IKEA launches new dynamic electricity tariff to reduce energy bills

IKEA has announced a new dynamic electricity tariff named ‘Svea Strom’ in partnership with Svea Solar. Exclusively available in Germany, this is the latest offering from the two companies, which already provide solutions like balcony power plants and solar heat pumps.

With Svea Strom, IKEA and Svea Solar are providing customers with direct access to wholesale electricity prices. Historically, these have only been available for larger customers. This could benefit Svea Strom customers in multiple ways. Firstly, they will be charged for the energy they use rather than a fixed monthly fee. Secondly, through the Svea Solar app, users will be able to monitor energy prices, which change every 15 minutes. For example, during a period with high levels of solar or wind energy on the grid, prices typically drop. You could take advantage of these lower rates to reduce your energy bill. Finally, customers with a photovoltaic (PV) system, a heat pump, battery storage or an electric vehicle could automatically switch electricity usage to lower tariff times.

Svea Solar estimates that Svea Strom customers could save over €600 annually. Customers are charged a basic monthly fee of €6.99. However, IKEA members who sign up before February 1st will not need to pay this fee for the first six months. After this point, IKEA Family and IKEA Business Network members will pay a reduced fee of €5.95. There is no minimum contract term, though there is the incentive of a €25 IKEA voucher for customers who stay for six months. Other benefits include free smart meter installation if mandatory, and the Svea Solar app is also free. It is unclear whether or when IKEA x Svea Solar’s Svea Strom dynamic tariff could arrive in other countries.