Worried About Your Next Electricity Bill?
Running an air conditioner can cost you anywhere from $0.60 to $2.70 per hour, and that adds up fast. Whether you’re cooling your living room in summer or heating multiple bedrooms in winter, your energy usage habits can silently inflate your bill.
Electricity Costs by System Type
Here’s a breakdown of electricity use for the most common systems used:
Estimates based on 30c/kWh residential tariff.
Actual Cost: Hourly, Daily, and Monthly
Winter Use: Heating with an Air Conditioner
While most people focus on cooling costs, heating in winter can generate higher electricity bills.
Example: A four-bedroom home using split systems for heating saw a winter bill of $320, even with moderate use.
Why?
Reverse-cycle systems use more energy in heating mode.
Running multiple units increases total consumption.
Overnight or continuous use adds hidden costs.
Set heating to 19–21°C, use timers, and clean filters to reduce costs.
Should You Upgrade Your Air Conditioner?
Yes, especially if your current unit is over 10 years old or has an energy rating below 4 stars. Older systems tend to consume more electricity, and that directly affects your annual energy bill.
Here’s what you might be spending per year if you use your air conditioner around 8 hours a day:
A 2-star rated unit can cost you approximately $450 per year.
A 3-star system brings that down to about $380 annually.
A 4-star unit lowers the cost further to around $320 per year.
With a 5-star air conditioner, your annual running cost can drop to about $270.
✨ By upgrading to a modern, high-efficiency system, you could reduce your air conditioning costs by up to 40%, while enjoying a quieter, smarter, and more sustainable solution for your home.
Factors That Influence Costs
- System size (kW): Oversized units waste energy
- Star rating / EER: Higher stars = lower bills
- Thermostat habits: Each degree can affect usage by ~10%
- Insulation: Poor sealing increases energy demand
- Electricity tariffs: Peak hours can double the rate
FAQ: How much does it cost to run an air conditioner?
- What’s the cheapest air conditioner to run?
Split systems with 4–5 star ratings, ideal for single rooms.
- Does heating cost more than cooling?
Often yes, especially in cold zones or with older units.
- How do I calculate my actual cost?
Multiply the input kW by your tariff in cents per kWh.
- Should I turn my AC off or leave it on?
Turn it off if you’re gone more than 30 minutes. Use timers when possible.
7 Smart Ways to Lower Your Air Conditioner Costs.
1. Set the right temperature
Stick to 24–25°C in summer and 19–21°C in winter. Just one degree makes a difference, for comfort and your bill.
2. Clean the filters
Dirty filters force the system to use more power. A quick clean every 2–4 weeks can save up to 20%.
3. Run it off-peak
If your energy plan has time-based rates, use your AC during cheaper hours to save more.
6. Use timers or smart controls
Don’t leave the unit running all day. A simple timer avoids waste and saves money.
7. Upgrade your unit
Older systems can cost hundreds more per year. Newer, 5-star models use up to 40% less energy.
Want to Save on Energy Bills?
✉️ Get a personalised energy quote based on your home and usage
🏠 Check your eligibility for air conditioner rebates in Victoria
