London, United Kingdom. Elon Musk’s Tesla is set to begin supplying electricity to British homes after receiving a licence this week, entering the market as concerns rise over higher energy bills.
Ofgem approval and market entry
Britain’s energy regulator Ofgem said Tesla Energy Ventures, a unit of Tesla (TSLA.O), has been approved as an electricity supplier following a process that began last July.
The licence positions the Texas-based company for expansion in Britain, where it plans to use its solar energy and battery storage business to compete with household suppliers including Octopus Energy, British Gas (CNA.L) and EDF.
Existing operations and home energy systems
Tesla Motors Limited, another subsidiary, already holds an electricity generation licence in Britain. Some Tesla electric car owners use a Powerwall home battery that uses solar energy to charge vehicles, and excess supply can be sold back into the grid.
Energy price pressures and consumer protections
Energy prices have surged since the war in Iran, leaving British consumers worried about their bills. Most British households are protected until July from the immediate impact of higher gas prices on heating and electricity costs due to regulated tariffs, but the government will face pressure to provide support if the conflict continues beyond that period.
Tesla vehicle sales in Britain
Sales of Tesla vehicles in Britain have declined in recent years, falling 8.9% year-on-year in 2025 amid competition from cheaper Chinese brands and a consumer backlash against Musk’s political outlook.
How could Tesla’s entry as an electricity supplier affect your household energy options and costs?