Tesla eyeing UK home energy service

Tesla applies to Ofgem for an electricity supply licence in the UK, aiming to expand into home energy alongside its car business.

Tesla seeks electricity supply licence to power UK homes

Tesla has applied to Ofgem for an electricity supply licence in Britain, a move that would let the company sell power to households and compete with established providers such as Octopus Energy and British Gas. The licence review can take up to nine months, during which regulators assess the company’s plans and consumer protections.

If approved, Tesla would mirror its Texas energy activities, where Tesla Electric bundles home energy, EV charging and grid services for customers. In Texas the company operates a virtual power plant that lets customers export energy from Powerwall batteries back to the grid. In the UK, the regulatory and market environment would shape how such a service is packaged and priced, and whether vehicle batteries or home storage become key parts of grid balancing. The article notes that the UK’s existing car batteries are not configured to export power to the grid yet, which could influence the pace and design of any UK rollout.

Tesla’s UK filing signals a broader shift in which automakers step into the energy supply arena. If licensed, the company could chip away at price competition while offering customers a tighter link between mobility and home energy. The move also poses questions for regulators about consumer protection, data handling, and who bears the cost of grid stability as more homes add storage and bid into demand response.

For the UK, the development could accelerate the adoption of distributed energy resources and two way grids, but it will test existing tariff structures and wholesale pricing models. The biggest hurdle may be aligning rapid product development from a tech company with the slower, careful pace of energy regulation and customer service.

Highlights

The energy map could shift as cars and homes collaborate more closely with the grid.