Tesla Energy Ventures, a Manchester-based energy subsidiary of U.S. electric car manufacturer Tesla, has formally applied to Britain’s energy regulator, Ofgem, for an electricity supply licence.
According to a notice published on the watchdog’s website, the application was signed by Andrew Payne, who has run Tesla’s energy business in Europe since 2016.
Assuming Payne’s application is successful, Tesla will, within the coming months, add England, Scotland and Wales to the energy supply business it currently operates in the U.S.
However, it’s understood that Ofgem can take up to nine months to assess an application.
Branded Tesla Electric, the company’s prospective UK energy venture is expected to provide electricity to domestic and business premises and could focus on supplying electricity to consumers who own Tesla products, including cars or batteries.
In addition to electric cars and home chargers, Tesla sales in the UK include home storage batteries called Powerwalls that can be charged by solar power or from the grid at off-peak times to UK households.
Tesla already operates a similar business in Texas, where customers can charge their cars affordably and pay them for selling excess energy - from solar panels or stored in their Powerwalls - back to the grid.
This “virtual power plant” model is expected to be replicated in the UK, with the promise of helping customers save money on their bills.
However, it would not work for households on dual-fuel contracts because the company is only applying for an electricity licence.
Tesla’s entrée into energy in the UK is expected to offset dwindling electric car sales for the company across Europe.
Based on data from the main industry body, Tesla sales in the UK more than halved last month, with only 987 new Teslas registered in the UK in July – down almost 60% on the 2,462 registered in July 2024.
This means Tesla’s UK market share shrank to 0.7% in July, from 1.67% a year ago.
Year to date, Tesla sales in the UK are down 7%.
The fall in Tesla car sales coincides with heavy criticism faced by co-founder and CEO Elon Musk for his [now fractured] relationship with U.S. President Donald Trump, and his interference in politics in Germany, France and the UK.
However, despite dwindling car sales in Europe, Tesla already has a substantial customer base in the UK, with over 250,000 cars on the road and tens of thousands of Powerwall batteries installed.
This could give the company a head start in building a network of connected energy sources.
In anticipation of its Ofgem application being successful, Tesla - which has held a wholesale generation license in the UK since 2020 - has been actively hiring for energy operations staff.
However, the company has not applied for a gas supply licence, meaning that most households would still need to use a separate provider for their gas needs.
