The Tory MP for South Suffolk in the East of England was involved in an undercover operation by the Sunday Times.
Journalists posed as solar company representatives who wanted to hire his services.
In the secretly filmed footage he appeared to suggest he could use his position to help business clients.
However, Mr Yeo has strongly denied the claims made by the newspaper, but will step aside while they are being investigated.
Labour issued a statement saying they did not see how he could continue working while the investigation occurred.
Just days before he had expressed disappointment that amendments for a clear carbon reduction target had not been passed in the Energy Bill vote in parliament.
He had urged MPs to back a decarbonisation target suggesting by making the UK’s power sector virtually fossil fuel-free by 2030 would benefit the economy, climate, consumers and business.