Third of UK workforce invest in British solar farm through Nest pension savings

Nest, one of the UK’s largest pension schemes by membership, has today confirmed the purchase of a multi-million-pound solar farm through its partnership with Octopus Renewables. 

Octopus Renewables, as its lead fund manager for renewable investments, is helping the pension scheme invest billions of pounds into green infrastructure over the coming decades.

The first people to formally tour the 60,000-panel solar farm, following its addition to Nest’s £20bn investment portfolio, were Nest savers. In total nearly 10 million Nest members, a third of the UK workforce, are now investors in the solar farm.

The investment into the Reading solar farm represents one of the largest deals by Nest into green UK renewable energy. Nest’s membership should benefit from the strong investment returns the solar farm is expected to produce for decades to come, under the management of Octopus Renewables.

Nest savers were invited to visit the site on Monday, 18 October to show how their pension was being invested in the real world, connecting people to their pension through something they can see.

Research shows people care how their pension is invested, particularly in relation to climate change. 65% of pension savers believe their pension should be invested in a way that reduces the impact of climate change. Just 4% strongly disagreed.

Speaking ahead of the visit Mark Gamble, a Nest member, welcomed the commitment from Nest to green infrastructure:

“I like the idea of investing in sustainable environmentally friendly projects, like this massive solar farm. I find the idea of investing in sustainable energy and similar projects very exciting.

“This partnership with Octopus is exactly the type of thing Nest should be nurturing. It helps to protect our world and at the same time earns good returns for its members.”

Ahead of the visit Paul Todd, Nest’s Director of Investment Development, was keen to explain what fantastic investment opportunities green infrastructure sites are:

“Rising gas and energy prices are giving us a taste of a world with greater energy insecurity.

“Solar and wind farms are the energy of the future and present very attractive investment opportunities. We’re aiming to invest billions of pounds into green energy over the coming decade. 

“We believe it’s important that we tell people what we’re doing with their money. Afterall our 10 million savers are now the proud investors in this solar farm. 

“Any Nest member travelling on the M4, near junction 11, can look across and see their pension in action. 

“Our savers want a bigger pension in a better world. Even if the sun doesn’t shine for their visit, hopefully Nest members will feel like they have a brighter future.”

Commenting on the purchase, Alex Brierley, Co-Head of Octopus Renewables, said:

“Institutions, including pension funds, will play a vital role in helping to unleash the pent-up capital to fight climate change, and so we’re delighted to get this latest deal over the line. 

“The fund in which Nest is the cornerstone investor benefits from a healthy pipeline of assets across a range of technologies, geographies and assets across their lifecycle – all of which will create a meaningful impact that Nest’s members can be proud of.”

Ensuring the solar farm continuously operates at peak efficiency is achieved through the operations management and maintenance provided by BayWa r.e. During the visit, representatives from BayWa helped explain how the solar farm operates and provides a sustainable and reliable return on investment.

Survey data featured within the press notice was conducted by YouGov (July 2020) among 2,010 UK adults, of which 1,183 were saving into at least one pension.

About Nest:

Nest was set up by the government to ensure every UK employer had access to a guaranteed, easy-to-manage pension scheme after the introduction of auto enrolment. It’s since grown to become the UK’s largest pension scheme by members, with more than 10 million members. 

Nest’s members benefit from an award-winning investment strategy and a diversified portfolio. It invests responsibly to achieve stronger long-term, risk-adjusted returns and help millions of people enjoy a better retirement.

Currently Nest holds more than £20 billion assets under management (AUM), receiving around £400 million each month from its members. By the end of the next decade Nest is projected to be managing close to £100 billion on behalf of its members.

About Octopus Renewables:

Octopus Renewables, part of Octopus Energy Group’s generation arm, is a specialist clean energy investor. Launched in 2010 its mission is to accelerate the transition to a future powered by renewable energy. It has a diverse portfolio of assets with a capacity of over 3GW across seven countries, making it one of the largest commercial solar investors in Europe and a leading investor in onshore wind. 

Octopus is also leading the next wave of renewables being built across Europe and other carefully selected global markets. There is a significant opportunity to unblock much needed investment by building bespoke portfolios of renewable assets at scale, across technologies and countries, to create better outcomes for our investors.