The Carbon Trust's director of innovations, Dr Mark Williamson, has welcomed the decision, saying that its own studies have shown the viability of smart metering for businesses.
Previous work by the body claimed that the use of meters by small businesses could save 2.5 million tonnes of carbon emissions each year.
Dr Williamson said: "We are therefore delighted that the government has acted on our research and findings and recognised the role that smart metering can play."
Earlier this year, the Carbon Trust claimed that businesses can save around £1.4 billion a year on energy bills by switching off non-essential electronics and installing efficient lighting in offices.
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