IKEA Australia has unveiled a major renewable energy initiative at its Marsden Park distribution centre in western Sydney, set to generate up to 70 per cent of the energy needed for warehouse operations.
The $2.9 million solar photovoltaic (PV) and battery project, delivered by Smart Commercial Solar, involves the installation of over 4,000 solar panels covering 9,000 square metres of the warehouse rooftop, with a generation capacity of 2,034KW. This will increase the site’s renewable energy production from 26 per cent to 70 per cent, marking a significant step forward in the retail sector’s push towards sustainability.
Once completed, the final phase of the project will see the installation of a 1MW battery, allowing IKEA to store excess energy generated during the day to support operations during peak demand and nighttime hours. This energy will also be used to charge electric vehicles (EVs) utilised for IKEA home deliveries, aligning with the company’s zero-emissions goal.
Renea Robson, Country Sustainability Manager at IKEA Australia, highlighted the project’s dual benefits: “Investing in climate action while delivering commercial success is absolutely achievable. This new project at Marsden Park is a prime example – it’s good for the planet and our business.”
The project announcement comes as IKEA Australia releases its FY24 annual summary and sustainability report, revealing an 89 per cent reduction in operational climate footprint since FY16, while growing revenue by 68 per cent.
IKEA Australia has made significant strides in renewable energy adoption since 2014, with solar installations on 9 out of 10 large retail outlets, in addition to the Marsden Park distribution centre. In FY24, IKEA achieved 100 per cent renewable electricity use in its Australian retail operations through a combination of on-site generation and renewable energy certificates.
Kealy Day, Chief Technology Officer at Smart Commercial Solar, said the project demonstrates that clean energy is both a practical and cost-effective solution for businesses.
The report also outlines IKEA’s progress across four sustainability pillars: Better Homes, Better Lives, Better Planet, and Better Company. Key highlights include achieving 100 per cent renewable electricity across retail operations, increasing plant-based main dishes to 44 per cent, and ensuring that 45 per cent of customer orders were delivered by zero-emissions vehicles, with a peak of 65 per cent in January 2025. Additionally, IKEA invested $4.5 million in EV chargers for delivery partners across all stores and distribution centres.
Through partnerships, such as with Good 360, IKEA has also repurposed discontinued or excess products, saving over 5.2 tonnes of waste from landfill.
As IKEA continues to focus on integrating renewable energy and sustainable practices, the Marsden Park project stands as a testament to the company’s commitment to balancing commercial growth with environmental responsibility.