LEDARE LED: Smart Grid Technology for Everyone – worldwide

IKEA has developed a comprehensive strategy to promote large-scale use of efficient LED light bulbs. By switching to LEDs at its own locations – and through innovative production that makes LEDs both high-quality and affordable to the public, combined with innovative marketing to change the public’s perception – the campaign is seeking to help millions of people save energy, reduce their bills and lead a more sustainable life at home.

Fast facts:

50 IKEA stores have converted to LED lighting, resulting in energy savings of around 10%;
83 million euros invested in switching lighting in more than 150 remaining stores, in order to save 15% more energy;
Price of IKEA’s most popular LED bulbs has been halved compared to 2013, resulting in a tenfold increase in sales;
135,000 IKEA workers provided with a free LED bulb.

The problem

The information and communications technology industry is ensuring that smart grids and smart metering will soon become a widespread reality. But this “smart” makeover of the energy chain does not necessarily include the end user: The majority of business and home energy consumers continue to use incandescent light bulbs. LED light bulbs consume significantly less energy, and last 20 times longer. Yet the general public has been slow to give up their fragile, energy-wasting standbys. This is largely due to three factors: cost, habit and lack of a better alternative.

The solution

IKEA intends to use quality, affordability and consumer messaging to globally “flip the market” on light bulb sales, making LEDs the standard. By investing in improvements in the production process – including greater automation and changes to the design and materials used – IKEA is making its LEDARE LED lighting more affordable. IKEA has also worked to improve the light quality and energy efficiency of its LED light bulbs. For example, all its new LEDs now use polycarbonate plastic domes rather than glass, which reduces breakage. Providing a higher quality product at a lower cost results in a speedy deployment of energy-saving LED light bulbs and accessories.

As part of this campaign, IKEA pledged to switch lighting at its stores to LEDs. It also launched a multi-platform promotional campaign – to both co-workers and customers – about the energy-saving benefits of its LED bulbs.

Helping the planet

LEDs use less energy than incandescent light bulbs, reducing the need for burning coal and lowering the emission of pollutants, like sulfur dioxide and greenhouse gases. The LED bulbs are also fully recyclable, reducing the demand for extraction of virgin raw materials. Large-scale deployment of LEDs promotes more sustainable living at home.

Helping people

Consumers enjoy savings, both on the cost of the bulb and in their electricity bills. Since LEDs are resistant to shock, vibrations and external impacts – and over their lifetime, light emission is unaffected by frequent on/off switching – they are more durable and require replacement less often. Their low voltage requirement means LED lights can plug easily into varied and remote energy sources, making them flexible and suited for challenging environments. Production of higher-quality and cheaper LEDs enables more people to make the switch and start saving.

Scaling up

IKEA intends to transform its entire lighting range to LEDs and is investing in price reductions to enable millions more to afford the technology – the goal is to quadruple product sales. Through replicating environmental messaging, IKEA believes it can act as a change agent for sustainable behavior. As it radically lowers electricity demand, the widespread use of LED lighting on a domestic level will form an important part of smart grid technology.