Based on our research, the cheapest way to cool your home is to use a single split system air conditioner.
The average hourly and daily running costs in Australia are $0.73 and $3.44, respectively, but there are ways to lower energy bills this summer, as explained further down.
Air conditioner running costs in QLD and the NT are higher because they are categorised as hot climate zones. Our state-by-state breakdown will show the cost difference across states and territories.
Air conditioning running costs during summer 2024
We've crunched the numbers to show how much your air conditioner will cost to run this summer (90 days).
The running costs have also been broken down into daily and hourly figures in case you want to make adjustments accordingly.
You can read our methodology about how we calculated the running costs before diving deeper into the guide.
What is the cheapest type of air conditioner to run?
According to our analysis, a single split system is the cheapest type of air conditioner to use. It dispels the myth that bulky appliances cost more to run.
Cooling-only split systems cost $152 to run over the summer period, while reverse-cycle split systems cost $185.
Reverse-cycle split systems are generally more efficient for both heating and cooling a home during the year. Air conditioners cost far more to run than the other appliances using energy in your house year round.
Finder survey: Do Australians care how much their appliances cost?
Response
Yes
84.78%
No
15.22%
Source: Finder survey by Pure Profile of 1145 Australians, December 2023
Understanding the different types of air conditioning systems
You can get all 3 air conditioners listed in cooling-only or reverse-cycle modes.
Single split systems: These have one indoor and one outdoor unit and are generally unobtrusive. You can choose between cooling-only models or a reverse-cycle AC which will heat and cool your home. If you're looking to buy, costs start at around $800 for a 2.5kW unit and installation can set you back around $600 for a small unit.
Ducted air conditioners: There are different ducts installed inside the ceilings and walls of a home. Air is sent from one central location. You can have one installed with a zone controller which allows you to switch on the AC only in certain parts of your home. Starting costs for purchasing and installing a ducted system are $9,000 to $10,000.
Portable air conditioners: These can be a more practical choice if you don't have any other type of air conditioner installed at your property and you're also renting. They will cool one room at a time. Costs start at $350–$450 for a 2.5kW system.
Single split system air conditioner running costs
The running costs for a single split system (cooling-only and reverse-cycle) have been broken down by state and system size. Hover on each bar to see the actual cost. Not all unit sizes support both reverse-cycle and cooling-only.
Due to different climate zones, you'll notice that running costs in VIC start at $29 for a 2.5kW system but jump to $153 in QLD, which is the highest across all states and territories.
We analysed the running costs for a ducted air conditioner across different states and territories over the summer and found it's cheapest to run a ducted air conditioner in VIC and highest in QLD.
The range for VIC is $44 to $308 compared to $223 to $1,588 in QLD.
You can hover on the bars for actual dollar figures. Not all unit sizes support both reverse-cycle and cooling-only.
Portable air conditioners are generally more expensive to run, with the lowest starting cost in VIC at $137 for a reverse-cycle 2.5kW system. It goes up to $685 in QLD for the same system size and type.
You can hover on the bars to see actual costs. Not all unit sizes support both reverse-cycle and cooling-only.
It should come as no surprise that fans are cheaper to run, costing 2–3 cents per hour as they consume less electricity.
Air conditioners can cost anywhere between $0.33 and $1.70 to run per hour depending on the type.
Investing in one or more fans for your home can be a great idea to keep your cooling costs down this summer. The upfront cost may be a bit higher but it'll pay itself in no time.
How can I reduce the running cost of my air conditioner?
These 5 tips can help you keep your energy bills at bay when running your air conditioner this summer.
Clean the filters regularly. It's recommended that you clean your air conditioner's filters at least once a year. Filters can become clogged with dust, pollen or even mould, lowering their efficiency.
Raise the thermostat. Setting the right target temperature is vital. Each extra degree of cooling can add 10% to your bill.
Use your air conditioner for fewer hours. Running your air conditioner only during the hottest parts of the day – say, cutting down from 4 to 3 hours of use – will knock 25% off your cooling bill.
Use fans to circulate air. If you only need some light or localised cooling, such as a small room or a desk, use a fan. They work nearly as well as an air conditioner for a fraction of the cost.
Close doors, windows and blinds. If you stop heat from getting in, you'll have a much easier time keeping your living spaces cool. If there's a cool breeze, you might want to open your windows instead.
Besides following these tips, you should also make sure you're signed up for an electricity plan with the cheapest usage rates for your area. This can help reduce the cost of your energy bills during summer.
We calculated cooling costs for the summer (90 days) by first noting down the most common types of air conditioners used in Australia:
Single split systems
Ducted air conditioners
Portable air conditioners
We then gathered running cost data for 4,940 appliances across the 3 categories via the Energy Rating Calculator.
Here's what we input:
For each state or territory, we entered the postcode for the capital city
We also entered the average electricity usage rate for each state or territory as per Finder's database of single-rate tariff plans (accurate as of 31 October 2023)
Postcodes and average usage rates
NSW: 2000 (Ausgrid) – usage charge 35.54 cents per kWh
QLD: 4000 – usage charge 31.35 cents per kWh
ACT: 2601 – usage charge 26.93 cents per kWh
SA: 5000 – usage charge 44.4 cents per kWh
TAS: 7000 – usage charge 28.82 cents per kWh
WA: 6000 – usage 30.8 cents per kWh
NT: 0800 – usage 28.1 cents per kWh
VIC: 3000 (Citipower) – usage 25.99 cents per kWh
Australia: 31.49 cents per kWh
The calculator gave us the 1-year running cost for each of the 2,408 air conditioners by using the usage rates we input. Energy Rating also takes into account different climate zones to calculate costs.
While the calculator gave us both the heating and cooling costs for the year, we only considered the cooling cost for the summer period.
On our page, you'll see a few different breakdowns, here are the assumptions we used for them:
Daily cooling cost: The Energy Rating Calculator supplied us with a yearly cooling cost and a yearly heating cost for each air conditioner. We assumed that people only cool their houses over the 3 summer months of the year (roughly 90 days). So according to this we took the yearly cooling cost and divided it by 90 days to get the average daily cost over the summer.
Hourly cooling cost: Finder's Consumer Sentiment Tracker data revealed the average Australian runs their air con for 5 hours per day. We now took the daily cooling cost we calculated above and divided this by 5 hours to calculate the average hourly cost when running the air conditioning units.
Frequently asked questions
This will largely depend on the size of the room that requires cooling. The bigger the room, the larger your unit will need to be to work efficiently.
With that in mind, here's a general guide to help you out.
Room size (m2)
Common room types
Air con size
10–25m2
Bedroom, study, small office
2.6kW
25–35m2
Bedroom and ensuite, office, small lounge room, small kitchen
3.5kW
35–60m2
Master bedroom, medium lounge room, kitchen
5–6kW
60–80m2
Large lounge room, big open plan areas, small shops
7–8kW
The size of your room and the size of the air conditioner will impact running costs. If the air con size is small, but you have a large room, it'll need to work harder to cool the space.
You should also clean the filters at least once a year because dust, pollen and mould can impact how efficiently the air con runs.
Reverse-cycle split systems are usually the cheaper and more energy-efficient option.
Ducted systems are generally preferred if you have zone control. It means you will have control over which room is getting cooled. Without zone control, your entire home will have air conditioning running, which defeats efficiency.
Here's how the 2 types of air conditioners compare if you disregard zone control.
Reverse-cycle split system
Ducted air conditioner
Designed to cool a single room or space
Designed to cool your whole house
Each room can be set to a specific temperature
All rooms are cooled to the same, centrally set temperature
Relatively easy to install
Requires a dedicated duct system to be run throughout your house
Individual units are relatively inexpensive (between $1,000 and $2,000 depending on the air con size)
Expensive to install ($5,000 to $25,000 depending on the size of your home)
Some air conditioners, such as a split system, will have a star rating label. The higher the star rating, the more efficient it is to run. For example, an air conditioner with a 1.5-star rating will be slightly more expensive to run than a system with a 3.5-star rating.
Finder's overall pick for the best air conditioner in 2023 is Fujitsu 7.1kW Reverse Cycle Split System Inverter Air Conditioner DRED Enabled.
We have also rounded up 10 more best picks across different categories depending on the type and size of air conditioner you want.
Mariam Gabaji is an editor and tech and utilities expert at Finder with over 11+ years of experience in print and digital media. Her main goal is to help households cut through the industry jargon and save money on their household bills. Her expertise is often featured in media including the ABC, Yahoo Finance, 9News, 7News, A Current Affair, The Guardian, SBS and Money Magazine.
Most Western Australia residents can't switch electricity providers but have a few options when it comes to gas. Find out if you can switch energy retailers.
Residents of the ACT have several electricity and gas providers to choose from.
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