Elon Musk’s Tesla applies for licence to supply electricity to British homes

Elon Musk’s Tesla is preparing to enter the UK household energy market after applying for a licence to supply electricity to homes and businesses across Great Britain.

The US electric carmaker, which also operates an energy business in America, has formally applied to the energy regulator Ofgem for an electricity supply licence covering England, Scotland and Wales. If approved, the move would allow Tesla to begin offering domestic electricity deals – potentially under the Tesla Electric brand – as early as next year.

The application was lodged last month by Tesla Energy Ventures, the company’s Manchester-based energy arm, and signed by Andrew Payne, Tesla’s head of European energy operations. Ofgem can take up to nine months to assess supply applications.

Tesla is expected to target customers who already own its products, such as Tesla Powerwall home storage batteries or its electric vehicles, offering cheaper charging and payments for selling surplus solar energy back to the grid. However, the licence application covers only electricity, meaning households on dual-fuel gas and electricity contracts would need to split suppliers to use the service.

The move signals a major expansion of Tesla’s UK energy ambitions, building on its 2020 licence to operate as an electricity generator. In Texas, where Tesla launched its first household supply offer in 2022, customers can access low-cost charging and sell excess stored or generated energy back to the grid.

The UK launch comes amid a slowdown in Tesla’s European car sales. July figures from the Society of Motor Manufacturers and Traders show UK registrations fell almost 60% year-on-year to 987 vehicles, reducing the company’s market share to 0.7%. For 2025 so far, UK sales are down 7%.

Musk has also faced political controversy in recent months, including a soured relationship with Donald Trump and criticism over his interventions in politics in Germany, France and the UK.

Tesla has sold significant numbers of Powerwall systems in Britain, enabling households to store energy from solar panels or the grid during off-peak hours. It also offers home charging units for its cars – a natural customer base for its potential electricity supply business.

By moving into household energy supply, Tesla is positioning itself as a vertically integrated player in the UK’s clean energy sector – from solar generation and battery storage to electric vehicle charging and now retail electricity supply.