Tesla's energy business given the green light to supply electricity in the UK
Britain's energy regulator has approved an electricity supply licence for Tesla Energy Ventures Limited, a subsidiary of Tesla.
This means Tesla Energy Ventures will be able to provide power to households and businesses across Britain.
The company is expected to launch an electricity supply service in Britain similar to Tesla Electric, which was introduced in Texas in 2022.
After approval by the Gas and Electricity Markets Authority, Tesla will be allowed to supply electricity to homes.
However, the electricity licence means it would not be able to supply dual-fuel homes. It could supply a customer whose electricity tariff is separate from their gas supply.
Ofgem said the licence covers electricity supply activities only and is separate from an existing generation licence held by Tesla Motors Limited. Some Tesla owners use a Powerwall home battery which uses solar energy to charge their vehicles, and excess energy can be sold back to the grid.
The move opens the door for Tesla Energy Ventures to enter the retail energy market and compete with the likes of Octopus Energy and British Gas, alongside its growing portfolio of battery storage solar and energy management technologies.
Approved: Britain's energy regulator has approved an electricity supply licence for Tesla Energy Ventures Limited, a subsidiary of Tesla
Ofgem said the application underwent a full assessment process between July 2025 and March 2026, in line with statutory licensing requirements.
Tesla Energy Ventures will be required to ensure consumer protection, fair treatment of customers, financial responsibility, billing transparency and operational capability.
The regulator said it would monitor compliance and 'may use its enforcement powers' under the Electricity Act 1989 and the Standard Licence Conditions, including issuing directions, imposing financial penalties or modifying licence conditions where necessary.
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This week's regulatory approval clears a key regulatory hurdle for Tesla as Musk seeks to expand the group's energy business alongside its electric vehicles.
Tesla Energy Ventures, the company’s Manchester-based energy subsidiary, first applied for the licence last summer.
Tesla sells home batteries, EV chargers and solar technology across Britain and already has a customer base for some of its offerings.
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