Smart Pension joins forces with Octopus Energy and Kensa to accelerate UK’s renewable energy transition

The move is part of a 15% allocation commitment to private markets within Smart Pension’s default fund and reinforces its commitment to long-term sustainable investment while helping the UK to accelerate the transition to a netzero economy. 

Smart Pension will invest 5% of its default fund in two flagship funds managed by Octopus Energy Generation – Sky (Octopus Renewables Infrastructure SCSp) and OETF (Octopus Energy Transition Fund SCSp), both of which carry the highest sustainability ratings.

This commitment will help finance a broad range of green energy projects, including the UK’s first investor-funded ground source heat pump network in South Wales, delivered by Kensa. The project will provide affordable renewable heating and hot water to 114 new homes at Parc Eirin and position ground source heat pump networks as an investable low-carbon utility. The homes will be part of the new generation of housing developments built without gas as the UK moves toward net zero.

As one of Europe’s largest renewable energy investors, Octopus Energy Generation brings 15 years of experience and a £7 billion portfolio of over 270 wind, solar, and battery projects across 21 countries to help turn pension savings into real-world solutions that cut emissions, reduce energy bills, and accelerate the global energy transition.

As part of the investment, Smart Pension’s 1.5 million members will have access to a range of materials, including case studies and carbon reporting, to help them better understand how their pension savings are making a real difference both financially and environmentally.

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Rachel Reeves, Chancellor of the Exchequer, said:

“Our reforms are about unlocking investment to deliver higher returns for savers, drive growth, and create good jobs. This means more money in the pockets of working people, our Plan for Change in action.

“That’s why I’m so excited about Smart Pension’s investment in the UK’s first commercially funded ground source heat pump network in South Wales, delivering returns, growth and jobs.”

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Andrew Evans, Group CEO and co-founder of Smart, said:

“As a leading workplace pension provider in the UK, we’re always looking for innovative ways to grow our members’ pensions and support the UK economy. That’s why we’re so proud to be investing in Octopus Energy, a fantastic British tech company, who set up next door to us when we set up our first offices a decade ago. By the end of next year, supported by innovative investments like this, we will have scaled and reached £10bn AUM. 

“This collaboration will help deliver strong, long-term returns for UK retirement savers, and also will support efforts to lower household bills and reduce emissions for homeowners. It’s a great example of how UK tech businesses can come together to tackle important challenges, and create a positive impact.” 

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James Lawrence, Director of Investment Proposition at Smart Pension, said: 

"We are dedicated to providing strong, sustainable returns for our members while supporting the country in a sustainable way to reach a low-carbon economy. Partnering with Octopus and Kensa allows us to invest in British infrastructure to deliver measurable environmental and social impact for years to come. From renewable surplus power generation to support local leisure facilities, to cutting-edge clean tech like heat pumps, these are the kinds of investments that not only align with our own ethical standards, but also help members feel a deeper connection to their pension savings.”

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Zoisa North-Bond, CEO at Octopus Energy Generation, said: 

“This partnership shows how pension savings can literally power the future — turning contributions into green electrons that heat homes, replace gas boilers, and drive down energy bills. It brings everything full circle: the very money people are saving for retirement is helping to build the smarter, carbon-free energy system they’ll rely on in years to come. By teaming up with Smart Pension and innovators like Kensa, we’re proving that smart investment doesn’t just deliver long-term returns — it creates real, tangible change for communities and speeds up the UK’s journey to net zero.”

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Tamsin Lishman, CEO at Kensa, said:

“As pioneers in ground source heat pump technology, we are proud of our role in delivering the switch to better, more affordable heating and hot water, powered by ultra-efficient, ground source heat pumps designed and made here in the UK. The Parc Eirin investment demonstrates the transformative role private funding will play in helping both housebuilders and homeowners transition to effective, low-carbon heat – the critical next frontier in the UK for carbon reduction, which currently contributes around 13% of national greenhouse gas emissions.

“The investments made by Smart and Octopus Energy Generation are encouraging for the UK’s ever-growing renewables sector. They will support the UK’s Net Zero goals, generate growth, and provide more well-paid green sector jobs.”

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Smart Pension’s membership is set to rise to over 2 million by the end of 2025 through further growth and consolidations, including up to 300,000 members and assets from the consolidation of Options Master Trust, expected to transfer to Smart Pension in the coming months. 

Smart Pension launched in 2015 in response to the implementation of auto enrolment legislation, rolling out seamlessly to businesses across the UK, and it has become one of the fastest growing master trusts in the UK.

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Media enquiries

Smart Pension: [email protected] 

Octopus Energy Group: [email protected]  

Kensa: [email protected]  and Kensa media images can be downloaded here. 

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Notes to Editors:

• Octopus’s Sky fund is a diversified portfolio with £1.5 billion invested in renewable energy assets like wind, solar, and biomass, purposefully allocating around a third of its capital to accelerate the growth of clean energy infrastructure right here in the UK
• The OETF fund  targets the roll out of proven energy transition technologies into newer sectors — including heat pumps like those developed by Kensa — along with data centres using heat recycling and long-duration energy storage.
• Estimates of a £100 billion asset class and 250,000 geothermal heat network connections/year is based on National Electricity System Operator’s 2025 Future Energy Scenarios, projecting a need for 3.8 million homes with GSHPs by 2050.
• The UK Government is expected to implement the Future Homes Standard this Autumn, banning new housing developments from installing gas boilers. In Scotland, the New Build Heat Standard was implemented in 2024, requiring all new buildings applied for on or after 1 st April 2024 to require climate-friendly heating systems. Wales is currently consulting on its own version of the Future Homes Standard.

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‍About Octopus Energy Generation 

Octopus Energy Generation is driving the renewable energy agenda and building green power for the future. It is reshaping the market by leading the transition to a cleaner, greener future through renewable projects connected more deeply to customers and businesses. As one of Europe’s largest specialist renewables investors, it manages 4.3 GW of green energy projects like wind and solar farms in over 2118 countries, worth £7bn ($9bn/ €8.5bn). These generate enough green power for 2.4 million homes every year - the equivalent of taking over 1 million petrol cars off the road.

Octopus comes up with innovative tech-enabled products to change ingrained thinking about energy, positively influence the net zero economy, deliver cheaper energy for customers and make it easier for everyone to be a part in the energy transition. This includes innovations like ‘The Collective’ – the UK’s first FCA-regulated investment platform launched by an energy supplier. It allows people to invest directly in renewable energy projects', like wind turbines or solar farms, from £25. The first two projects’ available shares sold out within 6 days, showing strong appetite for a new way to take part in the clean energy transition.

For more information, check out our website. 

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About Kensa

• Kensa is a UK manufacturer and installer of heat pumps, founded in 1999.
• Kensa has consistently been the largest supplier of ground source heat pumps in the UK since 2012, pioneering products such as the Shoebox NX, which fits in a kitchen cupboard and achieves over 400% efficiency, five times as efficient at a gas boiler.
• Kensa has pioneered game-changing approaches to heat pump installation, developing expertise in shared ground loops, the essential shared underground infrastructure, which are a time and cost-efficient means of connecting residential dwellings, whether new build homes, high-rise flats or terraced streets
• To-date close to 20,000 Kensa ground source heat pumps have been installed, saving residents up to 67% on their energy bills, and reducing carbon emissions by over 1 million tonnes
• Kensa is delighted to work in partnership with Legal & General and Octopus Energy Generation. Backed by their £70m investment, Kensa is working across new build, social and affordable housing and retrofit projects to deliver heating that’s better for everyone.

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About Smart Pension

Launched in 2015, Smart Pension now exceeds £10bn in Assets Under Management (AUM) and serves over 2 million members and 100,000 employers. It is powered by Keystone, Smart’s global savings and investments technology platform.

Aquiline, Barclays, Chrysalis Investments, DWS Group, Fidelity InternationalStrategic Ventures, J.P. Morgan, Legal & General Investment Management, MUFG and Natixis Investment Managers are all investors in Smart Pension.