Key crossbench senator David Leyonhjelm is determined to scrap the renewable energy target.
The federal government is considering its response to a report by business leader Dick Warburton into the cost and benefits of the scheme, which mandates that 20 per cent of all electricity comes from renewables by 2020.
The Warburton review recommended either closing the RET to new investment in wind or solar farms or increasing targets in line with electricity demand.
Prime Minister Tony Abbott said last week he supported renewable energy but did not want it to lift the price of power for business and families.
Labor has warned the small-scale renewables sector – particularly solar rooftop companies – would be decimated along with the bigger projects in wind and hydroelectricity if the changes went ahead.
Any changes by the government would need the support of six crossbench senators.
Liberal Democrats senator David Leyonhjelm said he was actively lobbying both the government and the three Palmer United Party senators to scrap the RET to try to ease power prices.
“PUP says they support it, but we think it is bad for the battlers,” Senator Leyonhjelm told Sky News on Wednesday.
“I’m trying to put some pressure on the government to do something about the RET and the Palmer people to see some sense on it.”