HIGHER subsidies for Victorians installing solar panels on their homes would put a significant burden on low-income families, Premier John Brumby has warned. Backing a cabinet decision to pay households for feeding solar power into the electricity grid, announced in this week's budget, Mr Brumby said the new solar "tariff" was the highest in Australia. Yesterday, The Age revealed that debate over the solar payment had sparked heated clashes between senior cabinet members Energy Minister Peter Batchelor and Environment Minister Gavin Jennings. Mr Batchelor won cabinet backing for a plan that will pay households a premium rate for energy fed into the grid only, rather than for both energy used at home and that fed into the grid. Mr Brumby said there was always debate over climate change issues but a larger tariff would increase power bills by up to 10%. "In my conscience I couldn't have supported something that was going to put power bills up by such a huge amount for low-income families," he said. From next year, households will be paid 60 cents a kilowatt-hour fed into the power grid. The standard retail rate is 17 cents. Government calculations predict the solar scheme will add an extra $10 a year to the power bills of non-solar households. The Premier acknowledged some in the environment movement wanted higher subsidies and yesterday morning more than 200 protesters greeted parliamentarians as they arrived at work. They accused the Government of offering a "fake" subsidy that offered little incentive for people to install solar panels. Environment Victoria campaigns manager Mark Wakeham told the crowd the solar policy had undermined hopes that the Government would cut greenhouse pollution. Opposition environment spokesman David Davis said Labor had dropped the ball on solar and failed to develop a formula to help the industry.