The renewed solar power efforts come from the world's second-largest economy and fifth-largest emitter of greenhouse gases as it rushes to meet its Kyoto obligations, Australia's Energy Matters reported.
Japan was once a world leader in solar production, but in 2006 the government ended solar subsidies, leading to many companies being taken over.
Japan's Ministry of Economy, Trade and Industry announced $145 million in the first quarter of next year will go toward encouraging home solar power.
The ministry said Japan aims to have solar power systems installed on more than 70 percent of new homes.
The new efforts will also include solar power education in schools, the development of refined deep cycle battery technologies and the installation of grid connections.