Tesla Energy Wins UK Licence to Supply Electricity

Tesla is expanding its presence in Britain’s energy market after regulators approved a licence allowing the company to sell electricity directly to homes and businesses.

The UK energy regulator Ofgem granted an electricity supply licence to Tesla Energy Ventures Limited on March 11, following an eight-month review that began in July 2025. The Manchester-registered company can now supply power to domestic and commercial customers across England, Scotland and Wales.

The move positions Tesla to compete with established suppliers such as Octopus Energy and British Gas, entering a market that has seen rising prices and growing interest in smart energy technologies.

Tesla’s entry could also open the door to smart electricity tariffs designed around home batteries and solar power, potentially allowing customers to store electricity when it is cheap and use it when prices rise.

Tesla’s expanding energy ecosystem

Tesla Energy is the company’s rapidly growing division focused on solar power, battery storage and electricity management. Its products include the Tesla Powerwall home battery, which stores electricity from solar panels or the grid for use later in the day.

The company has also developed PowerShare, a system that allows compatible Tesla vehicles to send electricity back to a home during outages or periods of high demand, effectively turning an electric vehicle into a backup power source.

At a larger scale, Tesla produces the Tesla Megapack — a utility-scale battery system used by energy providers to store large amounts of electricity and stabilise the grid. Megapack installations are increasingly used to store surplus renewable energy and release it during peak demand.

By entering the UK electricity supply market, Tesla could begin linking these technologies together — allowing households and businesses to generate, store and manage electricity within a single energy ecosystem.