A new energy bill relief package has been announced for NSW’s most vulnerable households.

The federal and NSW governments have unveiled a $206 million energy funding initiative, designed to benefit over 30,000 low-income and social housing households across NSW.

The funding offers much-needed relief from rising energy costs ahead of the May federal budget.

Under the initiative, social housing providers, responsible for some of the nation's least energy-efficient dwellings, are set to receive $175 million. 

This funding will be directed towards enhancing the energy efficiency of their properties through the upgrade of appliances and insulation, as announced by the Albanese and Minns governments. 

Such upgrades are aimed at reducing energy consumption, thereby lowering the power bills for tenants.

The funding, to be shared equally between the federal and state governments over four years, will target approximately 24,000 social housing households. 

Eligible upgrades include improvements to water systems, ceiling fans, air conditioning units, solar systems, insulation, and draught proofing, with NSW authorities overseeing the allocation of the $175 million between state-run and community housing providers.

Additionally, a separate $30 million has been earmarked for low-income households and apartment residents. 

This fund aims to facilitate rooftop solar installations or grant access to community energy schemes like solar gardens.

About 10,000 NSW residents stand to benefit, with rebates covering up to 50 per cent of the cost for rooftop solar installations, potentially saving households up to $600 annually on power bills.

A further $1 million will be invested in community renewable energy projects along NSW's far south coast, showcasing the government's commitment to sustainable energy solutions.

This announcement follows a similar energy relief scheme launched in Victoria.

The Albanese government's proactive approach comes in response to heightened concerns over inflation and the cost of living, with recent polls indicating a shift in public confidence regarding the government's handling of these issues.

The NSW energy cost-of-living package is poised for rollout by the end of March.