Swedish furniture giant Ikea has partnered with a collective energy switching firm to encourage households to sign-up to a 100 per cent renewable tariff.
Ikea is not launching a tariff, rather nudging people to switch to a greener energy supplier, joining forces with the Big Clean Switch.
The latter is a 'profit for purpose' firm that helps people move to renewable energy providers.
The pair say that switching to a tariff with them could save households around £300 a year through lower electricity and gas bills.
Bright idea? Swedish furniture Ikea has teamed up with the Big Clean Switch to help households secure a cheap green energy tariff
Households can register their interest for the collective switch from today. Big Clean Switch will then look to negotiate the best deal possible with green suppliers.
The firm will only consider tariffs where 100 per cent of the electricity is guaranteed to come from renewable sources, such as solar and wind.
Collective switches have become popular in recent years. They work by clubbing people together in order to haggle down a better tariff to those who have registered.
This is Money has had a several successful collective switching events in the last few years.
Big Clean Switch says the more people who've registered, 'the better the deal could be'.
However, there is no guarantee that the switch will lower your bills – or beat the best tariffs already on offer.
Furthermore, if you are on a fixed tariff with a current supplier, you may be charged an exit penalty, which could outweigh any potential savings.
The tie-in with Ikea is likely to drive up publicity of renewable tariffs – both in stores and with enhanced coverage.
The firm is committed to improving sustainability, as This is Money found out in a recent trip to Älmhult, Sweden.
The prices will be announced on 6 March.
Listed on the Big Clean Switch website are suppliers such as Bulb, Bristol Energy, Ecotricity, Good Energy, Octopus and Tonik.
Some people may be nervous about switching to a lesser known supplier.
The Big Clean Switch says: 'Smaller suppliers make up a growing part of the UK energy market.
'We review the customer service and environmental credentials of every supplier we work with, so that you can switch with confidence.
'We make a simple promise to all our users: if you have a problem that you can't resolve directly with your new supplier, we'll take it up with them on your behalf.'
Hege Sæbjørnsen, sustainability manager at Ikea UK, said: 'Our commitment to sustainability goes beyond minimising the impact of our own operations to having a positive impact on the world around us.
WHAT IS 'RENEWABLE ELECTRICITY'
Different types of renewable electricity sources include wind power, solar power, hydro power, bioenergy, tidal and wave power.
Electricity that comes from renewable sources is kinder to the environment compared to traditional fossil fuels that can cause air pollution and contribute to climate change.
'We want to provide our customers with innovative solutions that will help them live a more sustainable life at home and save money in the short and long-term.
'By partnering with the Big Clean Switch, we hope to make switching to renewable electricity simple, accessible and affordable to everyone.'
Big Clean Switch is funded through the commission it receives from a supplier whenever someone switches to clean electricity through the campaign.
For every switch, Big Clean Switch will pass 40 per cent commission it receives onto Ikea which will then be used to support local community initiatives.
The Big Clean Switch says that when the tariff is chosen, in order to ensure the supplier can maintain customer service levels, there will be a limit on the number of households that can switch.
It says it will confirm how many households can switch when the tariff goes live. You can register your interest on its website.