Tesla, Elon Musk’s company, is set to disrupt the British energy market with its electricity sales to consumers.
A job posting revealed that Tesla was developing plans to register with the industry regulator as an electricity provider and launch a “retail electricity product” in the UK.
The company is looking to hire a senior energy executive for its UK operations of Tesla Electric.
The service would allow UK residents to buy stored energy and sell it to them at peak times.
The Powerwall battery can be programmed to charge overnight, when electricity is cheaper and then release the energy during the day when purchasing directly from the grid becomes more expensive.
In an advertisement for the position, located in London or Manchester it is stated that Tesla wants to “support the transformation of the entire electrical grid to 100% renewables”, by using more home batteries.
Tesla is known for its electric car but it also sells home battery that cost about £9,500. According to an industry source, between 10,000 and 20,000 batteries have been installed in UK homes.
Ofgem’s plans for electric vehicles that can sell electricity to the grid will allow Tesla owners to eventually take advantage of the service.
Mr Musk earlier this year laid out a “masterplan” to lead the global effort to eliminate fossil fuels . This included moving people towards electric cars, increasing renewable energy generation massively and switching households over to heat pumps.
Tesla launched a utility energy in Texas in December. It promised to save homeowners money by selling electricity to the grid from their batteries during peak hours and buying it back at a lower price.
The company’s Texas off-peak rate is about a third lower than the standard rate charged by other energy providers. Some users reported earning more than $100 by selling electricity on days where a heatwave puts additional strain on the unreliable grid of the state.
Tesla says that new owners of electric vehicles who sign up for the plan will also be able to charge them overnight for free during the first year. This saves the company around $360.
The “virtual plant” system eliminates the need for coal and gas production during peak hours when renewable energy sources are unable to meet demand. Instead, it pulls electricity from people’s homes.
The Tesla app allows users to manage their bills and track their consumption.
In the job advertisement for Tesla, it is stated that the company wants to apply to Ofgem to obtain an electricity supply license. This licence allows utilities to provide energy to both domestic and non-domestic properties. Gas distribution is regulated separately by the gas providers.
In the advertisement, the company states that it is looking for candidates who have “demonstrated a track record of delivering retail energy programmes and a healthy scepticism towards the status quo”.
Tesla flirted in the past with the UK’s energy market. The carmaker launched an Octopus Energy electricity plan in 2020. However, it pulled out of the deal in early this year as a sign that it planned to launch its service. It has also been granted a licence to generate electricity, allowing it to sell commercially.
Musk said earlier this year that Tesla will manufacture and sell their own heat pumps. Heat pumps are considered crucial to the transition of households from gas-powered heating to electricity.
The entry of the company comes after two years in turmoil for Britain’s electricity providers. The rising wholesale costs caused dozens of energy providers to fail, and a cap on the price of bills has led stagnant competition between providers.
Tesla has not responded to our request for a comment.