What will Elon Musk’s Tesla Electric powering UK homes mean for energy bills and Powerwall customers - news
Tesla’s UK energy move could put money back in your pocket ⚡
- Elon Musk’s Tesla has applied for a UK energy supply licence, aiming to rival British Gas and Octopus Energy
- The company could start powering homes and businesses in England, Scotland and Wales as early as next year
- In Texas, Tesla Electric offers cheaper EV charging and pays customers for surplus energy fed back to the grid
- Savings may be greatest for Tesla EV, solar and battery owners, though competitive tariffs could benefit more households
Elon Musk’s Tesla could soon be lighting up your home, as the tech giant eyes a dramatic push into the British electricity market.
The company has applied to regulator Ofgem for an energy supply licence, paving the way to take on established providers such as British Gas and Octopus Energy.
If approved, Tesla could begin supplying homes and businesses in England, Scotland and Wales as early as next year.
The move comes as Tesla’s electric vehicle (EV) sales slide in Europe – UK registrations plunged almost 60% in July compared with a year earlier – prompting the company to diversify beyond cars into energy infrastructure, solar power and robotics.
But what would it mean for UK energy bills if the play were to come off? Would Tesla’s approach to energy mean lower or higher prices for consumers? Here is everything you need to know about it...
How does Tesla Electric work?
Already a household name for electric cars, Tesla has been expanding its energy arm globally, running a supply business in Texas for the past three years.
There, customers benefit from discounted rates for charging its cars, sometimes during off-peak hours, and those with Tesla Powerwall batteries or solar panels can even feed unused energy back to the grid and get paid for it, offsetting their bills even more.
Tesla’s tech can also shift home energy use to cheaper times of day, reducing costs automatically.
Tesla has held a UK electricity generation licence since 2020, but the new application signals a step change: from producing power to directly supplying it to households.
What would it mean for energy bills?
Tesla’s model could appeal to UK households looking to offset rising bills, and Susannah Streeter, head of money and markets at Hargreaves Lansdown, said the firm could have a ready-made audience.
“It still boasts significant car ownership in the UK and has sold thousands of home storage batteries here,” she said. “This could mean Tesla Electric has access to a willing customer base.”
If Musk’s energy gamble works here as it has in Texas, UK homeowners could be looking at a future where their car, solar panels and home battery work together to lower costs – and maybe even turn a profit.
But Tesla Electric is unlikely to slash everyone’s bills, and benefits could be heavily geared towards existing Tesla hardware owners, rather than all households.
For households without that tech, the savings might be smaller but still possible if Tesla undercuts rivals to win market share.
But while initial tariffs might be competitive to attract customers, but over time could align with the market unless backed by ongoing tech-driven savings.
Bear in mind also that energy prices still depend on wider wholesale market conditions, which Tesla can’t fully control.
What do you think – could Tesla really drive down UK energy bills? Share your thoughts in the comments section.