A skills shortage in the renewable energy sector is inflating salaries as companies strive for a competitive edge.

A skills shortage in the renewable energy sector is inflating salaries as companies strive to retain staff with required qualifications, according to management consultancy Hay Group.

The company said that in contrast to the rest of UK market in general, organisations are increasing pay to compete with competitors.

These findings come from a survey of 25 human resources professionals at "20 major businesses" operating in the renewables sector, including utilities companies, manufacturers, developers and consultancies.

A skills shortage was felt by the majority of those surveyed, 64%, who reported concerns about growing the business in the future.

To overcome the problem, 75% of companies said they were looking to train existing staff to a higher level. But 67% are advertising positions with higher salaries in an attempt to attract the most talented individuals to their organisation.

Gavin Brown, reward information consultant at Hay Group. said: "Even during a very difficult economic period, growing sectors like renewables are defying the rest of the employment market by increasing pay as companies try to establish themselves as market leaders."