IN a spectacular backflip, Premier Colin Barnett has reversed the decision to slash the residential net Feed in Tariff for rooftop solar panels.

The decision was made in a State Cabinet meeting and comes on the back of widespread anger over the original announcement made in the Budget last week.

The solar panel tariff cuts was a hugely unpopular decision in last Thursday's Budget.

“Quite simply, we got this decision wrong and we have to fix it,” Mr Barnett said in a statement.

“We have listened, and we appreciate the commitment that many people have made to take up renewable energy, like solar power.”

WA politicians immediately took to Twitter to applaud the backflip

Opinion: Barnett's reputation damaged by feed in tariff debacle

Treasurer Troy Buswell had only moments earlier told journalists there was no chance the decision would be reversed.

The program, introduced in 2009, was such a success the Liberal government admitted in 2011 the take-up cap had been breached, costing it some $46 million more than planned.

Mr Buswell denied the reversal was embrassing or that he'd been hung out to dry.

``I have a job to do in government ... protecting the finances of the state,'' he told reporters.

``It's not always going to mean that you're the most popular person in town.''

Mr Barnett said the budget attempted to “achieve a balance” for residents.

“We understand that this measure would have had an unfair impact on one section of the community and it has to be reversed,” he said.

Greens MLC Lynn MacLaren said outrage from the community forced Mr Barnett to quickly re-evaluate.

"This is the clearest indication yet that the Premier was out of touch when he set his goals for this budget. He should also urgently make a genuine commitment to transition to renewable energy,” she said.

"Well done to Western Australians who stood up and rejected this unfair decision.

“Broken promises to 75,000 WA homeowners would have meant that their solar panel investment will fail to recoup money outlaid in the predicted ten year time frame.”

The opposition was to hold a rally outside parliament today, protesting against the move to halve the tariff.

Government in turmoil - McGowan

``Honestly, how bad is the Barnett government - complete, utter turmoil,'' WA Labor leader Mark McGowan tweeted.

The decision also brought on an internal backlash, with Southern River MLA Peter Abetz labelling the move unethical while maverick Hillarys MLA Rob Johnson threatened to cross the floor for the first time in his 20 year political career.

Mr Johnson said his constituents were irate after the government's annoucement last Thursday to ditch its original 40c deal.

``People feel they have been absolutely dudded by the government,'' he told ABC radio on Monday.

``And I can't help but agree with them.''

Some 18 Liberal MPs had met over the weekend to discuss the matter and all had made comments of disgust, he said.

``We should never renege on a contract with the people. It is disgraceful that we should even contemplate that.

``People have been misled in general terms on many areas, but this one is a very serious one because it affects people and their ability to spend their money.

``I won't have a bar of it.''

Political analyst Peter Kennedy said the decade-long tariff promise to 75,000 WA households that feed excess power into the grid could have sparked a voter backlash against the Liberal party at the September 7 federal election, potentially representing 150,000 voters.

Budget backlash: Win for people-power

Anger over the change in rebate had spread even within the Liberal Party’s own ranks.

Rob Johnson slammed Government

Earlier today angry Liberal backbencher Rob Johnson slammed his party for spending “like a Labor government” and turning paid members off the party.

Speaking to PerthNow before the Government backflip, Mr Johnson said since the State Government announced last week that it would slash the rooftop solar panel rebate by half, his office had been inundated with phone calls and emails by angry electors.

Residents with solar panels have been left fuming over last week’s Budget announcement that the rooftop solar panel subsidy would be halved in an effort to save about $51 million in the next four years, going back on its 10-year contract.

Mr Johnson said the government should not have gone back on its deal with the 75,000 solar panel owners.

“I have been inundated on this issue, on Friday my two office staff all day long were fielding phone calls and emails,” Mr Johnson said.

“I have had more emails on this than anything else, genuine emails.”

Mr Johnson said he had become concerned about the amount of debt the Liberal government had been creating.

He said the current State Budget was like “shuffling deckchairs on the Titanic.”

“They’re getting us into a situation that normally a Labor government would,” he said.

According to Mr Johnson, the Liberal Party was losing votes from financial members because of the moves.

“These are ordinary members of the public who are members of the Liberal Party, ordinary mums and dads, and they’re saying they’re not going to even vote Liberal in the Federal election,” Mr Johnson said.

“And that concerns me because we have got some good candidates.”

This morning on ABC radio, Mr Johnson said Premier Colin Barnett and Treasurer Troy Buswell should have looked at cutting other projects before ripping up the solar contracts.

“There’s been so much money wasted, quite frankly,” Mr Johnson told ABC.

“It’s a question of what is it that we need and what is it that we simply want. Do we need Elizabeth Quay? No we don’t somebody simply wants it.

“Do we need a new footy stadium at the cost of billions of dollars, for twenty thousand people, no I don’t believe we do it’s something that’s simply wanted not needed.”

Yesterday Opposition Leader Mark McGowan said he would ``take on'' Mr Barnett after the state government reneged on a 10-year undertaking for households that feed in solar power to the grid.

Mr McGowan tweeted on Sunday: ``Anyone unhappy with Mr Barnett ripping up their family's solar contract should come to parliament at 2.45pm Tuesday where we will take him on.''

The state government believes it is safe from legal action over the decision, despite many householders expressing their outrage on talkback radio.

The program, introduced in 2009, was such a success that the Liberal government had to admit in 2011 the take-up cap had been breached, costing about $46 million more than planned.

The Premier’s office has been contacted for comment.