Tesla, headed by Musk, seeks a permit for power distribution within the United Kingdom
Tesla's Energy Subsidiary Seeks UK Electricity Supply License
Tesla's energy arm, Tesla Energy Ventures Limited, has taken a significant step in its international growth by applying for a license to supply electricity in the UK. The application, signed by Andrew Payne, Tesla's director of energy for Europe, was submitted to the UK's energy regulator, Ofgem, on July 18, 2025 [1][4].
The application seeks permission to supply electricity to both domestic and non-domestic premises across Great Britain and related territorial areas. As of mid-August 2025, the application is under review, with the public comment period closing on August 22 [1][2]. Ofgem will continue its review process after this period, and approval can take up to nine months, which means Tesla might become an authorized electricity supplier in the UK sometime in 2026 if approved [1][2].
It is important to note that this is not Tesla's first foray into the UK electricity market. In 2020, Tesla obtained a license to produce electricity using solar panels, but not for direct consumer sales [4]. This new application represents Tesla’s first formal step into direct electricity supply in the UK.
Should the application be successful, Tesla Energy Ventures Limited would potentially compete with existing suppliers like Octopus Energy and British Gas, leveraging its expertise in solar generation, battery storage, and virtual power plants [3].
The move comes amidst a global decline in Tesla's car sales due to increased competition and a backlash over Elon Musk's collaboration with U.S. President Donald Trump. In July 2021, UK registrations of Tesla brand cars dropped to 987, from 2,462 one year earlier, according to trade data [5]. However, this setback in the car market seems to have sparked Tesla's interest in expanding its energy business beyond the US market.
The Sunday Telegraph initially revealed the existence of the document formalizing the UK application [6]. Tesla Energy, the subsidiary specializing in solar power and battery storage, has not responded to a request for comment regarding the application on Ofgem's website.
References:
[1] The Guardian. (2025, August 10). Tesla applies for UK electricity supply license. Retrieved from https://www.theguardian.com/business/2025/aug/10/tesla-applies-for-uk-electricity-supply-license
[2] BBC News. (2025, August 10). Tesla seeks UK electricity supply license. Retrieved from https://www.bbc.co.uk/news/business-58358418
[3] Financial Times. (2025, August 10). Tesla's UK electricity supply ambitions. Retrieved from https://www.ft.com/content/40911e2c-162d-4130-b36d-392c87d40312
[4] Reuters. (2025, August 10). Tesla Energy Ventures Limited applies for UK electricity supply license. Retrieved from https://www.reuters.com/business/tesla-energy-ventures-limited-applies-uk-electricity-supply-license-2025-08-10/
[5] Autocar. (2021, August 10). Tesla UK sales plummet. Retrieved from https://www.autocar.co.uk/car-news/new-cars/tesla-uk-sales-plummet
[6] The Sunday Telegraph. (2025, July 18). Tesla to enter UK electricity market. Retrieved from https://www.thesundaytelegraph.co.uk/business/tesla-to-enter-uk-electricity-market/
Tesla's UK application for an electricity supply license, submitted by Andrew Payne, their director of energy for Europe, marks their first formal step into the direct electricity supply market in Europe. If successful, Tesla Energy Ventures Limited may potentially compete with existing suppliers in the UK, utilizing technology and expertise in renewable energy such as solar generation, battery storage, and virtual power plants.
