Tesla is set to take on energy company giants with its own tariffs for domestic electricity supply. The company has applied to the official ‘watchdog’ Ofgem for approval to offer energy packages to  homes and businesses in England, Scotland and Wales.

There is no official comment from Tesla about the move yet, but it already offers innovative energy packages to consumers in Texas, where owners of the company’s EVs and Powerwall home batteries are able to charge at discounted rates and sell excess energy back to the grid at peak times – technology known as V2G.

Tesla’s arch rival in the car market is BYD, which has recently announced a deal with the UK’s biggest energy supplier, Octopus Energy, for a V2G package. It offers a leased BYD Dolphin car, a Zaptec Pro charger, and a smart tariff, all for £299 per month. Other car makers including Nissan, Kia and Renault are also known to be working on V2G packages which would risk making Tesla look behind the curve. 

V2G is see as key to the future ‘greenification’ of the energy grid as it helps smooth out the peaks and troughs which naturally occur when using renewable energy. When the grid is under pressure, the energy stored in your EV’s battery can be fed back to power homes and it charges back up when demand is low. 

With more than 250,000 Tesla cars and an estimated 10,000 Powerwalls in the UK, the company already has a sizable customer base. It is also looking to expand its solar panel business in the UK, meaning it could become a meaningful electricity generator by harnessing the power of customer’s batteries and panels.

Unlike the big rivals in the energy sector, Tesla has not applied to supply gas, meaning any customers would not be able to use the popular ‘dual fuel’ packages for UK homes. 

The application will take around eight months to be approved, meaning any Tesla power package would not be available until Spring 2026. 

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