Tesla is preparing to enter the U.K.’s household energy market, with plans to launch a new electricity supplier under the “Tesla Electric” brand in the coming months — reports The Telegraph.
The company has reportedly applied to the U.K.’s energy regulator, Ofgem, on July 25 for a license to supply electricity, potentially competing with established players like Octopus Energy and British Gas as early as next year.
This comes a whole two years after Tesla initially teased plans to sell electricity directly to households in the U.K. The move would mark a significant expansion of Tesla’s energy ambitions in Britain, building on the success of Tesla Electric in Texas, where it offers customers low-cost EV charging and pays Powerwall owners for feeding excess solar or stored energy back into the grid.
In Texas, Tesla Electric recently started offering a fixed-rate clean energy plan for homes in partnership with solar provider Sunrun.
In the U.K., Tesla already has an installed base of tens of thousands of Powerwall batteries, home chargers, and over 250,000 Tesla vehicles on the road — assets that could give it a strong foothold to launch a “virtual power plant” network. Such a system would store excess energy from renewable sources and feed it back to the grid during peak demand, potentially saving households money while supporting grid stability.
Tesla has held a power generation license from Ofgem since 2020 and operates large-scale battery installations in the wholesale energy market, but a supply license would allow it to sell directly to households. While Tesla has not applied for a gas license, meaning dual-fuel customers would still need another supplier for gas, the electricity plan could be particularly appealing for EV owners and solar adopters.
With Ofgem’s licensing process sometimes taking just weeks, Tesla could be ready to flip the switch for U.K. customers sooner than expected.
