Tesla has formally applied to the UK’s energy regulator, Ofgem, for a license to supply electricity to households and businesses across England, Scotland, and Wales. This strategic move marks Tesla’s first expansion of its retail electricity services outside the United States, following its successful operations in Texas.
The application was submitted by Tesla Energy Ventures Limited, the company’s energy division based in Manchester, under the leadership of Andrew Payne. If approved, Tesla plans to launch its electricity supply services in the UK as early as 2026. The company aims to offer a comprehensive energy solution that integrates solar generation, battery storage, and electricity supply, providing customers with a seamless and sustainable energy experience.
Tesla’s existing presence in the UK, with over 250,000 electric vehicles and numerous home energy storage units, positions the company to effectively serve a substantial customer base. The proposed services are expected to include features such as vehicle-to-grid integration, enabling customers to sell surplus energy back to the grid, and adaptive energy pricing models that promote renewable energy consumption.
This expansion into the UK energy market comes at a time when Tesla’s electric vehicle sales in Europe, particularly in the UK, have experienced a decline. In July 2025, UK sales were nearly 60% lower compared to the same month in 2024. By diversifying into the energy sector, Tesla aims to mitigate the impact of slowing vehicle sales and capitalize on the growing demand for renewable energy solutions.
Tesla’s application to supply electricity in the UK represents a significant step in the company’s broader strategy to become a comprehensive provider of sustainable energy solutions. If approved, this move could disrupt the traditional energy market, offering consumers innovative and environmentally friendly alternatives to conventional energy providers.
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