Tesla is poised to make a significant move into the UK household energy market after filing an application to supply electricity to homes and businesses across Great Britain.
The US electric vehicle manufacturer, which has an established energy business in the United States, submitted its application last month to Ofgem, the UK energy regulator, for a licence to operate as an electricity supplier in England, Scotland, and Wales. The application was made through Tesla Energy Ventures, the company’s Manchester-based energy division, and signed by Andrew Payne, Tesla’s head of European energy operations. Ofgem’s review process for such applications can take up to nine months.
If approved, Tesla could begin offering domestic electricity deals – potentially under the Tesla Electric brand – as early as next year. The company is expected to focus initially on customers already using its products, such as Tesla Powerwall home energy storage systems and its electric vehicles, with incentives including cheaper charging rates and payments for surplus solar energy exported to the grid.
However, the application is limited to electricity supply, meaning households on combined gas and electricity contracts would need to separate their suppliers in order to take up Tesla’s service.
The move represents a major expansion of Tesla’s UK energy ambitions, building on its 2020 licence to operate as an electricity generator. In Texas, where the company launched household supply services in 2022, customers benefit from low-cost vehicle charging and the ability to sell stored or generated electricity back to the grid.
The UK push comes during a challenging period for Tesla’s car sales in Europe. Figures from the Society of Motor Manufacturers and Traders show UK registrations in July fell nearly 60% year-on-year to 987 vehicles, reducing market share to 0.7%. Overall UK sales in 2025 are down 7%.
Tesla’s energy credentials in Britain are already well-established. The company has sold significant numbers of Powerwall units, allowing households to store energy from solar panels or the grid during off-peak hours. It also offers home charging units for its vehicles, creating a natural market for its electricity supply business.
By adding household electricity supply to its portfolio, Tesla is positioning itself as a vertically integrated energy provider in the UK – spanning solar generation, battery storage, electric vehicle charging, and now retail power supply. The move also underscores the company’s growing focus on clean energy solutions beyond its automotive business.
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