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World

IKEA sees rising demand for solar panels in Sweden due to tax incentive

2021-01-29 09:45:46

STOCKHOLM, Jan. 28 (Xinhua) -- Home furnishing giant IKEA predicted that the demand for domestic solar panels will increase dramatically in Sweden due to a tax incentive introduced at the turn of the year.

"We believe it [the new incentive] will accelerate the boom for solar that has already been in full swing for a couple of years," Jonas Carlehed, head of sustainability at IKEA Sweden, told business daily Dagens Industri.

The incentive is aimed towards private individuals and replaces previous subsidies. It consists of a tax reduction of 15 percent for the cost of solar panels and the installation. The tax reduction for storage systems for the electricity produced is 50 percent. The reductions may amount to a maximum of 50,000 SEK (5,970 U.S. dollars) per person and year, according to estimates.

"This lowers the threshold by making it easier for customers. We see an incredible opportunity to increase sales," Carlehed said.

"As from now, you get 15 percent of the investment through a simple deduction on the invoice. In the past one had to apply for the subsidy, often having to wait for a long time for information and it was uncertain whether the support money would be enough."

Globally, IKEA is also continuing its offensive into the business segment and sells solar panels in nine countries. In Sweden, it sold 800 solar panel systems in cooperation with Svea Solar.

Carlehed considers the sales acceptable in light of the pandemic, which has limited the opportunity to meet customers face-to-face. He did not divulge the revenue, but the business segment is growing.

"We have got off to a strong start. We are present in several markets in Europe and also in Australia and last year saw a sales increase of 90 percent," he said. Enditem

Editor:Jiang Yiwei