NSW households with rooftop solar will get access to subsidised batteries under a state government plan it says will save as much as $2400 on up-front costs.
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The incentives could also help cut energy bills for more than one million households with solar panels and would bolster the reliability of the state grid, the government said in announcing the scheme on Friday.
The measure comes a day after a controversial two-year lifeline was thrown to Australia's largest coal-fired generator, in a bid to shore up at-risk energy supplies amid a slower-than-expected transition to renewables.
The deal struck with Origin Energy will keep the Hunter region's Eraring plant running past its previously scheduled retirement in August 2025 to avoid potential power shortages and price spikes.
Energy Minister Penny Sharpe said the incentives for household batteries were part of efforts to boost state power-grid reliability.
"This is a targeted action to support those with solar to take the next step to lowering their bills by using renewable energy," she said.
"It also supports the state's transition to renewable energy.
"More than one million NSW households have solar panels on their roofs and adding a battery will see them benefit around the clock, not just when the sun is shining."
Official projections show NSW is likely to fall short of its legislated greenhouse gas emission-reduction goals of a 50 per cent cut to 2005 emissions levels by 2030, and a 70 per cent cut by 2035.
Emissions from power generation are forecast to remain a significant contributor in 2030 before dropping off in the following decade.
For homes and businesses wanting to install solar, the incentive would be factored into quotes for a new solar and battery system installation, the government said.
There would also be a $250 to $400 incentive for connecting a battery to a virtual power plant - technology that aggregates thousands of home batteries to help stabilise power supply.
The incentives will be available from November and the rollout will take place via approved suppliers once they are accredited.
Australian Associated Press
