Tesla has applied for a licence from the British energy regulator to supply electricity to homes.

The application, if approved by Ofgem, could see Elon Musk’s electric car and energy company enter the UK sector next year to take on major energy firms such as Octopus and British Gas.

The application, which was signed by Andrew Payne who runs Tesla’s European energy operations, was filed late last month, according to a report by the BBC, and is purely for electricity supply, not gas.

Ofgem can take up to nine months to process applications for energy supply licences, which could put Tesla Electric on track to go live in spring 2026.

The move follows months of work by Tesla to grow its UK energy team.

Alongside its EV business, Tesla also has a solar energy and battery storage business. In the US, Tesla Electric already supplies electricity to residential properties in Texas and also enables EV users to sell their surplus electricity back to the grid – known as ‘vehicle to grid’. Drivers don’t even need to own a Tesla product to be eligible and can use an app to manage the service remotely.

While Tesla is primarily known for its EVs in the UK and has sold over 250,000 cars here, the brand has long been seeking to enter the UK energy market as a supplier and first registered as a generator with Ofgem in 2020.

It’s already sold an estimated 10,000 ‘Powerwall’ home storage batteries here, which could boost its electricity supply business, and is believed to be looking to expand its solar panel business in the UK.

The new business is expected to focus first on EV drivers with Tesla vehicles, Powerwall batteries and solar panels, and will centre around innovative, money-saving services along with renewable energy systems. This is likely to include ‘vehicle to home’ technology, where customers use their car’s battery to power the house.

Tesla’s new push on its energy business in the UK comes as its EV sales continue to fall. In July, there were 987 Tesla cars registered, compared with 2,462 in the same month last year. The fall has been attributed to rising competition from other EV brands, especially China’s BYD, alongside Musk’s involvement in right-wing politics in markets such as the UK and Germany.