A consumer has reported a significant financial loss after purchasing solar panels through Ikea’s website late last year. The customer, along with many others, was drawn in by Ikea’s partnership with the European installer, Soly, believing that the collaboration with such a reputable brand would ensure reliability.
In February, the consumer reached out to Soly to inquire about the installation timeline but received an automatic out-of-office reply. A follow-up email in March was returned, and attempts to contact the company via phone were unsuccessful, despite the company’s website remaining operational. This led to the shocking discovery that Soly’s European operations had gone into liquidation. Although Ikea continued to promote the partnership on its website and reassured customers that Soly’s UK division was still functioning, a check on the Companies House registry revealed that the UK branch had also entered liquidation earlier that January.
Since then, Ikea has removed Soly from its website but has not provided any guidance to customers who had paid deposits for installation services. The affected consumer has made multiple inquiries to Ikea, both in-store and online, but has received no response. After conducting their own research, they learned about the administrator handling Soly’s liquidation and were informed that the likelihood of reclaiming their £3,000 deposit is quite low.
The lack of communication from Ikea is particularly disappointing, given the initial promotion of the solar partnership in September, where customers were encouraged to invest in a “better future” through a straightforward process on Ikea’s website. Promotional materials highlighted that Ikea customers could enjoy “Ikea pricing” for solar panel installations.
However, within a month of the launch, Soly’s European operations collapsed, followed by the UK arm in January, without any notifications sent to the customers. Although Soly was subsequently acquired by the energy firm Otovo in December, the new ownership did not assume any liabilities, warranties, or pending installations.
When questioned about the lack of customer notifications regarding Soly’s failure, Ikea avoided the inquiry, clarifying that it was not involved in Soly’s contractual agreements, despite having earned commissions from successful referrals before Soly’s downfall. Ikea did inform the consumer to reach out to HIES, a consumer protection body for renewable energy installations, for further assistance.
This situation highlights the risks faced by customers when their solar panel provider goes out of business before installation can be completed. For those who have had their projects finished, claims can be made through an “insurance-backed guarantee” if the installer was part of a recognized contractor scheme like HIES. HIES also offers deposit protection insurance, but only if contracts are registered, which appears not to be the case here, as the consumer has not received any response to their inquiries.
The administrators of Soly, S&W Group, indicated that customers should file a claim with them, but the possibility of receiving a refund remains uncertain. Unfortunately, since the deposit was paid via bank transfer, the likelihood of recovering the funds is minimal. Had the payment been made with a credit card, the consumer could have filed a claim with their card issuer, which is jointly accountable under the Consumer Credit Act.
For those facing similar issues, the publication encourages readers to reach out via email at consumer.champions@theguardian.com or by writing to Consumer Champions, Money, the Guardian, 90 York Way, London N1 9GU, including a daytime contact number. Please note that while letters are welcomed, individual responses may not be possible, and all submissions are subject to the publication’s terms and conditions.
