Free solar panels for 30,000 NSW homes

30,000 NSW homes will receive free solar panel systems or be able to upgrade their appliances to energy-saving models in a bid to tackle rising energy prices.

About one million low income earners in NSW, including concession, health care and DVA Gold Card holders, are already eligible for a scheme that provides $285 rebates on their annual power bills. 

Under the state government's new $128 million Energy Bill Buster scheme, they will now be able to apply to trade in their rebates for a solar system to be installed at their homes.

The government says solar power will save consumers $600 on power bills annually. 

People who can't have solar panels installed, such as those living in apartments, can instead swap the rebates for up to $4000 to upgrade their appliances.

There were a number of factors driving up the cost of power in the state, and the war in Ukraine was a significant factor in driving up gas prices, he said.

Unscheduled outages at coal-fired power plants, along with the rise in gas prices, meant there was no cheaper alternative fuel source to fill the gap.

"Because gas is so expensive, that's massively putting upward pressure on power prices," he said.

The scheme will initially be rolled out to 30,000 households, and further funding of the scheme will be considered depending on the uptake.

The announcement is part of the 2022-23 budget to be delivered on June 21.

The Labor party said the government had failed to meet its promises on solar batteries made in the lead up to the last state election, creating a shortfall of more than 19,600 batteries.

"In the 2019 election you promised to roll out 300,000 solar battery systems over 10 years, including 20,000 this year," NSW Labor Leader Chris Minns said during question time.