The ruling Liberal Democratic Party is reportedly seeking to halt funding for the lion's share of a ¥70 billion renewable energy program by removing tax breaks for companies that install solar panels to sell power.

Cutting the solar incentive portion of the initiative will shore up funds and help Prime Minister Shinzo Abe, who is seeking to lower the corporate tax rate to under 30 percent next year.

An LDP tax panel is considering a plan to end the solar tax benefit by March 31, the Nikkei business daily said, without attributing the information.

Japan has encouraged the use of clean energy via so-called feed-in tariffs, which guarantee producers receive a set price for power. As of the end of July, the government had approved solar projects to the tune of 82 gigawatts, about a quarter of which have gone online.

The Ministry of Economy, Trade and Industry said in June that it will review the incentive program for promoting use of renewable energy to tackle issues such as project delays and the dominance of solar power over other energy sources.