After NSW leaders sat on the fence over the weekend, Premier Chris Minns on Monday categorically ruled out intervention to stop gas connections in new builds.
The state could not be diverted from major challenges including the closure of two coal-fired power stations in 2025 and 2029, he said.
"I'm not going to add more and more bits and pieces to our energy policy when we've got enough on our plate at the moment," Mr Minns told reporters.
Victoria last week revealed it would ban gas for all new homes and subdivisions from January in a move lauded by environmental and health groups.
But the decision was as much motivated by a scarcity of gas in the southern state as environmental reasons, Mr Minns said.
Meanwhile, NSW had enough capital and private sector investment in renewable energy, including in regional areas, but faced difficulty connecting that to the national energy market.
"It's proving to be extremely challenging," Mr Minns said.
"(It's) not just in terms of land use management, planning and farmers in the agricultural sector who are upset about lines going through their communities .... but the cost escalation is massive as well."
Sydney-based federal crossbench MPs were scathing of the premier's decision to lock new homeowners and renters into paying two energy bills long into the future.
"Chris Minns has shown a huge lack of leadership on climate, not just by not banning new gas, but actually in terms of not even committing to the previous coalition government's commitment on climate," Wentworth independent Allegra Spender said on Monday.
Kylea Tink wanted the federal government to end the states' gas "addiction" while fellow northern beaches independent Zali Steggall urged more support to help households switch to all-electric stoves.
"Gas in the household accelerates and increases the risk of asthma and respiratory diseases and it is not the healthiest form," Ms Steggal said.
The premier's call comes a day after NSW Energy Minister Penny Sharpe said her office was still contemplating a gas ban.
"We're not ruling it out all together but I've got to say it's not a priority," she told reporters on Sunday.
Victoria's decision mandates electric power only for all new residential properties and subdivisions that require a planning permit from New Year's Day.
Residents of the all-electric homes are expected to save $1000 per year on their energy bills.
