Daniel Mookhey budget estimates: NSW Treasurer ‘considering’ subsidies for electric appliances

The NSW Treasurer has said the state is considering subsidies that could make it cheaper for households to transition to electric appliances.

The NSW Treasurer has said the government is considering potential sweeteners for households looking to electrify their homes, conceding that it could bring down skyrocketing energy bills.

During budget estimates on Tuesday, upper house MP Jeremy Buckingham flagged figures from the Victorian government which said homes that use electric appliances, like electric stovetops or electric hot water systems, can save households between $1000 to $1250 a year.

Mr Buckingham asked NSW Treasurer Daniel Mookhey “how significant” he considered these savings to be.

While Mr Mookhey said the modelling wasn’t “advanced” at this point, he said transitioning to electric appliances could allow families to save money in the long run.

“Electrification does present the opportunity for there to be cost savings for households,” Mr Mookhey said.

“We are looking at some of the incentive schemes that other states have provided to allow fundamentally working class and middle income households to get access to these technologies faster than (they would) otherwise.”

NSW Treasurer Daniel Mookhey acknowledged transitioning to electric appliances could bring down energy costs. Picture: iStock

He said the schemes he was analysing were more similar to those put forward by the ACT government, where new gas connections have been banned since 2023 as it pursues a total transition to renewables by 2045.

“We are certainly looking at whether or not any of these schemes can be adapted to NSW’s context,” he said.

Under the territory’s Sustainable Household Scheme, eligible households can get a 10-year interest-free loan between $200 to $15,000 to spend on energy-efficient products like electric stove tops, ceiling insulation, rooftop solar panels and electric vehicles.

NSW Treasurer Daniel Mookhey said the government was considering if the state could implement subsidies to help households transition to electric appliances. Picture: NCA NewsWire/ Gaye Gerard

Earlier this year, the City of Sydney council voted to consider a ban on new gas connections for homes and businesses, following similar actions taken by the Parramatta Council, the Canterbury and Bankstown Council and the Waverley Council.

Premier Chris Minns has previously ruled out a blanket ban on gas in lieu of electricity, stating premature electrification could further exacerbate the state’s supply issues.

“We’re not pursuing that … the challenges in energy are serious in NSW. I don’t want to lead anyone up the garden path when it comes to that,” he told 2GB in July.

“We’re facing a situation where we need gas for industry. We’ve also got baseload power that’s coming off in the next few years and not enough renewables coming into the system.

“I don’t need another complication or another policy change when the challenges ahead of us are so serious.”