Tesla (TSLA) has launched its new “Tesla Energy Plan” to offer new low charging tariffs to customers in the UK by creating a virtual power plant with solar and Powerwall.

Earlier this year, we reported on Tesla taking its first step in becoming an energy provider in the UK.

The company aimed to use its “Autobidder” platform to take advantage of distributed energy assets to provide new services.

In June, Tesla was approved as a electric utility in the UK.

Now they are officially launching the Tesla Energy Plan in partnership with Octopus Energy.

Tesla describes the plan on its website:

The Tesla Energy Plan is an energy tariff specifically designed for homes with solar and Powerwall installed, offering 100% clean electricity and savings of up to 75% compared to Big 6 tariffs, based on electricity consumption of 8,000 kWh/year. Electricity bills will differ based on usage.

The idea is similar to what Tesla has done with other electric utilities around the world, like in Vermont with Green Mountain Power, by packaging the advantages of energy storage into a bundle with the electric utility.

With enough Powerwalls on the network, it creates a virtual power plant (VPP) that provides services to the grid and lowers cost for customers.

Tesla writes:

Tesla’s authorized retail partner, Octopus Energy, administers the plan. By joining the Tesla Energy Plan, you will become part of Tesla’s UK Virtual Power plant. Your Powerwall will be managed by Tesla and connected to a growing network of homes across the UK. The plan is designed to help support the energy needs and stability of the electricity grid — while providing you with ongoing savings through the most competitive rates in the market.

What is different with the new Tesla Energy Plan in the UK is that it directly targets Tesla vehicle owners and not just people who would want or already have a Powerwall and a solar power system.

In fact, Tesla is offering lower electricity rates in the virtual power plant for vehicle owners:

You are eligible for the £0.08/kWh tariff if you have:
• A Tesla vehicle
• Electric Vehicle Charger installed at your home or are able to have one installed
• Solar panels and Powerwall (or a home suitable for this)
• Residential electricity supply

You are eligible for the £0.11/kWh tariff if you have:
• Solar panels and Powerwall (or a home suitable for this)
• Residential electricity supply

Tesla claims that these rates could reduce users electricity bills by “up to 75% compared to Big 6 electricity supplier tariffs.”

The company lists all the benefits of the program:

• 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 Plan
• Receive introductory offers

Right now, the “Tesla Energy Plan” is only offered in the UK through retailer Octopus Energy.

Anyone with a Tesla Powerwall and solar power can jump onboard the program.

Recently, Elon Musk said that Tesla Energy, the energy division of the automaker, is becoming a distributed global utility, and it could even outgrow its automotive business.

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