Tesla is taking its energy ambitions across the Atlantic. The company has applied to the UK’s energy regulator, Ofgem, for a license to supply electricity to homes in England, Wales, and Scotland. If approved, it would put Tesla in direct competition with Britain’s largest utilities and mark a major step in its plan to power not just cars, but households too.
The application was filed by Tesla Energy Ventures Limited, based in Manchester, and signed by Andrew Payne, Tesla’s head of energy for the EMEA region. It’s not uncharted territory, in Texas, Tesla Electric already supplies power to residential customers, combining renewable generation with battery storage and smart grid technology to give homeowners more control over energy use and costs.
Tesla’s energy business is already growing fast. Last year, revenue from solar, batteries, and other energy products surged by $1.5 billion a 93 percent jump from the year before. The company’s push into the UK energy market fits neatly into its broader goal of building an interconnected clean energy ecosystem that stretches from the grid to the garage.
This move has been in the works for some time. In 2023, Tesla posted a LinkedIn job listing seeking a head of operations to run Tesla Electric in the UK, signaling its intent to establish a strong foothold in the market. The listing explained that the venture was designed to “accelerate the transition to sustainable energy” by making electricity supply simpler and smarter.
“We believe strongly that simplifying and improving the customer experience around retail electricity and virtual power plants is necessary to drive significant adoption amongst consumers. Delivering a seamless, simple customer experience will ensure that small scale residential flexibility can be fully utilized to support the transition of the entire electricity grid to 100% renewables.”
The timing is significant. Tesla’s automotive sales have seen a sharp decline, with UK sales in July down 60 percent year-over-year and European sales falling 22 percent. Demand for the company’s best-selling Model Y and Model 3 has softened, while premium models, including the Cybertruck, have taken even steeper hits. With competition from Chinese EV makers growing, the energy sector offers Tesla a way to diversify its revenue and reduce its reliance on vehicle sales.
For UK EV owners, Tesla could soon be more than the name on their car. A single provider for home electricity, charging, and energy storage could bring greater convenience, seamless integration, and cost-saving opportunities. If Ofgem gives the green light, British households may soon see Tesla’s logo not just on their driveway but on their electric bill.
Source: CNN