When Tesla paid us a visit prior to the launch of the Powerwall 3, they mentioned that Tesla Electric would soon be coming to the UK, and it’s on track for 2025. This exciting development promises to change how we manage our energy with features targeting a similar audience to Octopus Energy’s, which is to say home energy enthusiasts, along with providing big benefits for Tesla customers.
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Everything we know about Tesla Electric UK
What is Tesla Electric?
Tesla Electric already exists in the USA, which is what the information in this article is based upon. It’s set to be an innovative energy service that offers UK homeowners the chance to let Tesla manage and optimise their energy systems or take control themselves. This service is designed to enhance your energy efficiency, maximise your earnings, and make use of 100% renewable energy.
Key Features of Tesla Electric in the USA
- Energy Management: Tesla Electric offers two modes of energy management. You can either let Tesla adjust your energy usage according to market changes or take control yourself.
- Tesla Product Integration: If you have a Powerwall 2 or 3, you can optimise earnings and get rewarded for sharing electricity with your community (i.e., paid export). If you own a Tesla vehicle, you can add unlimited charging to your plan at a fixed monthly rate.
- 100% Renewable Energy: Tesla claims that Tesla Electric uses 100% renewable energy.
Tesla Electric USA Plans: Fixed and Dynamic
Tesla Electric offers two plans:
Tesla Electric Fixed:
- Duration: A 12-month plan that provides clean electricity at a competitive price with a lower off-peak rate.
- Off-Peak Hours: From 12 a.m. to 4 a.m., energy costs are lower. Tesla car owners enjoy extended off-peak hours from 12 a.m. to 6 a.m..
- Virtual Power Plant Participation: If you have a Powerwall, you can participate in the Tesla Virtual Power Plant and reportedly earn approximately $400 per year for each Powerwall enrolled. This could significantly impact your payback period, though at the cost of increased battery degradation. It does seem as though Tesla’s warranty commitment of 80% capacity at the end of 10 years still applies regardless.
Tesla Electric Dynamic:
- Flexibility: A month-by-month plan designed to optimise savings with competitive day rates and peak rates during higher demand periods. Similar to dynamic time-of-use tariffs.
- Battery Optimisation: This plan allows you to leverage battery storage to minimise costs during peak periods, much like Octopus Flux.
We would expect both to translate more-or-less directly in their functionality to the UK market, as differences in the USA and UK energy grids and markets shouldn’t impact this.
What is the Tesla Virtual Power Plant?
The Tesla Virtual Power Plant is a program that allows Powerwall owners to contribute to grid stability during high-demand periods. Here's how it works:
- Eligibility: Must own a Powerwall.
- High-Demand Events: By signing up, you give the program permission to use your stored energy during high-demand periods or events. In return, you'll receive payments, making your energy work for you.
- Collaborative Energy Management: All Powerwalls in each area collaborate to balance and power the grid. This is particularly useful during events like festivals or sudden spikes in electricity demand.
Example: If you live near Glastonbury, during festival season, electricity demand surges. This counts as a high-demand event. In Southern California, participants have earned $58 per event, although it's unclear what defines an event in the UK.
How does Tesla Electric compare to UK tariffs?
In the UK, Tesla Electric’s offerings are similar to tariffs like Intelligent Octopus Go and Intelligent Octopus Flux. Here’s how they stack up:
Intelligent Octopus Go:
Offers competitive rates with extended off-peak hours for EV owners.
Intelligent Octopus Flux:
Optimises savings with dynamic pricing similar to Tesla Electric Dynamic.
What can Tesla Electric expect in 2025?
We eagerly await more details about Tesla Electric's UK launch and are excited to see how big of an impact this will have on the UK’s energy market, which hasn’t had a big shakeup since Octopus Energy hit the scene. The service is set to offer significant benefits to Powerwall customers, enhancing both energy management and financial returns.
Conclusion
Tesla Electric seemingly has the potential to revolutionise the way UK homeowners manage their energy consumption, though compared to the market in the USA, the UK energy market is more competitive when it comes to renewable support. It will be interesting to see if Tesla makes any adaptations to Tesla Electric based on this. With its focus on renewable energy, innovative management options, and integration with Tesla products, it offers a compelling alternative to existing energy solutions. As we approach 2025, we will keep our eyes peeled for more updates and insights from Tesla.
Along with this, it also makes the Tesla Powerwall 3 package notably more appetising, assuming the fixed rate for Powerwall’s is competitive. We installed the first in the UK and can comment that the features it currently ships with are already excitingly game-changing; the addition of compatibility with the upcoming Tesla Electric sweetens the deal. Especially given that it can potentially bring the payback period down a huge amount.
Stay tuned for more information as Tesla Electric prepares to make its UK debut by signing up for our newsletter and even subscribing to our YouTube channel, where we will cover its full UK release as soon as we can. For those interested in optimising their energy usage and contributing to a sustainable future, Tesla Electric could be the perfect fit.
For personalised advice and more information about Tesla Electric and Powerwall installations, contact our team at Spirit Energy. We’re here to help you navigate the future of energy with Tesla.
