The deal forms part of a UK government plan to require domestic energy suppliers to provide all of their customers with a smart meter in homes and small businesses across the UK by 2020.
The SMETS 2 meters are the next generation of smart meters and promise to deliver a “wide range of improvements”, SMS said, including high levels of data security and support for microgeneration technology.
Alan Foy, chief executive of SMS, said: “We are delighted to be working with Octopus Energy, a supplier of 100 per cent green electricity. Octopus Energy is backed by the Octopus Group, which is a large investor in renewable generation internationally and the UK’s largest investor in solar power.
“SMS, like Octopus Energy, are committed to leading the smart energy revolution and SMS looks forward to bringing the benefits of smart meters to Octopus Energy’s customers.”
Stuart Jackson, chief financial officer at Octopus Energy, said: “The size of this partnership is a result of Octopus Energy’s tremendous growth and ambition.”
Established in 1995, SMS installs and operates gas and electricity meters on behalf of major energy companies. It has a network of UK offices.