Tesla is making moves to enter the household energy market in the United Kingdom, as the company plans to launch its own electricity supplier under the brand name “Tesla Electric” in the near future. This development was first reported by The Telegraph, indicating that Tesla has applied for a license from the U.K.’s energy regulator, Ofgem, on July 25. If approved, Tesla Electric could potentially compete with established energy providers like Octopus Energy and British Gas as early as next year.
This announcement comes after Tesla initially hinted at plans to sell electricity directly to U.K. households two years ago. The expansion into the energy market in the U.K. would be a significant step for Tesla, building on the success of its energy initiatives in other regions. In Texas, for example, Tesla Electric has been offering customers low-cost EV charging and even compensating Powerwall owners for supplying excess solar or stored energy back to the grid.
With an existing base of tens of thousands of Powerwall batteries, home chargers, and over 250,000 Tesla vehicles on U.K. roads, Tesla is well-positioned to establish a “virtual power plant” network. This network would enable the storage of excess energy from renewable sources and its distribution back to the grid during peak demand, potentially benefiting households financially while supporting grid stability.
While Tesla currently holds a power generation license from Ofgem and operates large-scale battery installations in the wholesale energy market, obtaining a supply license would allow the company to directly sell electricity to households. It is important to note that Tesla has not applied for a gas license, meaning that dual-fuel customers would still need to rely on another supplier for gas services. However, the electricity plan could be particularly appealing for electric vehicle owners and solar energy adopters.
Given that Ofgem’s licensing process can sometimes be expedited in just a matter of weeks, Tesla could be poised to launch its energy services for U.K. customers sooner than anticipated. This move signifies Tesla’s commitment to expanding its presence in the energy sector and offering innovative solutions to consumers in the U.K. and beyond.