How much does it cost to run an air conditioner?
5 December, 2025
Key Takeaway
Running an air conditioner in Australia can cost anywhere from a dollar to several dollars per hour, depending on the size of the unit, its energy rating, the climate where you live, and the temperature you set. The most important factor is how efficiently your system runs day to day. Smart air conditioning can reduce wasted energy and noticeably lower operating costs.
What affects the cost of running an air conditioner?
There is no single cost that applies to every home because several things change how much energy an air con needs to use. Electricity prices vary by state and season, and every home has a different layout and level of insulation. Here are the most important factors that influence running costs.
The size and type of your system
Bigger systems use more electricity because they move more air. Multi room ducted systems cost more to run than single room split systems because they control larger areas. A poorly sized system can also cycle on and off too often, which increases power use.
Your local climate
Hot and humid climates like Queensland and northern NSW require more cooling hours each year. Cooler climates may need more heating instead. The more extreme the temperature outside, the harder your air con must work.
Your temperature settings
Every degree matters. Lowering the temperature in summer by even one degree can increase energy use. Raising the temperature in winter also has a similar effect. Many energy agencies recommend around 24 to 25 degrees in summer and around 18 to 20 degrees in winter for a balance of comfort and efficiency.
How you use the system
Leaving unused rooms open, cooling the entire house when only one part is being used, or forgetting to turn the system off can all increase running costs. Daily habits play a large role in how much electricity your air con uses.
How to estimate the cost per hour
You can calculate a rough estimate by multiplying the power input of your system by your electricity rate. Most ducted systems use between 2 and 7 kilowatts of power while running. For example:
• A 3 kilowatt running load
• At 35 cents per kilowatt hour
• Costs a little over 1 dollar per hour to run
A medium sized ducted system running on a typical summer day may add several dollars to your daily power bill. Heating usually costs more than cooling because it requires more energy.
This is only a guide because real usage changes constantly. A system may ramp up power early then settle into a lower load as it maintains your chosen temperature.
How smart air conditioning lowers running costs?
Smart air conditioning does not reduce the price of electricity, but it does reduce the amount of electricity you need to stay comfortable. It does this in several ways.
Room by room control
Zoning and temperature sensors reduce the need to heat or cool unused spaces. This is one of the simplest ways to avoid wasted energy.
More accurate temperature readings
Sensors in the rooms you actually use prevent overrunning. Hallway thermostats can cause systems to run longer than required because they do not represent real living conditions.
Better daily habits
Scheduling helps you cool or warm your home only when needed. Remote access helps stop the system from running when the house is empty. These small changes add up quickly over time.
A smaller and more efficient system
Because a smart system never needs to heat or cool the entire house at once, homeowners can often install a smaller unit that uses less energy each day.
Learn how MyPlaceIQ can save you up to 46% on air-con running costs. MyPlaceIQ is a super smart air-conditioning system that integrates with a range of smart home products that increase your comfort, control and most importantly reduces your energy bill.
