IKEA has partnered with energy technology company Solarcentury to launch its Solar Battery Storage Solution, which features solar panels and home batteries, in the U.K. Solarcentury, one of the U.K.’s biggest solar panel providers, will produce the panels.
IKEA’s home storage battery works in the same way as Tesla’s Powerwall, storing energy generated from the solar panels instead of selling excess energy back to the grid. The home batteries are compatible with existing solar panels or as a part of a combined storage system.
There is a bit of a sticker shock for those used to IKEA’s affordable prices—the upfront cost for both panels and battery is £6,925 (about $9,034 in U.S. dollars)—but the company estimates customers will make their money back within 12 years and their electricity bills will be cut by up to 70 percent.
Solar panels and home battery systems have been making big waves thanks to Tesla’s recently-announced offering. While still expensive, IKEA’s solar system has an advantage in that its starting price is much lower. Just the batteries will cost £3,000 (around $3,900) as opposed to Tesla’s price of £5,900 (about $7,684). However, location, type of building, and size of roof, also affect the final cost.
“We believe IKEA and Solarcentury are bringing the most competitive package to the market yet so more people than ever before can profit financially and environmentally by producing their own energy,” Susannah Wood, head of residential solar at Solarcentury, said in a press release.
This news comes on the heels of two big announcements for the U.K.’s energy industry. Just last week, the U.K. government unveiled a plan that will allot £246m of funding (that’s around $320.48 million) for battery technology research. British gas owner Centrica also revealed that it would be increasing its energy prices 12.5 percent, despite promises to lower costs.
If you live in the U.K., IKEA’s website offers a free estimate on how much installing its Solar Battery Solution will save you.