Tesla Plans to Offer Domestic Electricity Sales in the U.K., According to Reports
Tesla, the American multinational corporation known for its electric vehicles and energy storage solutions, has applied for a license to supply electricity directly to UK homes and businesses, aiming to enter the household energy market as early as 2026 [1][2][3].
With its existing base of Powerwall batteries, home chargers, and over 250,000 Tesla vehicles in the UK, the company could potentially launch a "virtual power plant" network, storing excess energy from renewable sources and feeding it back to the grid during peak demand, potentially saving households money while supporting grid stability [4].
Tesla's entry into the UK energy market involves selling electricity directly to consumers, similar to its existing operations in the US where it has supplied power for the last three years [2]. If successful, Tesla Electric could offer customers competitive electricity rates and innovative energy solutions, potentially disrupting the current market dynamics [5].
However, the exact launch date for Tesla Electric in the UK has not been specified yet [1][2][3]. The decision by Ofgem on granting Tesla the license is pending with public consultations closing in late August 2025 [2].
Tesla Electric has already found success in Texas, where it offers low-cost EV charging and pays Powerwall owners for feeding excess solar or stored energy back into the grid [6]. The company has also partnered with solar provider Sunrun in Texas to offer a fixed-rate clean energy plan for homes [7].
Regarding the virtual power plant network, while Tesla’s broader business includes battery storage and solar solutions that could enable a distributed energy network, no explicit details about a virtual power plant network in the UK were mentioned in the available sources [1][2][5]. Tesla’s known VPP model in other markets involves aggregating home battery storage systems to balance grid demand, but any official UK VPP plans remain unconfirmed publicly as of now.
The move would represent a significant expansion of Tesla’s energy ambitions in Britain and potentially disrupt the current household energy market, competing with established energy suppliers like Octopus Energy and British Gas [5]. However, the application has met with public opposition, with thousands objecting to the company's role in supplying essential services, citing concerns over Elon Musk's political influence and suitability [2].
[1] Tesla to launch UK energy supply service
[2] Tesla's UK energy supply plans draw opposition
[3] Tesla applies for UK electricity supply license
[4] Tesla's Powerwall and virtual power plant network
[5] Tesla's UK energy supply plans explained
[6] Tesla's Texas clean energy plan
[7] Tesla and Sunrun partnership
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