Elon Musk’s Tesla is mulling plans to enter the United Kingdom energy market soon. The company would look to provide a fierce challenge to major providers like Octopus and British Gas. According to reports from Telegraph, Tesla applied to the UK energy regulator, Ofgem, on July 25.
In its application, Tesla says it wants to supply energy to domestic customers. The filing, signed by Andrew Payne signals a notable step forward in the company’s expansion plans. If approved, “Tesla Electric” could begin serving customers as soon as next year. The new service is expected to come hand in hand with its usual products.
Tesla mulls plans to enter the UK energy market
Tesla already runs a program like this in Texas, where customers can benefit from cheaper charging rates for their cars and earn payments for sending unused solar-generated or battery-stored electricity back to the grid. A report from 2023 detailed Tesla’s intention to enter the home energy market, carrying out recruitment campaigns for policy and operational roles.
With tens of thousands of Powerwall batteries already installed in Britain, devices that can store energy from solar panels or off-peak charging, Tesla holds an infrastructure advantage. In addition, Tesla offers residential EV charging equipment and has over 250,000 cars on UK roads. This network could be key to rolling out “vehicle-to-home” systems, where a car’s battery can supply power to the household. Several other providers are trialling this type of technology, which Tesla could incorporate.
Sales of EVs in the United Kingdom drop drastically
Sales of Tesla’s electric cars in the United Kingdom have dropped sharply, with July showing a 60% year-on-year decline, a trend echoed in other European markets, such as Germany, where deliveries fell by over 55%. The slump reflects stiffer EV market competition and controversies linked to Musk, including his public support for political figures like Donald Trump and Tommy Robinson.
Analysts have noted that even Musk’s recent efforts to distance himself from politics have not reversed the European sales downturn, with Tesla registering five consecutive months of falling deliveries across the continent. In the United States, the company offers a fixed-rate plan for unlimited vehicle charging during certain time windows. Powerwall owners can also link their units to the grid, allowing Tesla to tap into stored energy at peak times in exchange for payments.
Tesla previously partnered with Octopus Energy in 2020 for a combined energy tariff but ended that collaboration three years later to operate independently. It still works with Octopus, so Powerwall owners can use the latter’s software to sell stored power at premium times. Approval for an Ofgem electricity supply licence can take up to nine months, though in some cases the process is quicker. Rules have become stricter since the 2021 energy market crisis, when multiple small suppliers collapsed.
