Retailers will welcome the Government’s decision yesterday to make the production of renewable energy more affordable for businesses.

Secretary for energy and climate change Ed Miliband told MPs the Energy Bill would be amended to introduce “feed-in-tariffs”. The system enables micro-generation projects to sell any excess energy back to the grid at a competitive rate, therefore speeding up return on investment.

He said changes to the climate were “happening much quicker than we anticipated or even feared a few years ago” and that it was “right to step up the pace”.

The decision is a u-turn for the Government, which in April voted against Labour rebels who campaigned to introduce the scheme. It forms part of a drive to cut greenhouse gas emissions by 80 per cent by 2050.

Those retailers that are already generating their own renewable fuel include Tesco, Sainsbury’s, Marks & Spencer and the John Lewis Partnership.

See today’s Retail Week for analysis of renewable energy opportunities for retailers.