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

Last updated on March 19, 2025

Did you know that over 4.6 million Australian households rely on air conditioning to survive the blistering summer heat?

With temperatures soaring above 40°C in cities like Sydney, Melbourne, and Perth, staying cool isn’t just a luxury—it’s a necessity.

But keeping your home or office comfortable comes at a cost. From upfront installation fees to ongoing energy bills, your choice of air conditioner can make a big difference in comfort and savings.

So, how much does it cost to run an air conditioner while being in Australia?

The answer depends on various factors, including the type of air conditioner, energy efficiency, usage patterns, electricity costs, and climatic conditions.

Here, we break down the general costs of running an air conditioner in Australia. This will help you make informed decisions to keep your home cool within your budget.

Factors Affecting the Cost of Running an Air Conditioner

The cost of running an air conditioner in Australia depends on several factors. Here are a few factors that can determine the eventual cost.

1. Type of Air Conditioner

Different air conditioners utilize varying amounts of energy depending on their type. Here’s how they compare:

Split System Air Conditioners: These are the most commonly used and highly energy-efficient options for homes. They usually consume around 500 W to 700 W per hour, depending on their size and power.
Ducted Air Conditioners: These air conditioners provide cooling for an entire house but use significantly more energy. They typically consume between 3 kW and 3.5 kW per hour.
Window or Portable Air Conditioners: They are often less energy-efficient, using around 3 kW to 4 kW per hour and are more suitable for cooling compact living spaces.

2. Energy Efficiency Rating

An air conditioner’s energy efficiency is measured by its star rating. A higher star rating means better energy efficiency, which reduces running costs. The energy rating provided for air conditioners estimates annual electricity consumption.

3. Electricity Tariffs in Australia

Electricity prices vary across states and territories in Australia. The average electricity rate in 2024 is around 25 to 45 c/kWh. Some areas, such as South Australia and New South Wales, have higher rates, while many other regions have comparatively lower rates.

4. Usage Patterns

Depending on how frequently you use your air conditioner, usage patterns highly affect the costs associated with running it in Australia. Running an air conditioner for 8 hours a day versus 4 hours significantly affects your energy bill.

5. Climate and Weather

In hotter regions of Australia, air conditioners may need to run longer, which leads to increased costs. In places with milder climatic conditions, like Melbourne, air conditioning use is less frequent, leading to lower electricity costs.

Estimating the Cost of Running an Air Conditioner in Australia

The ultimate cost of running an air conditioner in Australia depends upon several factors. However, here, we demonstrate a general estimate of the costs.

The cost of running an air conditioner also varies significantly depending upon the state of your residence, as the electricity rates and climatic conditions differ significantly from state to state.

These rates are the highest in Queensland, state of Australia, where the average daily cost of running an air conditioner is around $9.34. These rates are followed by the Northern Territory, where the daily cost of running an air conditioner is estimated at around $8.42.

These rates significantly decline in the Southern Territory, New South Wales, Western Australia, the capital territory, and Tasmania. In these regions, the daily running costs for air conditioners range from $1.6 to $4.4.

These rates may also depend upon weather and the season of the year. During summer days, the rates may escalate significantly, while during cold climatic conditions, they get significantly lower.

Ways to Reduce the Cost of Running an Air Conditioner

While air conditioning is essential in hot Australian summers, there are ways to minimize electricity expenses:

1. Choosing an Energy-Efficient Product

The best way to reduce your air conditioning costs is to opt for an air conditioner with a high energy rating to save on power consumption.

Read: How to choose the right air conditioning system for your home?

2. Adjust the Right Temperature

Keeping your thermostat at 24-26°C in summer reduces energy consumption compared to lower settings, which can exceed the air conditioning running costs.

3. Use a Timer and Smart Controls

Using a timer and smart controls gives you more control over your air conditioning product. They help you reduce your air conditioner’s running costs by preventing unnecessary power consumption.

4. Improved Home Insulation

Proper insulation of your homes, including double-glazed windows and shading, helps keep cool air inside and reduces the need for excessive air conditioning.

5. Regular Maintenance of Air Conditioner

Cleaning filters and servicing your air conditioner on a regular basis ensures efficient operation, which reduces power wastage.

6. Use Fans for Air Circulation

Ceiling and portable fans can help distribute cool air more effectively. They can also reduce reliance on the air conditioner, reducing air conditioning costs in different climates.

Conclusion

The cost of running an air conditioner in Australia varies depending on several factors, including type, energy efficiency, electricity rates, and usage patterns.

A small split system may cost around $127 per month, while a ducted system could cost over $800.

To reduce costs, choose an energy-efficient model, set optimal temperatures, use timers, improve insulation, and regularly maintain your air conditioning unit. You can stay cool without excessive expenses by being mindful of usage and taking energy-saving steps.