(Bloomberg) -- Furniture giant Ikea will offer renewable energy to Swedish households for the first time, tapping into the growing market for green electricity as it further diversifies its business.
From September, the company will offer electricity produced from solar plants and wind turbines, together with energy supplier Svea Solar, it said in a statement. It plans to branch out to other markets eventually.
With the new service, Ikea aims to encourage the production of more solar and wind capacity just as the electrification of everything from heavy industry to transport increases power demand. Branching out into the retail energy market is yet another step away from the company's traditional business of selling flat-pack furniture. Ikea already offers solar panels, as well as banking and insurance services.
Customers will pay a flat monthly fee in addition to the wholesale rate of power traded on the Nord Pool power exchange in Oslo, and they will be able to track their consumption in an app on their phones. Svea Solar will buy the electricity for hourly prices and sell it on to customers.
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