March 12, 2026 — London Ofgem, the UK energy regulator, granted an electricity supply licence to Tesla Energy Ventures Limited under the Electricity Act 1989, enabling the company to supply electricity to domestic and non-domestic customers in England, Scotland, and Wales. Tesla granted electricity supply license in Great Britain, marking a significant expansion of its energy business beyond vehicle sales.
The approval followed a full assessment process from July 2025 to March 2026 and came into effect on March 11, 2026. This builds on a previous electricity generation licence granted to Tesla Motors Limited in June 2020.
Approval Details
Ofgem confirmed the decision in a statement, noting:
The application underwent a full assessment process between July 2025 and March 2026 in line with statutory licensing requirements. With the licence in place Tesla can now sell electricity directly to domestic and non domestic customers across Great Britain.[1]
The licence applies solely to electricity supply activities and prohibits dual fuel contracts combining electricity and gas. Tesla Energy Ventures must comply with standard conditions on consumer protection, billing transparency, operational capability, financial resilience, and treating customers fairly.
Tesla’s Energy Expansion
Tesla granted electricity supply license in Great Britain positions the company to compete with suppliers like British Gas and Octopus Energy. The move allows integration of its products such as Powerwall home batteries, Megapack grid-scale storage, and Autobidder AI software for energy management.[2] Tesla aims to replicate its Texas model, offering low-cost renewable electricity to homes, businesses, and EV owners.[3]
In the UK, Tesla has deployed projects like the 196 MWh Pillswood battery near Hull and partnered with Octopus Energy for virtual power plants involving Powerwall owners. The licence could boost revenue from its growing energy division, which leads the global battery energy storage market.[4]
Market Context
The approval occurred despite over 8,400 public comments opposing it, primarily citing concerns about Elon Musk’s political activities; Ofgem evaluated based on technical merits.[5] Tesla granted electricity supply license in Great Britain amid a UK energy sector shift toward electrification and renewables. Tesla has sold over 250,000 EVs in the UK, though recent sales declined.[6]
As a licensed supplier Tesla Energy Ventures Limited must comply with all standard licence conditions governing the UK electricity market.[1]
Tesla granted electricity supply license in Great Britain was first reported via an X post citing The Guardian, with coverage from Financial Times and others.