Tesla (NASDAQ:TSLA), the company led by Elon Musk, has been cleared to begin supplying electricity directly to households in the United Kingdom after receiving approval from the country’s energy regulator on Thursday. The move introduces a new competitor to the market at a time when consumers are increasingly concerned about rising energy bills.
Regulator Ofgem confirmed that Tesla Energy Ventures, a Tesla subsidiary, has been granted a licence to operate as an electricity supplier following a regulatory process that began last July.
The approval paves the way for the Texas-based company to expand its energy business in Britain, where it aims to use its solar power and battery storage technologies to compete with established providers such as Octopus Energy, British Gas and EDF.
Another Tesla unit, Tesla Motors Limited, already holds a licence to generate electricity in the U.K. Some Tesla electric vehicle owners in the country currently use Powerwall home battery systems that store solar energy to charge their vehicles, with excess electricity capable of being sold back to the grid.
Energy prices have climbed since the outbreak of the Iran conflict, increasing concerns among British households about the cost of power.
Most households in the U.K. remain protected from the immediate impact of higher gas prices on heating and electricity through regulated tariffs that run until July. However, if the conflict persists beyond that period, the government may face mounting pressure to introduce additional support measures.
Tesla’s vehicle sales in Britain have weakened in recent years. In 2025, deliveries dropped 8.9% compared with the previous year, amid stronger competition from lower-priced Chinese automakers and a backlash among some consumers toward Musk’s political stance.