The opposition leader has played down the prospect of underwriting new and existing coal generation despite the coalition's policy supporting it.
Her comments sparked an excoriating spray from Prime Minister Anthony Albanese, who dismissed the policy as incoherent.
"The Australian people deserve better than this mess," he told reporters on Tuesday.
Opposition energy and climate spokesman Dan Tehan said the coalition had not changed its position on coal.
"Our plan has been very, very clear and that is we want to have a technology-neutral approach," he said.
"In the short term, we are prepared to have modest targeted underwriting of all forms of energy.
"And then over the longer term, we want to make sure that we have an energy-neutral approach and that's exactly what Sussan has been saying."
In a television interview, Ms Ley all but ruled out building new coal-fired power stations.
While the plan could support new coal power stations "in theory", it would be highly unlikely in practice unless they stacked up financially, Ms Ley said.
Mr Albanese said these remarks contradicted the coalition's policy.Â
"The whole basis of what they are saying is that they will subsidise coal which doesn't stack up, according to the person who launched the policy," he said.
"You couldn't make this up."
Griffith University energy systems expert and member of the pro-renewables Climate Council Joel Gilmore said the plan was fundamentally flawed.
"There's great wishful thinking that we could go back to the good old days, but just like you can't buy lollies for one cent at the corner store, you can't buy coal for rock-bottom prices," he told AAP.
"It just doesn't exist any more."
The cheapest form of energy was wind and solar backed by storage, Dr Gilmore said.
Nuclear power was only an important technology for nations with no space or renewable resources.
"Australia has the best wind and solar resources. We have to lean into our competitive advantage," he said.
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