Tesla energy UK: Elon Musk's Tesla Energy Ventures gets provider licence to become UK electricity supplier
The tech giant known for electric cars and batteries could soon enter Britain’s energy market ⚡
- Tesla has been granted a licence by UK regulator Ofgem to supply electricity to homes and businesses across Britain
- The move could eventually allow Yorkshire households to switch their energy supplier to the company owned by Elon Musk
- Tesla already supplies electricity in parts of the US, where tariffs often link to home batteries, solar panels and electric vehicles
- It is unclear whether Tesla’s potential UK tariffs would be cheaper than existing suppliers
- The decision has sparked criticism from campaign group Best for Britain over Musk’s political activities
Households in Yorkshire could soon be offered electricity by the world’s richest man, Elon Musk.
Musk’s Tesla company has been granted a licence to supply electricity to homes and businesses across Britain, opening the door for the tech giant to enter the competitive UK retail energy market.
The licence was issued by energy regulator Ofgem after a seven-month review and allows Tesla’s subsidiary, Tesla Energy Ventures, to sell power directly to domestic and non-domestic customers in England, Wales and Scotland.
But could Tesla really become a new energy supplier in Yorkshire, and would Musk’s tariffs actually be cheaper or greener than what’s already available?
What does Tesla’s new licence mean for energy customers?
The new licence means Tesla now has legal permission to sell electricity to British households and businesses.
It does not mean the company will immediately start signing up customers, but it does give the firm the ability to launch a supply business in the UK if it chooses to do so.
Energy companies must obtain a licence from Ofgem before they can operate, proving they can run a stable business and comply with strict consumer protection rules.
Tesla has been involved in the UK energy sector since 2020, when it received approval to generate electricity, but the new licence is a significant step further, allowing it to act as a full retail supplier.
If the company launches a tariff, Yorkshire households could theoretically switch to Tesla in the same way they currently switch between existing suppliers.
Could Tesla offer cheaper electricity?
Whether Tesla will actually offer competitive prices remains unclear.
In Texas, where Tesla already supplies electricity, the company operates a tariff linked to its battery and solar technology. Customers with Tesla Powerwall batteries can store electricity when it is cheap and sell excess power back to the grid.
Rather than focusing purely on low unit prices, Tesla’s model tends to revolve around energy technology and flexible usage.
That means UK customers could see tariffs designed to work alongside home batteries, electric vehicles and solar panels, rather than a traditional fixed-price energy deal. If that happens, households without those technologies might not benefit as much.
Will Tesla’s energy be greener?
Tesla has long promoted renewable energy through its solar and battery products, and if it launches a UK energy supply service, it would likely emphasise renewable electricity and smart energy systems that help balance supply and demand.
But any electricity sold to homes would still ultimately come from the national grid, and like most suppliers, Tesla would need to purchase power from a mix of sources including renewable generators and conventional power stations.
The real difference may lie in how customers use and store electricity, rather than where every unit originates.
Why has the licence sparked controversy?
The approval has triggered criticism from some campaigners, largely linked to the political activities of Tesla’s chief executive, Elon Musk.
Campaign group Best for Britain said thousands of people used its online tool to object to the licence application last year.
Critics pointed to Musk’s support for former US president Donald Trump and far-right activist Tommy Robinson, as well as changes he made after acquiring the social media platform X (formerly Twitter).
UK Energy Secretary Ed Miliband has previously described Musk as a “dangerous person”, further fuelling debate about the company’s role in Britain’s energy market.
But Ofgem stressed that licensing decisions focus on companies, not individuals.
Could the Government block Tesla from supplying power?
At this stage, the licence has already been granted and took effect this week, and the Department for Energy Security and Net Zero says Ofgem has the sole legal responsibility for assessing energy supply licence applications.
While the Energy Secretary does have powers to veto certain types of licence, those powers do not apply to the one Tesla applied for.
That means the main barrier to Tesla entering the UK retail energy market is no longer regulatory approval, but whether the company decides it is commercially worthwhile.
For Yorkshire households, that means a Tesla energy tariff could one day appear alongside existing suppliers on price comparison websites.