He also said he would review the country's energy policy and consider other energy sources like wind and solar power.
Kan said he would give up his prime minister salary which is 1,636,000 yen a month ($20,200 a month), but he would still receive his lawmaker's salary.
The prime minister's announcement comes the same day that about 100 residents, who had been evacuated from an area close to Japan's Fukushima Daiichi nuclear plant, were allowed to returned home Tuesday for a short visit to gather belongings. After donning protective suits to guard against radiation,the residents where allowed to go to their homes in the village of Kawauchi, officials said. (read more)