4,000 Solar Panels to Power 70% of IKEA Australia Warehouse

IKEA’s recent strides in sustainability both support its operations and are a crucial step forward for environmental preservation.

Speaking off the back of its Annual Summary and Sustainability Report FY24, Ingka Group CEO Jesper Brodin said the company proves the “business case for investing in climate action works”.

And now, IKEA says that its business in Australia has reduced its operational climate footprint by a staggering 89% in the last decade.

Revolutionising energy use with solar

Renewable energy stands out as an essential and increasingly accessible tool for companies to limit their environmental impact.

Solar energy, in particular, has seen a surge in adoption due to cost reductions and advances in technology.IKEA Australia has announced a substantial solar energy project at its Marsden Park facility in Sydney.

This initiative, valued at AU$2.9m (US$1.8m), is capable of generating up to 70% of the energy required for its 24-hour warehouse operations.

More than 4,000 solar panels have been installed over a sprawling 9,000m² rooftop, delivered by Smart Commercial Solar.

Additionally, the Marsden Park location has integrated a 1MW battery system which allows the storage of surplus power, which can be deployed during high-demand periods and nighttime operations.

IKEA Australia Country Sustainability Manager Renea Robson says: “Showing we have significantly reduced our emissions from operations while growing the IKEA Australia business proves that investing in climate action and delivering commercial success is absolutely achievable — together.

“This new project we are proud to launch at our Marsden Park distribution centre is a standout example of the kind of investments we are making — not only because they are good for the planet and taking our renewable energy ambitions to the next level, but because they benefit our business, too.”

Since 2014, IKEA Australia has been proactive in utilising its abundant rooftop and parking areas for renewable installations.

Currently, nine of its 10 large retail locations, as well as the Marsden Park distribution centre, are equipped with solar arrays.

The  upgrades at Marsden Park are set to boost onsite renewable energy production from 26% to 70%, powering not only daily operations but also the electric vehicles (EVs) used for IKEA's home deliveries.

Smart Commercial Solar’s CTO Kealy Day adds: “What I’m most proud of in this project is how Smart has evolved with technology and the market to make solar and battery storage a cost-effective, practical solution for businesses. 

“It’s proof that clean energy isn’t just the right choice — it’s now the smart choice.”

Sustainability at IKEA Australia

In IKEA Australia’s annual summary and sustainability report says that, for the wider IKEA business, success is measured across four key pillars: ​​​​​​​

In keeping with these markers of success, IKEA Australia has achieved the following in FY24, as outlined in the report:

• 100% renewable electricity use in retail operations
• 44% of main dishes are now plant based, with these meals having a lower environmental impact than those with meat
• 45% of customer orders were delivered in a zero emissions vehicle, peaking at 65% in January 2025
• AU$4.5 million investment in dedicated electric vehicle chargers for delivery partner fleets in all IKEA stores across the country and distribution centre
• Supported more than 1300 people with AU$138,000 worth of IKEA products that were discontinued, ex-display or excess products. This also saved 5.2 tonnes of potential waste from landfill.

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