
- https://www.theguardian.com/environment/2016/apr/25/ikea-starts-selling-solar-panels-in-uk-stores
- https://www.ft.com/content/194972d6-814b-11e5-a01c-8650859a4767
- https://www.pv-magazine.com/2017/08/02/solarcentury-and-ikea-launch-residential-home-battery-in-uk/
- https://www.gov.uk/government/consultations/feed-in-tariffs-scheme
- https://www.ikea.com/au/en/clean-energy/solar-systems/