IKEA announces solar power projects in Texas and Utah

IKEA, a Dutch company known for self-assembled furniture and home goods, recently announced a plan to acquire and expand two solar projects in Texas and Utah. IKEA currently owns and operates 367 stores worldwide and earned over $42 billion in revenue in 2018.

This innovative plan is overseen by the Ingka Group, a strategic partner owned and operated by IKEA. Currently, the Ingka Group owns 900,000 solar panels that are placed on the roofs of IKEA stores, distribution centers and company buildings worldwide.

IKEA’s new plan involves an agreement with Copenhagen Infrastructure Partners, an investment firm based in Denmark. The terms of this agreement involve IKEA obtaining a 49 percent stake in the firm’s solar plants, which will be IKEA’s first off-site solar investment. These plants consist of 823,000 solar panels in Texas that will become operational in January. An additional 636,000 panels will come online later this month in Utah.

Investing in these solar farms will allow IKEA to reduce its carbon emissions while aiding in the development of green energy technology and renewable resources.

In terms of solar energy, Texas currently ranks fifth in the U.S., generating nearly 5 percent of the country’s annual solar power. However, Texas’ rank will likely improve in the future. In June, Texas reported over 225,000 shipments of photovoltaic modules – the second largest number of shipments in the country (behind California).

Solar power has grown in popularity in recent years because it is a renewable resource that allows for lessened dependence on the burning of fossil fuels. Alternative forms of energy can result in positive impacts on the environment. Fossil fuels and coal emit extremely high levels of harmful chemicals, such as carbon dioxide, that negatively affect the environment and directly contribute to global warming. Renewable energy sources, including solar power, do not emit dangerous levels of carbon dioxide and can help cut back on the effects of global warming.

The Texas solar farms are not IKEA’s only investment into renewable energy sources. IKEA plans to produce as much renewable energy as it consumes by 2030. The company has previously invested in two wind farms in Texas and Illinois and has solar panels installed at 90 percent of its locations. IKEA also has a plan to reach energy independence through investing further in wind and solar power sources.

IKEA is also working towards the goal of using 100 percent sustainably-sourced wood by 2020 and strives to minimize waste in the products produced. Additionally, the company strives to reduce the “fill rate” of their shipments – meaning IKEA aims to maximize the space in the trucks and containers shipping company products. “More products per load means fewer trucks, trains and boats and a sizeable drop in CO2 emissions,” states the company website.

Caitlin Ritchie is a writer within the energy and power industry. Born in Georgia, she attended the University of Georgia before earning her master’s in English at the University of North Carolina at Charlotte.

Image/Shutterstock