Relatable much? If you’re tired of high energy costs draining your EV budget, Tesla’s move to supply power in Britain could be your savior, straight from their recent Ofgem application.

Tesla, the electric vehicle giant led by Elon Musk, has applied for an electricity supply license in Great Britain, positioning the company to deliver power directly to homes and businesses as early as next year. This move expands Tesla’s energy ambitions beyond the US, potentially benefiting owners of its cars and home batteries by integrating vehicle charging with household energy management.

Application Process and Timeline

Tesla Energy Ventures, the company’s Manchester-based subsidiary, submitted the application to Ofgem, Great Britain’s energy regulator, last month. The notice appeared on Ofgem’s website, marking a formal step toward enabling Tesla to supply electricity across England, Scotland, and Wales, reports The Guardian. Ofgem’s assessment could take up to nine months, delaying any launch until at least mid-2026. Andrew Payne, who has led Tesla’s European energy operations since 2016 and oversees a team of over 60, signed the application. This follows Tesla’s earlier entry into the UK energy sector in 2020, when it obtained a license to generate electricity.

Focus on Tesla Product Integration

The new service, likely branded as Tesla Electric, may prioritize consumers who already own Tesla products like electric vehicles or Powerwall home batteries. These batteries store energy from solar panels or the grid during off-peak hours, allowing users to reduce costs and manage power efficiently. In the US, Tesla’s Texas-based electricity supply, launched in 2022, lets owners charge cars at lower rates and earn payments for exporting surplus solar or stored energy back to the grid. A similar model in the UK could create seamless ecosystems for EV owners, combining vehicle charging with home energy optimization. However, the license covers only electricity, excluding households on dual-fuel contracts that bundle gas and power.

Challenges Amid Declining EV Sales

This expansion arrives as Tesla faces headwinds in Europe, including a sharp drop in UK car sales. Registrations fell nearly 60% in July, from 2,462 units in 2024 to just 987, shrinking Tesla’s market share to 0.7% from 1.67%. Year-to-date sales through July 2025 declined 7%, amid broader scrutiny of Musk’s political involvements in the UK, Germany, and France, as well as his shifting ties with figures like Donald Trump. Building on that, Tesla’s push into energy supply could diversify revenue streams, leveraging its existing UK sales of Powerwalls and home chargers to stabilize operations during automotive slowdowns.

Regulatory and Operational Implications

Gaining the license would align Tesla with virtual power plant concepts, where aggregated home batteries contribute to grid stability. This raises questions about regulatory adaptations, as Ofgem evaluates how Tesla’s model fits existing frameworks. For EV enthusiasts, it promises economic advantages, such as optimized charging tied to dynamic pricing, but depends on Ofgem’s approval timeline and competitive energy market dynamics. Tesla’s experience in Texas provides a blueprint, yet UK-specific rules on exports and incentives will shape outcomes. This development underscores a trend where automakers evolve into full-service energy providers, blending mobility with sustainable home power solutions.