Swedish furniture outlet IKEA has cancelled its UK solar PV supply deal with beleaguered Chinese thin-film module manufacturer Hanergy.
An IKEA spokesperson confirmed this afternoon that it had chosen not to renew its solar supply contract with Hanergy, little more than three years after striking the partnership.
But since then Hanergy's share price has collapsed prompting an investigation by Hong Kong’s Securities and Futures Commission and six months of claim and counterclaim between the financial authority and Hanergy Thin Film chairman Li Hejun. Trading of Hanergy shares remains suspended.
In a statement on the situation, IKEA said:
“IKEA Group aims to make residential solar available and affordable for the many people to live a more sustainable life at home. As part of our engagement to enable this, we have successfully rolled out a residential solar offer to stores in three markets; the Netherlands, Switzerland and the United Kingdom.
“Based on the successful roll out and to ensure IKEA Group has a growth plan in place for the future, we have evaluated our business model, starting in the UK. A new business model has been decided upon, which includes the decision not to renew the contract with Hanergy Solar UK when their current contract ends on 1st November 2015.
“IKEA group’s priority now is to work collaboratively with Hanergy Solar UK during the phase out, in order to ensure the best interests of customers and we are working with the local team at Hanergy Solar UK to agree a transition time plan to ensure a smooth transition for our visitors, their customers and store teams.“
IKEA had not followed the thin-film route in the US, nor with Hanergy but typically deployed PV modules on its showroom roofs from a number of module crystalline silicon manufacturers such as REC Solar.