Tesla has received approval to supply electricity directly to households in the United Kingdom after energy regulator Ofgem granted a supplier licence to its subsidiary, Tesla Energy Ventures, on Thursday.
The licence follows a regulatory process that began in July and opens the door for the company to enter Britain’s competitive retail energy market.
The Texas-based company led by billionaire Elon Musk plans to use its solar power and battery storage technologies to compete with established suppliers such as Octopus Energy, British Gas and EDF.
The move builds on Tesla’s existing presence in Britain, where another subsidiary, Tesla Motors Limited, already holds a licence to generate electricity.
Tesla’s entry could allow households with its Powerwall home battery systems to store solar energy, power their homes and sell excess electricity back to the grid.
The development comes as energy costs remain elevated following supply disruptions linked to the war in Iran, increasing concern among consumers over rising utility bills.
Although most households are shielded from immediate price spikes by regulated tariffs until July, the government could face pressure to extend support if the conflict continues.
Tesla’s expansion into energy supply also comes as its vehicle sales in Britain declined 8.9% in 2025 amid growing competition from lower-priced Chinese electric vehicle brands and criticism of Musk’s political views.