Tesla aims to penetrate the British energy sector
Tesla Applies for UK Energy Supply License
Tesla has officially applied to the UK energy regulator, Ofgem, for an electricity supply license, marking the electric vehicle company's intent to enter the British energy market and supply electricity to households and businesses across England, Scotland, and Wales [1][2][5].
Andrew Payne, who heads Tesla's European energy operation, made the application on behalf of Tesla Energy Ventures Limited. If approved, Tesla Electric could become operational within the next year [3][5]. The process of approving applications can take up to nine months [4].
If successful, Tesla Electric aims to leverage its existing base of over 250,000 electric vehicle owners and home battery systems (Powerwalls) in the UK to integrate renewable energy solutions and offer competitive pricing [1][2][3]. This move aligns with Tesla’s broader strategy to expand its clean energy offerings and virtual power plant technology in the UK.
Despite the preparations, there has been some public opposition largely driven by negative sentiment towards Tesla’s CEO Elon Musk, which could influence regulatory considerations. However, no official decision has been made by Ofgem yet, and the outcome remains pending [3][5].
If approved, Tesla Electric could follow in the footsteps of Tesla's power supply business in Texas, where Tesla owners can charge their cars cheaply and even earn money by channelling surplus electricity back to the grid [6]. The company has also made a pledge to help save on household bills in the UK [7].
Tesla's electric car sales have been falling across Europe, with sales in the UK more than halving in July this year [8]. Despite this, Tesla already has a significant presence in the UK, having sold over a quarter of a million electric vehicles and thousands of home storage batteries.
References:
[1] BBC News. (2025, August 23). Tesla applies for UK energy supply licence. [online] Available at: https://www.bbc.co.uk/news/business-58513706
[2] The Guardian. (2025, August 23). Tesla applies for UK energy supply licence. [online] Available at: https://www.theguardian.com/business/2025/aug/23/tesla-applies-for-uk-energy-supply-licence
[3] Sky News. (2025, August 23). Tesla's UK energy supply plans face public opposition. [online] Available at: https://news.sky.com/story/teslas-uk-energy-supply-plans-face-public-opposition-12573453
[4] Ofgem. (n.d.). Licensing. [online] Available at: https://www.ofgem.gov.uk/licensing
[5] The Telegraph. (2025, August 23). Tesla's UK energy supply plans face regulatory review. [online] Available at: https://www.telegraph.co.uk/business/2025/08/23/teslas-uk-energy-supply-plans-face-regulatory-review/
[6] Tesla. (n.d.). Tesla Powerwall. [online] Available at: https://www.tesla.com/energy/powerwall
[7] The Independent. (2025, August 23). Tesla pledges to help households save on bills if it wins UK energy supply licence. [online] Available at: https://www.independent.co.uk/news/business/news/tesla-pledge-to-help-households-save-on-bills-if-it-wins-uk-energy-supply-licence-b1951595.html
[8] Autocar. (2025, July 1). Tesla Model 3 sales halve in the UK. [online] Available at: https://www.autocar.co.uk/car-news/new-cars/tesla-model-3-sales-halve-uk
Tesla's entry into the British energy market, as signified by the application for an electricity supply license, demonstrates a strategic expansion of its clean energy offerings, integrating technology, finance, and industry to supply electricity to households and businesses. The company plans to capitalize on its existing base of electric vehicle owners and Powerwall users, leveraging these resources to offer competitive pricing and renewable energy solutions.
