IKEA unveils new large-scale solar project at Sydney’s Marsden Park, to power 70% of warehouse operations
Today, IKEA has announced it is nearing completion of an innovative renewable energy initiative at its western Sydney distribution centre at Marsden Park, set to generate up to 70% of the energy needed to run its round-the-clock warehouse operations.
The $2.9 million commercial solar PV and battery project, delivered by Smart Commercial Solar, uses 9000 square metres on the rooftop of the IKEA distribution warehouse to house over 4000 solar panels with a generation capacity of 2,034KW.
This will grow the renewable energy generation onsite from 26% up to 70%, marking a major achievement in the Australian retail industry. The energy will power both IKEA day-to-day operations in the distribution warehouse, as well as to charge the electric vehicles used for IKEA home deliveries - taking the retailer’s zero emissions ambition to the next level.
When the final part of the project, the installation of a 1MW battery, is soon complete, energy generated through the rooftop solar can be stored to support with operational periods of peak demand and throughout the night.
This announcement coincides with the release today of the IKEA Australia FY24 annual summary and sustainability report which reveals an 89% reduction in operational climate footprint since FY16, while at the same time growing revenue by 68%.
IKEA Australia Country Sustainability Manager Renea Robson, said, “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 today 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.”
For over a decade, IKEA Australia has been focusing on generating renewable energy and introducing energy storage to its stores and distribution centres, taking advantage of the expansive rooftops and carpark spaces. This began in 2014, and today IKEA Australia has solar panels installed on 9 out of 10 ‘big blue box’ stores, in addition to the distribution centre at Marsden Park.
In FY24, IKEA Australia achieved 100% renewable electricity use in retail operations. This came from onsite energy generation and where needed, large-scale renewable energy certificates in line with Clean Energy Regulatory requirements. Projects like this help IKEA increase its own renewable energy production and reduce the need for certificates.
Smart Commercial Solar Chief Technology Officer Kealy Day said “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.”
IKEA Australia’s annual summary and sustainability report outlines how, for IKEA, success is measured across four key pillars: Better Homes, Better Lives, Better Planet, Better Company. Key results for FY24 from the report:
- 100% renewable electricity usage across Australian retail operations.
- 44% of main dishes are now plant based, with a lower environmental impact than meat.
- 45% of customer orders were delivered in a zero emissions vehicle, peaking at 65% in January ‘25.
- $4.5 million investment in dedicated electric vehicle chargers for delivery partner fleets in all IKEA stores across the country and distribution centre.
- Supported 1300+ people with $138,000 worth of IKEA products that were discontinued, ex-display or excess products, which also saved 5.2 tonnes of potential waste from landfill, with partner Good 360.