- Energy regulator grants Tesla Energy Ventures license to supply electricity
- Reports claim Tesla is looking to replicate its energy supply business in Texas
- ‘Virtual power plant’ could allow solar owners to feed back into the grid
British energy regulator Ofgem has granted Tesla Energy Ventures, a unit of Tesla, a license to supply electricity to domestic and commercial customers across the United Kingdom.
According to PakGazette, the move would allow Tesla to expand its business and use its experience with a similar setup in Texas, which uses its solar and battery storage business to compete directly with existing energy suppliers in the United Kingdom, such as Octopus Energy, British Gas and EDF.
Tesla does not provide data on the number of Powerwall home battery storage systems it has sold to UK residents, but the company claimed it had installed one million worldwide by the end of last year.
Article continues below.
The units, which feature a large battery storage system that draws on grid power when it is cheapest, are not only touted to help reduce energy bills but also to protect in the event of a blackout.
When combined with solar panels, users can power homes or workplaces, charge electric vehicles, and even return excess energy to Tesla’s “Virtual Power Plant,” reducing the cost of energy and allowing some homeowners to generate income.
Currently, Tesla’s “virtual power plant” for Powerwall owners is offered through Octopus Energy, but this would change with the recent Ofgem ruling.
Analysis: a big step in times of energy uncertainty
Tesla’s electric vehicle sales have been falling globally, with particularly poor performance in the UK and Europe recently. According to the Society of Motor Manufacturers and Traders, Tesla sales in the UK fell 37% from 3,852 to 2,422 in February compared to the same period last year.
That said, it still has plenty of Tesla owners, many of whom are generally more willing to embrace new technologies. Its breakthrough in the energy sector could convince an increasing number of owners to install Powerwall and solar energy to reduce dependence on the grid and charge their vehicles more economically.
However, not everyone is convinced that Tesla has it so easy.
Adam Bell, former head of energy at the Department for Business, Energy and Industrial Strategy and now policy director at consultancy Stonehaven, told City AM that Tesla is entering a “heavily regulated market” where margins have been “reduced to the minimum possible” and where it faces competitors who “have already invested in new tariff offers”.
While most British households are “protected” from rising energy costs by price caps and feed-in tariffs, this will change in July when the next adjustment is expected and the government could be forced to intervene if the conflict in the Middle East continues to drive up prices.
Follow TechRadar on Google News and add us as a preferred source to receive news, reviews and opinions from our experts in your feeds. Be sure to click the Follow button!
And of course, you can also follow TechRadar on YouTube and tiktok for news, reviews, unboxings in video form and receive regular updates from us on WhatsApp also.
