Thirty thousand 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 the scheme that provides $285 rebates on their annual power bills.
Under the state government's new $128 million Energy Bill Buster scheme, those eligible will 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 their rebates for up to $4000 to upgrade their appliances.
"This Energy Bill Buster package is all about sending (Russian president Vladimir) Putin's power prices packing," Treasurer Matt Kean told reporters on Wednesday.
There were a number of factors driving up the cost of power in the state, and the war in Ukraine was significant.
"The price of gas is enormously high because of the war in Europe at the moment," Mr Kean said.
Unscheduled outages at coal-fired power plants, along with a 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.
Premier Dominic Perrottet said households given the opportunity to invest in green technology would ease the pressure on power bills and was also good for the environment.
"This is important, and we know that many families right across the state this time are going through a difficult time," he said.
"We want to use the NSW budget to help families budgets and set up a brighter future for the people of our state."
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.
