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Tesla has secured a licence to supply electricity to homes and businesses in Great Britain marking a significant expansion of the company’s ambitions in the energy market.
Regulator Ofgem confirmed that Tesla Energy Ventures Limited has been granted an electricity supply licence under the Electricity Act 1989 following a seven month approval process.
The decision was formally approved by the Gas and Electricity Markets Authority and came into effect yesterday evening.
With the licence in place Tesla can now sell electricity directly to domestic and non domestic customers across Great Britain.
The move opens the door for the company to enter the retail energy market alongside its growing portfolio of battery storage solar and energy management technologies.
Ofgem said the application underwent a full assessment process between July 2025 and March 2026 in line with statutory licensing requirements.
As a licensed supplier Tesla Energy Ventures Limited must comply with all standard licence conditions governing the UK electricity market.
These include obligations covering consumer protection, billing transparency, operational capability, financial resilience and treating customers fairly.
Ofgem said the company will also be subject to ongoing regulatory oversight.
The regulator can use enforcement powers under the Electricity Act including issuing directions imposing financial penalties or modifying licence conditions if suppliers fail to meet their obligations.
Tesla already has a presence in the British power sector through generation activities.
A separate entity Tesla Motors Limited was granted an electricity generation licence in June 2020 allowing the company to operate energy generation assets.
However Ofgem said that licence was not relevant to the current approval process.
The new licence applies solely to electricity supply activities in Great Britain.
Tesla’s entry into the retail market comes as the UK energy sector undergoes rapid change driven by electrification distributed generation and the growth of battery storage.
What will Tesla offer?
Tesla’s energy division offers a range of products and services focused on generating, storing and managing electricity for homes, businesses and utilities.
At the household level the company installs solar panels and solar roof systems which allow homes to generate their own renewable electricity directly from sunlight. These systems can reduce reliance on the grid and lower energy bills by producing power for everyday household use.
A key part of the offering is Powerwall, a home battery that stores electricity generated from solar panels or imported from the grid. The stored energy can then be used later in the evening, during peak price periods or during power outages.
Tesla says the system can also help households optimise energy use by charging when electricity is cheap and using stored energy when prices rise.
Tesla also provides software and monitoring tools through its mobile app which track energy production, storage and consumption in real time.
For larger customers and utilities Tesla supplies grid scale battery storage systems, including the Megapack, which are designed to stabilise electricity networks and store renewable energy at large scale.
These batteries can help balance supply and demand and support the integration of wind and solar generation onto power grids.
Taken together Tesla’s energy services aim to create an integrated system where homes or businesses can produce renewable power, store it in batteries and manage how and when electricity is used or exported to the grid.
With the new UK electricity supply licence, these technologies could eventually be combined with retail electricity tariffs allowing Tesla to offer bundled energy services to British consumers.
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