Ikea's Green Energy Deal Could Save Customers Hundreds Each Year

Ikea is on a sustainable path by adding solar panels, battery backup solutions, and committing to make their operations totally green. They are also helping make their customers embrace greener energy in a collaboration with Big Clean Switch.


May 13 2019, Updated 4:53 p.m. ET

Ikea is committed to running on 100 percent renewable energy by 2020 across their entire global operations. They are also testing plant-based foods in their restaurants. Now, they’re looking to help citizens in the United Kingdom easily switch themselves. In a collaboration with Big Clean Switch, they’ll work with customers to put more green energy into the grid through renewable electricity tariffs.

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The collaboration will use a “collective switch model” that will bring together a limited-time tariff for fully renewable energy. A network of renewable suppliers under Big Clean Switch will compete for the best tariff while pre-registration continues from now until March 6th. At that time, the tariff will be available until March 26th.

With these tariffs, the amount of energy that’s used by the consumer from the national grid will be replaced with energy from renewable sources, such as solar and wind. Making the switch is easy, according to Big Clean Switch -- it takes less than five minutes, there is no supply disruption, and there are no engineer visits.

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“We want to give as many people as possible the opportunity to switch to renewable electricity and our partnership with Ikea is a big step forward in helping more people achieve this,” Jon Fletcher, Big Clean Switch’s campaign director, said in a press release. “Every person who makes the switch plays a vital role in taking the necessary action to help reduce the impact of climate change.”

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Ikea will receive a 40 percent commission for every switch. That money will be split amongst the UK stores and then go toward local community initiatives. Not only has the company committed to running on renewable energy themselves, but they want to help their customers switch over as well. 

Not only is it an environmentally conscious decision, but customers could save up to 300 British pounds, or nearly $420 USD, on an annual basis if they make the switch. This is also ideal for those that want to support renewable energy, but don’t have the means to install solar panels or aren’t in a location with adequate sunlight.

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“We want to provide our customers with innovative solutions that will help them live a more sustainable life at home and save money in the short and long-term,” Hege Sæbjørnsen, Ikea UK’s sustainability manager, said in a press release. “By partnering with the Big Clean Switch, we hope to make switching to renewable electricity simple, accessible and affordable to everyone.”

While Ikea’s method is limited to the UK, there are options for United States citizens. Arcadia Power is available in all 50 states and utilizes Renewable Energy Certificates, which is similar to the tariff system. Based on how much renewable energy customers want to use, they can offset 50 percent of their utility bill for free, or up to $10 extra to offset all of their consumption.

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