Tesla has applied for a licence to supply electricity to British homes and businesses through the energy regulator Ofgem.
The application was filed last month by Andrew Payne, the head of energy for Tesla in EMEA, and comes as the firm already has a large potential customer base of 250,000 electric vehicles in the UK. Although the big energy companies have around 4-7.5 million customers.
If the company receives approval, it would mean that it could supply services across England, Scotland and Wales as early as 2026. A typical licence approval process by Ofgem can take up to nine months and is the first such application in several years.
Tesla provides a number of other services alongside it’s range of electric vehicles, including solar energy and battery storage solutions.
Potentially, it could be possible for the firm to provide holistic domestic renewable energy solutions, which incorporate specific tariffs for electric vehicles.
Octopus and other UK energy firms have recently been offering such solutions for domestic energy when combined with an electric vehicle.
Currently in the US, Tesla has piloted virtual power plant technology, and its EVs have potential for bi-directional energy transfer to homes through the Tesla Powerwall battery system.
But the company is still developing its vehicle-to-grid capabilities and energy flexibility, which CEO Elon Musk had originally said would be developed by 2025.
It comes as Octopus Energy recently partnered with Chinese OEM BYD and Zaptec to offer a holistic vehicle and energy deal, dubbed the Power Pack, for UK consumers.
The move comes as Tesla’s UK registrations fell last month, dropping by nearly 60%.
Less than a thousand – only 987 vehicles – were sold in Britain, and the firm also dropped by more than 55% to 1,110 in Germany, as well as 45% across 10 European markets that accounted for the majority of its sales across the European bloc in the first half of 2025.
