Up to 60,000 households will get interest-free loans or discounts on new washing machines, fridges and water heaters under an ambitious $61.5-million election pledge by the Baird government to boost energy efficiency.
Under the policy, tradespeople will also be able to offer upfront discounts on the purchase and installation of energy-efficient air conditioners and heaters.
Environment Minister Rob Stokes said that, for the first time, gas appliances would be included in the energy savings scheme, recognising rising gas prices in NSW.
Almost half of the funds - $26.8 million - will go to help low-income households cut their power bills by purchasing expensive but very efficient whitegoods and major appliances.
Mr Baird said the plan would ensure these appliances were accessible to vulnerable households across NSW.
Previously, the NSW government had funded energy experts to go into homes and advise on how to cut power bills, for example with water-saving shower heads or by running their dishwashers outside the electricity peak.
But research showed the upfront cost of energy efficient appliances was a major barrier to households cutting their power bills.
"This is a big thing to do, but its very clear if we want to sell the benefits of energy efficiency we have to partner with people," said Mr Stokes.
The 60,000 households are projected to save $95 million in power costs over the lifetime of the appliances, which can range from 10 years for a washing machine to 20 years for a water heater.
Mr Stokes said the government recognised the energy sector was undergoing rapid transformation and it needed to respond.
"We can't move to more renewable sources of energy generation without addressing energy efficiency as the same time. We need to use energy more thriftily," he said.
People likely to be eligible for interest-free loans or discounts include pension concession card holders, health concession card holders, veterans and social housing tenants.
Combined Pensioners and Superannuants Association research manager Amelia Christie said pensioners were often given second-hand washing machines or fridges, but they were the most expensive to run.
"They know if they upgrade the appliance they would be better off, but they don't have the money to buy a new appliance," she said.
Ms Christie said a scheme based on low or no-interest loans would be "fantastic" if it stopped people having to rent appliances. "Rental appliances are the worst deal. You are paying in excess of what the machine costs, and you never end up owning it," she said.
Ms Christie said the energy efficiency advice program had been helpful, but didn't help renters because landlords would often refuse to make the recommended changes. Even tenants in social housing had been excluded, she said.
The Baird Government will work with social housing providers on the new scheme, and is investigating incentives to get private landlords to make energy efficiency changes to their properties that reduce energy bills for tenants.
Pensioner Herbert Eder, 69, of Abbotsford, said it was difficult for pensioners to get loans to pay for replacement whitegoods when they break, let alone to upgrade them. "When you are on a pension, there's no way you can afford to buy a new fridge," he said.
Mr Eder turns his water heater off at the weekend to save money, instead relying on a small urn. His freezer is also switched off because it is too expensive to run.
$16 million will be spent to encourage businesses to become energy efficient.
