Tesla Energy Ventures has received approval from the UK energy regulator Ofgem to supply electricity to households and businesses across England, Scotland, and Wales. The licence, effective from March 11, 2026, allows the company to replicate its Texas electricity model despite public opposition linked to Elon Musk's political activities. This marks a key step in Tesla's expansion into the UK energy market after years of building infrastructure.
On March 11, 2026, Ofgem granted Tesla Energy Ventures Limited an electricity supply licence, enabling it to sell power directly to domestic and non-domestic customers throughout Great Britain. The regulator confirmed the application met all statutory requirements following an assessment from July 2025 to March 2026, emphasizing compliance with consumer protection, billing transparency, and other market conditions. Notably, the licence excludes dual fuel contracts combining electricity and gas.
Tesla's move builds on its established presence in the UK energy sector. The company obtained an electricity generation licence in June 2020 and has since deployed large-scale battery storage, including the 196 MWh Pillswood project near Hull, which became Europe's largest battery in late 2022. Tesla has partnered with Octopus Energy to provide the Tesla Energy Plan for Powerwall owners, connecting them to a virtual power plant network. In December 2025, Tesla signed a 1 GWh, 500 MW Megapack project with Matrix Renewables in Eccles, Scotland, described by Tesla VP Mike Snyder as a “landmark project” to store excess wind energy.
The approval faced significant opposition, with over 8,400 public comments submitted via a Best for Britain campaign, citing Elon Musk's political activities and misinformation as reasons to disqualify Tesla. Musk's support for Donald Trump, his brief role in the “department of government efficiency” until quitting in May 2025 over a tax bill dispute, and other interventions have contributed to backlash. UK Tesla vehicle sales declined 37% in February 2026 to 2,422 units from 3,852 the previous year, per the Society of Motor Manufacturers and Traders, with market share at 1.34%. Electrek reported a 60% year-over-year drop in mid-2025.
Tesla aims to mirror its Texas Electric model, offering 100% renewable power, low-cost charging for EVs, and credits for Powerwall owners exporting energy to the grid via Autobidder AI. The company has paid Powerwall owners $10 million through virtual power plants globally. Tesla was approached for comment but did not respond.
