Wednesday, October 2, 2013

SOME ( A REAL LOT OF) ASSEMBLY REQUIRED

IKEA rolls out consumer solar panel systems in British stores

I'll take the Billy bookcase, the Karlstad sofa, and a pack of solar panels in black.

Don't laugh it may be true some day.


IKEA stores in Britain this week began selling rooftop solar panel systems, giving the industry a boost after rounds of feed-in tariff cuts and freezes.

The Swedish retail giant confirmed Monday it would roll out the systems to 17 of its stores in Britain in coming months in partnership with Chinese panel-maker Hanergy Solar U.K. after conducting trial run this summer at an outlet in Southampton, England.

Believed to be the first time photovoltaic energy systems have been made available through a mass-market retailer, IKEA's move comes a year after feed-in tariffs paid to British panel owners were slashed from 69 cents per kilowatt to their current 23 cents.

IKEA announced the consumer roll-out after using solar panels extensively to help power its own facilities. Under its corporate sustainability program, the retailer has installed more than 250,000 panels across its stores worldwide and is aiming to produce as much energy as it consumes by 2020.

The price of a standard 3.36-kilowatt PV system for a semi-detached home would run about $10,800, including value-added tax, with 15-percent discounts available under IKEA's Family loyalty program.

Steve Howard, IKEA's sustainability chief, told The Wall Street Journal despite likely low profit margins, the retailer wants to build PV systems into "a real business."

They're becoming easier to sell thanks to the volatility of energy prices, he said, adding, "You don't have to care about the environment and climate change, you can just care about the finances."

After a surge of PV panel-buying when Britain first introduced its feed-in tariff scheme, the number of homes installing rooftop systems has dropped as the FIT has gone down. The British Solar Trade Association says the solar market is currently installing about 100,000 solar systems per year -- far below the projected 300,000.


It will be interesting to see which model prevails. Either way, IKEA's move represents a big bet on solar panels' potential to shake their reputation as boondoggles and become the latest sleek status symbols for the modern home. The company has already begun the work of recasting their aesthetic image, suggesting that its solar panels resemble "flat-screen televisions."

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