A government amendment to a bill establishing publicly owned company GB Energy calls for measures to make sure "slavery and human trafficking" do not take place in its business or supply chains.
Earlier, The Times newspaper reported that the move would prevent GB Energy from using "solar panels linked to Chinese slave labour," saying the plans would also affect wind turbines and batteries.
China has been accused of torture, forced labour and large-scale arbitrary detention of Uyghur minorities in the western Xinjiang region.
Beijing denies allegations of abuse in the region, which produces large quantities of polysilicon, a key material in the solar power industry.
UK Energy Minister Michael Shanks said GB Energy would "be an industry-leader in developing supply chains free of forced labour".
Luke de Pulford, executive director of the Inter-Parliamentary Alliance on China, a UK group representing an international network of politicians critical of Beijing, said: "This has been a long, hard campaign, but the government has given the Uyghur community some hope today."
"State imposed forced labour is sadly widespread throughout the Uyghur region of China and beyond, and many of those made to work against their will are placed in facilities processing materials essential to the renewable supply chain," he said.
"We cannot ignore this fact, and must not allow a green transition built on Uyghur slavery."
Earlier on Wednesday, Prime Minister Keir Starmer's spokesman said the government was not concerned the amendment could hamper its plan to provide most of Britain's energy through green sources by 2030.
The UK government's proposal still needs to be approved by parliament.
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