How Much Does It Really Cost to Run an Air Conditioner in Australia?

Ever looked at your summer electricity bill and wondered, “Why is this so high?” You’re definitely not the only one. Staying cool during those blazing Aussie summers is essential, but the cost can creep up on you quickly — almost faster than a midday heatwave.

The bright side? Working out how much your air conditioner costs to run is much easier than most people think. With a few basics under your belt, you can keep your home comfortable without stressing every time you hit the power button.

What You’ll Learn

The simple formula behind air conditioner running costs

What affects how much your aircon uses

Which type of air conditioner is the most energy-efficient

Practical ways to lower your cooling costs

The Simple Formula Behind Aircon Running Costs

Yep — there’s a straightforward way to estimate your air conditioner’s cost:

Running Cost = Input Power (kW) × Electricity Rate ($/kWh) × Hours Used

1. Input Power (kW)

This number tells you how much electricity your unit actually uses — not how powerful it is in cooling capacity. You’ll find it on the Energy Rating label or in the product specs.

If you’re comparing models, the government’s Energy Rating Air Conditioner Tool is a reliable way to check the efficiency of most units.

2. Electricity Rate

Your electricity rate depends on:

Your suburb

Your retailer

Your energy plan

Even a tiny difference in price per kWh can make a noticeable difference to your annual bill. To check your exact rate, look at your Price Fact Sheet or visit your retailer’s website — including Sumo if you’re comparing options.

3. Hours Used

This one’s straightforward: the number of hours per day you actually run the aircon.

Once you have those three details, you can estimate both your hourly and seasonal costs.

So… How Much Does It Cost to Run Air Conditioner in Australia?

Seasonal costs vary depending on things like:

Unit size

Weather in your area

Your temperature settings

How well your home is insulated

The electricity rate in your suburb

Many people also like to know the hourly cost. Using sample numbers:

Input Power: 1.3 kW

Electricity Rate: $0.32/kWh

Hours Used: 1

Cost = 1.3 × 0.32 = $0.41 per hour

If you run your aircon for 8 hours a night, that’s roughly $3.28 per day, or about $98 per month.

(These are illustrative figures only and will vary depending on your actual setup.)

Which Type of Air Conditioner Is the Most Efficient?

Not all air conditioners run the same way. Choosing the right type can make a noticeable difference to your power bill.

Split System

Pros:

Excellent energy efficiency

Ideal for bedrooms and living rooms

Flexible — add units room by room

Cheaper to install than ducted

Cons:

Outdoor condenser isn’t always aesthetically pleasing

Less suitable for very large spaces

Best For: Most households, single rooms, small to medium homes.

Ducted System

Pros:

Cools or heats the entire home

Hidden vents for a clean look

Zoning allows different rooms to be controlled separately

Quiet operation

Cons:

Higher installation cost

Not practical for homes without sufficient ceiling space

Best For: Large homes or those wanting whole-house climate control.

Portable Air Conditioner

Pros:

Easy to move

Great for renters or temporary setups

Cons:

Least energy-efficient

Usually cools only a small area

Best For: Short-term use or situations where permanent installation isn’t possible.

Window Air Conditioner

Pros:

Simple installation

Moderate upfront cost

Cons:

Not as efficient as a split system

Cools only one room

Best For: Homes without space for split or ducted systems.

For most Aussie households, a reverse-cycle split system usually offers the best balance of efficiency, comfort, and long-term cost. Ducted systems suit larger homes with higher cooling needs, while portable and window units work best for short-term or single-room use.

Always check the Energy Rating label before buying — even within the same brand, efficiency can vary widely.

Simple Ways to Reduce Air Conditioner Power Consumption

• Set your temperature between 25–27°C: Each degree lower can noticeably increase energy use.
• Clean your air filters regularly: Dusty filters force the unit to work harder.
• Use ECO or AUTO mode: These modes optimise power use automatically.
• Close doors and seal gaps: Stop cool air escaping (or warm air entering).
• Make sure the outdoor unit is installed correctly: Keep it out of direct sunlight and Ensure there’s good airflow around it
• Choose a model with a high Energy Rating
• A high-rated system can save significant energy compared to a low-rated one.

Staying comfortable in an Aussie summer doesn’t have to mean overpaying on your electricity bill. Once you understand how running costs of air conditioners are calculated — and what affects them — you can make smarter choices about how and when you use your air conditioner.

With the right unit, smart temperature settings, and a little maintenance, you can enjoy a cool home and keep your budget in check.

Read more here? How Much Does It Cost to Run Air Conditioner in Australia?