Customers hoping to invest in green energy through a trusted retailer have been left thousands of pounds out of pocket after the collapse of Ikea’s solar panel installation partner, with many discovering their deposits are likely lost for good.
Customer losses and a failed partnership
One customer from Dalkeith, who paid a £3,000 deposit late last year, is among those facing significant losses. After applying for a free quote via the Ikea website and encouraged by paperwork boasting “Ikea pricing”, they discovered the installer, Soly, had ceased trading when emails bounced and phone lines were disconnected. Despite the customer’s attempts to seek help, Ikea has not replied to requests for assistance, leaving individuals to uncover the grim details themselves.
Checking the Companies House register revealed the UK arm, Soly UK Operations Limited, had entered liquidation in January 2026. The administrators, Kevin Ley and Adam Henry Stephens of S&W Partners LLP, have advised customers to register a claim, but confirm the chance of a refund is uncertain.
A swift collapse following a high-profile launch
Ikea’s partnership with the European installer Soly was launched with fanfare in September 2023, marking the retailer’s return to the UK solar market after a four-year pause. Ikea had previously sold solar panels in partnership with Solarcentury but halted sales in 2019, citing the government’s cancellation of the Feed-in Tariff (FiT) scheme.
The collapse, however, was rapid. Soly Holding B.V. and related entities filed for insolvency in the District Court in Groningen, Netherlands, in November 2025, a failure the company attributed to a challenging market and a failed financing round—despite having secured €30 million in funding just ten months prior. The UK subsidiary followed into liquidation in January 2026.
Critically, during this period, Ikea agents reportedly assured concerned customers that Soly’s UK division was still operational, even after it had entered liquidation. Ikea has since removed Soly from its website but has offered no direct advice to affected customers. The company stated it was not a party to Soly contracts, though it was due to receive commissions for successful referrals.
The crucial gap in consumer protection
The plight of these customers exposes a critical vulnerability when an installer fails before work begins, and highlights the importance of specific protective measures. Ikea directed customers to contact HIES, the Home Insulation and Energy Systems Quality Assured Contractors Scheme, for advice. However, the protections offered by such schemes come with strict conditions that many customers may not have met.
HIES offers deposit and stage payment protection insurance, covering up to 25% of the contract value to a maximum of £5,000 for 120 days. This protection, however, is only triggered if the installation contract was proactively registered with the scheme by the installer. In the case of the Dalkeith customer and others, it appears their contracts were not registered, leaving them without this safety net. HIES also provides an Insurance Backed Guarantee (IBG) for completed projects if an installer ceases trading, but this is of no use for unstarted work.
The method of payment has also proven decisive. Those who paid their deposit by bank transfer have little recourse, whereas customers who paid more than £100 (and up to £30,000) by credit card could have a claim against their card issuer under Section 75 of the Consumer Credit Act 1974, which holds lenders jointly liable for breaches of contract.
Separately, the Consumer Rights Act 2015 requires services to be carried out with reasonable care and skill, within a reasonable time. A company’s failure to provide a paid-for service constitutes a breach, though pursuing this against a liquidated company is often futile.
A sale of assets, but not liabilities
In December 2025, the European home energy firm Otovo announced an agreement to acquire select assets of Soly, including customer records and intellectual property. However, Otovo confirmed the deal explicitly excluded liabilities, warranties, or historical service obligations, meaning it has no responsibility for unfulfilled installations or lost deposits. Otovo is instead offering former Soly customers the chance to purchase its own “Otovo Care” service and maintenance solution.
For customers like the one from Dalkeith, the episode is a costly lesson in the risks of the green home improvement market, where the reputation of a major retailer offered a sense of security that ultimately proved hollow.
