Tesla’s moving beyond electric cars to power British homes directly. The company has applied for a license from Ofgem, the UK’s energy regulator, to supply electricity across England, Wales, and Scotland. Andrew Payne, Tesla’s Head of Energy for the EMEA region, signed the application that would let the company compete with traditional British power suppliers.
The timing isn’t random. Tesla’s car sales have been dropping while its energy business grows stronger. UK vehicle sales fell 60% in July compared to last year. The company faces tough competition from other carmakers and changing buyer preferences. Rising interest rates have also dampened consumer demand for electric vehicles across the market. This push into home electricity supply offers Tesla a new way to generate money beyond selling cars.
Tesla already has a strong foundation in Britain. About 250,000 Tesla vehicles drive on UK roads. Thousands of British homes use Tesla’s Powerwall battery systems. The company runs its UK energy operations from Manchester and has service centers and stores across the country.
Tesla’s also supplied electricity to homes in Texas, giving it experience in the utility business. The company’s energy division has become increasingly important. Revenue from renewable energy nearly doubled last year, jumping by $1.5 billion.
Tesla wants to convert from just a car company into a complete energy provider. It’s part of the company’s bigger plan to create a sustainable energy ecosystem. The UK’s commitment to achieve net-zero carbon emissions by 2050 makes it an attractive market for Tesla’s renewable energy alternatives.
If approved, Tesla would offer several services. Customers could buy electricity directly from Tesla. The company might bundle power supply with solar panel installations. Electric vehicle owners could get special charging rates. Homeowners with battery storage could sell extra energy back to the power grid. Virtual Power Plant programs could provide additional revenue opportunities for participating customers. Everything would connect through Tesla’s existing energy monitoring systems.
The approval process takes time. Ofgem typically needs up to nine months to review applications. Officials will check Tesla’s finances and operations carefully. Industry experts think Tesla could start supplying power as early as 2026 if everything goes smoothly.
Tesla’s entry would shake up Britain’s energy market. Traditional suppliers would face a tech-focused competitor. The move could help Tesla steady its income as car sales fluctuate. It represents a major shift in how the company operates globally.