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Tesla Seeks Approval to Supply Power to UK Homes

ByYasmeeta Oon

Aug 11, 2025

Tesla Seeks Approval to Supply Power to UK Homes

Tesla has applied for a licence to supply electricity to homes and businesses in the UK, setting the stage for a potential challenge to the country’s major energy providers. If the application is approved by energy regulator Ofgem, the company could begin operations in England, Scotland and Wales as early as next year.

While Tesla is best known for its electric vehicles, the company also operates a solar energy and battery storage business. The application, signed by Andrew Payne, head of Tesla’s European energy operations, was submitted late last month. The move mirrors Tesla’s operations in Texas, where its electricity service allows EV owners to charge their cars at lower rates and earn payments for feeding excess energy back into the grid.

Building on a UK Customer Base

Tesla has sold more than 250,000 electric vehicles in the UK and installed tens of thousands of home storage batteries. This established customer base could provide the company with a significant advantage if it enters the electricity market. Ofgem typically takes up to nine months to process applications for energy supply licences, meaning a decision could arrive in time for a 2025 launch.

The move into energy comes as Tesla faces declining EV sales in Europe. In July, UK registrations fell by nearly 60 percent, while sales in Germany dropped by more than 55 percent. Across ten key European markets, Tesla’s sales were down 45 percent during the month. The company is also contending with growing competition from Chinese manufacturer BYD. At the same time, Musk’s political activities in the US and Europe have drawn criticism from some customers in the UK, Germany and Italy.

What The Author Thinks

Tesla’s plan to enter the UK energy market could help counter falling EV sales and diversify its revenue streams. However, competing in a tightly regulated and competitive sector will be no small task. Success will depend on how effectively Tesla can leverage its brand loyalty while avoiding political distractions that risk alienating parts of its customer base.


Featured image credit: Heute

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Yasmeeta Oon

Just a girl trying to break into the world of journalism, constantly on the hunt for the next big story to share.

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