Tesla launches its UK Energy Plan, hints at upcoming Virtual Power Plant project

(Credit: Energy Octopus UK)

Tesla has launched its Energy Plan for the United Kingdom. This marks one of the first big moves Tesla Energy has taken to become a viable a utility service option in the country.

IT professional and environmentalist Mark W. Tebutt (@mwt2008 on Twitter) received a very intriguing email from the EV automaker about its Tesla Energy Plan. According to the screenshot @mwt2008 shared, Tesla has partnered with Octopus Energy in the UK to administer its energy plan to customers.

Octopus Energy has a lot in common with Tesla, including its disruptive nature. The UK-based energy service provider wrote on its official website that it entered the industry to “disrupt the status quo with energy that’s good for the planet, good for your wallet, and honestly, good for your soul.”

In the UK, energy suppliers set a default price, called tariffs, for services. The Tesla Energy Plan in the UK offers a 24/7 import and export (charging and discharging) rate of 8p(pence)/kWh to Tesla vehicle owners and 11p/kWh for those who are non-Tesla vehicle owners, as per the electric car maker’s FAQ page for its Energy Plan.

According to Octopus Energy, the Tesla Energy Plan has the lowest import flat rate in the UK energy market as of October 2020. UK Power stated that the average tariff is 14.40p/kWh in the UK. The tariff can vary depending on the location.

The Energy Plan works with Tesla’s Powerwall, solar panels, and Solar Roof products. Although Tesla Solar Roof is currently not available for purchase in the UK. The email did not mention if the Energy Plan worked exclusively with Tesla products or if customers with solar panels from other companies could use the service as well.

Tesla appears to have designed its Energy Plan to work on two levels in the UK. First, it offers Tesla’s products, notably its Powerwall home battery, to customers. Second, it will help build Tesla’s “large” UK Virtual Power Plant through the Powerwalls.

Octopus Energy broke down the key benefits of the Tesla Energy Plan. They are listed below.

  • Power your home and EV with 100% clean energy
  • Reduce your electricity bills
  • Support the grid when it needs it most
  • Reduce reliance on the grid
  • Protect your home from power cuts
  • Be part of Tesla’s first UK Virtual Power Plant
  • Receive introductory offers

In May 2020, Tesla filed to become a full-blown energy provider in the UK. The Tesla Energy Plan it released in conjunction with Octopus Energy may be the first fruits of that application.

Tesla’s Energy division has been lying in the background of the company’s EV manufacturing department for some time. It has made some subtle waves in the US’ residential battery storage market over the years, and high-profile projects like the Hornsdale Power Reserve have caught headlines, but Tesla Energy has really started showing its worth this year.

Since the beginning of the year, Solar Roof V3 installations have been ramping, and the company’s flagship energy storage unit, the Megapack, has become a key component of massive projects such as the giant battery farm in Moss Landing. In its Q3 update letter, Tesla reported reaching record deployments of 759 MWh, and in the company’s earnings call, Elon Musk noted that Solar Roof will prove to be a killer product next year.

Tesla launches its UK Energy Plan, hints at upcoming Virtual Power Plant project
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