Air Conditioning Costs & Efficiencies
Australian households spend about 40% of their energy budget to cool and heat their homes.
Recent Canstar Blue data shows yearly running costs that range from $50 to $580.
These costs change based on the unit’s size, where you live, and how you use it.
With this guide, we will help you pick the right system that balances comfort with cost. You’ll learn about different cooling methods and their efficiency ratings.
We’ll get into evaporative cooling vs split systems, plus compare ducted and split system running costs.
As Brisbane air conditioning installation experts, our goal is to find economical solutions that work for your home.
Table of Contents
Air Conditioner Running Costs by System Type
The right air conditioning system for your home depends largely on running costs.
Different cooling systems can substantially affect your electricity bills based on their efficiency levels and operating costs.
Ceiling Fans
Ceiling fans are the most budget-friendly cooling option. Running costs range from 0.2c to 1.9c per hour.
Summer usage of 8 hours daily costs between $2 and $20, depending on the speed settings.
DC motor fans are much more efficient than AC motor fans. A DC fan runs all summer for about $1.50 per day at low speeds, while an AC fan costs around $5.
Portable Air Conditioners
The hourly operating cost of portable units ranges from $0.25 to $0.40. These units have lower upfront costs, but annual expenses range from $150 to $385.
A portable air conditioner uses twice as much power as an equivalent split-system. These units work best in spaces where permanent system installation isn’t an option.
Split Systems
Split air conditioners use between $0.40 to $0.55 per hour. Yearly costs range from $305 to $615 with average use.
A 2.5kW unit costs about $75 per year at 24°C, while a 5kW system costs about $200. These systems balance efficiency and cooling power effectively.
Ducted Systems
The operating costs of ducted air conditioners run higher at $0.90 to $1.45 per hour.
Yearly expenses range from $915 to $1,835. Still, they cool entire homes efficiently. System size, energy rating, and zoning features determine running costs.
Standard ducted units use around $2.30 per hour for summer cooling.
Multihead Split System
Multihead split systems consume $0.55 to $0.75 per hour. Yearly costs range from $460 to $920, depending on setup and usage.
A Mitsubishi Electric MXZ Series 7.1KW System cooling three rooms year-round costs about $1,075 annually.
System Comparisons: Energy Efficiency and Cost Breakdown
A side-by-side comparison of air conditioning systems reveals clear differences in efficiency and long-term costs.
Portable air conditioners cost twice as much to run as split-system units of the same size. Their lower upfront cost ends up being more expensive over time.
Power consumption data clearly shows the efficiency gap. Small split systems use 0.65kW per hour, while portable systems consume 1.2kW. This means you’ll pay about $125 per season for small split systems and $265 for portable units.
Medium split systems (4–6kW) need about 1.4kW per hour and cost $250 per season. Large split systems (over 6kW) consume 2.2kW hourly, with seasonal costs of $405.
Split systems have an extra advantage because they’re inverter models that adjust their output as needed. These systems run at very low power in well-insulated homes to maintain comfort. Each extra degree of heating or cooling adds 5% to 10% to your energy use.
Ducted systems use much more energy, consuming between 3kW and 3.5kW per hour. Ducted evaporative coolers are nowhere near as power-hungry as refrigerative air conditioners.
Multi-split systems strike a balance in efficiency. A medium-sized house (160 m²) with a 3.5-star multi-split system costs about $140 per year to run. A 3-star ducted system in the same house costs roughly $190.
Star ratings are a quick way to compare efficiency between similar-sized units. Higher star ratings mean better efficiency, and upgrading to newer models can cut energy use by 20–30%.
Energy Efficiency Ratings and What They Mean
Australia’s air conditioning efficiency relies on its star rating system.
These ratings help you compare how well different units turn electricity into cooling or heating power. Units with more stars use less energy than similar models.
Air conditioners must meet Minimum Energy Performance Standards. Non-ducted household units display the Zoned Energy Rating Label (ZERL). This label came into effect in April 2020 and shows efficiency ratings for three climate zones: hot (Brisbane/Darwin), average (Sydney/Perth/Adelaide), and cold (Melbourne/Hobart/Canberra).
Blue stars show cooling efficiency while red stars indicate heating performance. Ratings typically range from 1–6 stars, and top performers might earn extra “super efficiency” stars.
Each extra star reduces energy consumption by 20–30% compared to lower-rated models.
The label shows yearly energy use in kilowatt-hours (kWh) for heating and cooling in each climate zone. You can calculate annual costs by multiplying this number by your electricity rate. A unit using 318 kWh annually at $0.50/kWh would cost $150 per year.
Energy Efficiency Ratio (EER) for cooling and Coefficient of Performance (COP) for heating form the technical foundation of these ratings. An air conditioner producing 5kW of cooling while using 1.5kW of power has an EER of 3.33. Higher ratios mean better efficiency.
Noise levels appear in decibels for both indoor and outdoor components. A quiet home registers around 40dBA, while normal conversation reaches about 60dBA.
Smart buyers compare similar-sized units and focus on their local climate zone since regional conditions significantly affect performance and efficiency.
Factors That Affect Running Costs
Your air conditioning costs depend on several factors beyond the type of system you choose.
A good understanding of these variables will help you select the best air conditioning system for your home.
The temperature you set directly affects your running costs. Your operating costs can increase by about 10% with just a one-degree reduction in thermostat settings.
Experts recommend setting air conditioners to 25–27°C in summer. Each extra degree of cooling uses 5–10% more energy.
Room features play a significant role in efficiency. Rooms that are larger or face north or west, with windows, require more energy to cool, which increases operating costs.
Your system has to work harder when insulation is poor, leading to higher cooling needs. The unit’s size and energy efficiency directly affect costs. A unit that’s too small will run continuously and struggle, while an oversized one cools too quickly and wastes energy through frequent cycling.
Units with higher star ratings work more efficiently and usually cost less to run. Homeowners often overlook maintenance. Your system uses more power when filters and components get dirty.
Regular air conditioning service checks will help you achieve optimal efficiency and avoid expensive breakdowns. The energy your air conditioner uses in standby mode can make up 17–31% of your home’s heating and cooling costs.
How you use your system and outside conditions affect expenses, too. Systems work harder during peak heat hours. You can set higher temperatures and reduce costs by using ceiling fans with air conditioning, which can make spaces feel 2–3°C cooler.
Climate zones make a big difference in costs. Systems in cold zones like Melbourne or hot zones like Darwin run longer than those in average zones like Sydney, resulting in higher running costs.
Comparison Table
|
System Type |
Hourly Running Cost |
Annual Running Cost |
Power Consumption |
Key Efficiency Notes |
|
Ceiling Fans |
0.2c – 1.9c |
2.20 – 20.92* |
Not mentioned |
DC motors prove more efficient (AUD 1.51/summer) compared to AC motors (AUD 4.82/summer) |
|
Portable AC |
0.23 – 0.38 |
150 – 400 |
1.2kW per hour |
Running costs double those of equivalent split system |
|
Split Systems |
0.38 – 0.54 |
300 – 600 |
0.65kW (small units) – 2.15kW (large units) |
Balanced efficiency and cooling power; inverter models adjust output based on needs |
|
Ducted Systems |
0.92 – 1.45 |
900 – 1,800 |
3kW – 3.5kW per hour |
Highest operating costs with whole-home cooling benefits |
|
Multihead Split Systems |
0.54 – 0.76 |
450 – 900 |
Not mentioned |
Moderate efficiency levels; 3.5-star system costs about $140 yearly** |
*Based on 8 hours daily use during summer (90 days)
**For a medium-sized house (160m²)
Choose the Right Air Conditioning System for Your Budget
With so many air conditioning options on the market, finding the right one for your home—and your budget—can feel overwhelming.
That’s where BG Electrical & Air Con comes in.
We take the guesswork out of cooling by helping you compare systems based on performance, efficiency and long-term running costs.
Whether you’re after something cost-effective or energy-efficient, our team will recommend a solution that matches your needs and fits your budget. From personalised advice to seamless installation, BG Electrical & Air Con is here to make it simple.
Get in touch today and let us help you plan a smarter, more affordable way to stay cool.