LONDON, UK — August 2025 — Tesla, the electric vehicle (EV) manufacturer led by Elon Musk, is moving closer to launching its own home electricity supply service in Great Britain within the coming months.
According to a public notice on the website of Ofgem — the UK’s government energy regulator — Tesla has formally applied for an electricity supply license. If approved, this would allow Tesla to sell electricity directly to homes and businesses across England, Scotland, and Wales as early as 2026.
For context: Ofgem’s approval process can take up to nine months, and Tesla would be joining a competitive UK energy market alongside established suppliers like Octopus Energy, British Gas, and EDF.
Tesla Electric: A Service for Tesla Owners First?
The service is expected to be branded as Tesla Electric, mirroring the company’s existing offering in Texas, USA. Industry speculation suggests it will initially target households that already own Tesla products such as Powerwall home batteries or Tesla EVs.
Unlike most traditional UK energy providers, Tesla is only applying for an electricity license — meaning it will not supply gas or dual-fuel contracts.
The application was submitted last month by Tesla Energy Ventures, the company’s UK-based energy subsidiary headquartered in Manchester. The filing was signed by Andrew Payne, Tesla’s European energy division lead since 2016.
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Tesla’s UK Car Sales in Decline
The timing of Tesla’s move into the UK energy market comes as its EV sales face a sharp drop in Europe.
In July 2025, only 987 Tesla vehicles were registered in the UK — down nearly 60% from 2,462 units in July 2024. This reduced Tesla’s UK market share from 1.67% to just 0.7% year-on-year.
Cumulatively, Tesla’s UK sales for 2025 are 7% lower compared to the same period last year. The decline coincides with mounting political controversies surrounding Elon Musk, including criticism over his ties to Donald Trump and interventions in political debates in Germany, France, and the UK.
Tesla’s Energy Business in the UK
Tesla already has a presence in the UK’s energy sector through sales of:
- Powerwall Home Batteries — rechargeable energy storage units that can store electricity from solar panels or charge from the grid during off-peak hours.
- Home EV Chargers — for convenient overnight charging.
The company hinted at its intention to supply electricity to UK households two years ago, when it posted a job listing for a UK energy operations manager. Tesla first entered the British energy market in 2020, when it secured a license to operate as an electricity generator.
In Texas, Tesla launched its home electricity service in 2022, allowing customers to:
- Charge their EVs at lower rates.
- Sell surplus solar power or stored battery energy back to the grid for a profit.
If replicated in the UK, Tesla Electric could give British homeowners with solar panels and Powerwalls a new way to reduce energy bills and generate income.
