- Tesla plans to disrupt the UK energy market with a new household supplier.
- They aim to sell electricity, establish virtual power plants, and support the transition to 100% renewable energy.
- Tesla may assist customers with storing and selling electricity, reducing reliance on fossil fuels.
Tesla aims to disrupt the energy market in Britain by launching a new household supplier
Known for its electric cars, Tesla also operates an energy supply business in the US. Their plan? Sell electricity to homes and establish “virtual power plants” in the UK.
To make it happen, Tesla Electric, which provides electricity to Tesla product owners, is hiring an executive who questions the existing energy system. This person will oversee Tesla’s entry into the UK market and support the transition to 100% renewable energy.
How will it work?
Tesla might assist customers with Tesla Powerwall batteries, solar panels, or electric vehicles. They can store cheap electricity and sell it back to the grid when prices are high. This approach helps households avoid peak pricing during renewable electricity shortages and reduces reliance on fossil fuels.
In Texas, Tesla already offers household supply deals. For a limited time, they provided free overnight vehicle charging at home to customers who bought a Model 3 car. After the first year, the standard overnight charging rate is $1 per day.
Last year, Tesla received an electricity generation license from the UK energy regulator, Ofgem. This marked their initial entry into the British market. Speculation suggests Tesla might undertake large-scale battery storage projects, inspired by their success in Australia.
With the generation license, Tesla can create a virtual power plant by bringing together customers nationwide. Other energy suppliers like Octopus Energy and Ovo Energy already offer similar tariffs to households with batteries or solar panels.
Tesla’s long-term vision is to eliminate fossil fuels globally. Their “master plan” emphasizes electrification and smart power storage technologies. They believe a sustainable energy economy is technically feasible and requires less investment and material extraction compared to the current unsustainable system.
Tesla Electric’s focus is on reshaping the energy landscape in Britain and driving the transition to a cleaner and more sustainable future.