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2026-27 rates are live. DMO, VDO and solar feed-in tariffs updated for July 2026. See what changed

Heating and cooling

How Much It Costs to Run an Air Conditioner in Australia

Hourly and yearly running costs for split, ducted and portable air conditioners on 2026-27 electricity prices, plus a calculator for your own unit and hours.

Checked against regulator sources, October 2026

Typical draw
1,500 W
Medium split system, 5 kW cooling
Usage assumed
2,738 kWh
a year
NSW cost
$907
a year, Ausgrid
Cost an hour
50c
NSW reference rate
watts
hrs
days

Use decimals for short times. 15 minutes is 0.25 hours.

State or territory

Air conditioner: cost a year

$907

49.7c an hour$2.49 a day$17.40 a week$75.59 a month
How the cost is worked out
Energy usedper year2,738 kWh
Electricity priceAusgrid, flat rate33.14c
Share of a typical homeagainst 4,000 kWh a year68%
Cost a year, GST included$907.13

Appliances on a thermostat cycle on and off, so real use is often lower than the full power draw.

Prices are 2026-27 regulated rates including GST. Market offers can be cheaper. Estimates only.

What it costs to run an air conditioner in each state

The table uses a medium split system drawing about 1.5 kW for five hours a day, every day. That is a summer evening of cooling or a winter evening of heating in a living area.

Air conditioner: medium split system, 5 kw cooling, 5 hours a day, every day
StateRateA monthA year
TasmaniaAurora Energy24.75c$56.46$678
QueenslandEnergex27.97c$63.82$766
Victoriaaverage of five networks28.2c$64.32$772
Northern TerritoryJacana Energy31.68c$72.27$867
New South WalesAusgrid33.14c$75.59$907
Western AustraliaSynergy33.26c$75.88$911
Australian Capital TerritoryEvoenergy network36.95c$84.30$1,012
South AustraliaSA Power Networks41.91c$95.61$1,147
Flat regulated usage rate for each state's main network in 2026-27, including GST. Victoria uses the average of its five networks.

Running costs by type and size

The cooling capacity in kW printed on the box is the heat the unit moves, not the electricity it uses. Divide capacity by the unit's efficiency and you get the input power. Modern split systems move three to four times more heat than the electricity they draw, so a 5 kW unit needs around 1.5 kW of electricity at full output. The input power is on the energy rating label and in the specifications.

Running costs by type, 5 hours a day, every day
TypePowerCost an hourA year
Small split system, 2.5 kW cooling750 W25c$454
Medium split system, 5 kW cooling1,500 W50c$907
Large split system, 7 kW cooling2,100 W70c$1,270
Ducted system, 14 kW cooling4,300 W142c$2,600
Portable air conditioner1,100 W36c$665
Priced at the Ausgrid reference rate of 33.14c/kWh. Use the calculator for your own state and hours.

The SA Government publishes its own hourly estimates, which come out in the same range: a split system for a room up to 36 m² at 69c to 93c an hour on a flat rate, and a ducted refrigerative system cooling 125 m² at $1.79 to $2.42 an hour. Evaporative coolers cost far less to run, at 44c to 59c an hour for a ducted system including water.

Is an air conditioner cheaper than a heater?

Almost always, yes. A fan heater, oil column or panel heater turns each unit of electricity into one unit of heat. A reverse cycle air conditioner moves heat in from outside, delivering three to six units of heat for the same electricity. The SA Government estimates a small reverse cycle unit costs 10c to 14c an hour to heat a 12 m² room, against 46c to 62c for a panel heater and 92c to $1.25 for a portable heater.

Heating a small room: SA Government hourly estimates on a flat rate
HeaterCost an hour
Small reverse cycle air conditioner10-14c
Electric panel heater46-62c
Electric portable heater92c-$1.25

If you are choosing between appliances to keep warm this winter, our cheapest way to heat a home guide compares every option.

How to cut air conditioning costs

  1. Set a sensible temperature

    The SA Government suggests 24°C to 27°C for cooling and 18°C to 21°C for heating. Each degree closer to the outside temperature saves 5% to 10%.

  2. Only cool the rooms you use

    Close internal doors and use zone controls on a ducted system. Cooling a closed living room costs far less than the whole house.

  3. Block the sun first

    Close blinds and curtains on north and west windows before the day heats up. It is cheaper to keep heat out than to remove it.

  4. Clean the filters

    Dusty filters make the unit work harder. Most indoor units have filters you can rinse every few weeks during heavy use.

  5. Run it in cheaper hours

    On a time-of-use plan, pre-cool the house before the 4pm peak, or use free midday power from the Solar Sharer Offer.

Check the zoned energy label

Non-ducted air conditioners sold in Australia carry a zoned energy rating label with separate ratings for hot, average and cold climates. Compare models on the rating for your zone, not just the star count.

Questions about air conditioner running costs

It depends on the size of the unit and your rate. On the NSW Ausgrid reference price, a small split system drawing about 750 W costs around 25c an hour, a medium 1.5 kW unit about 50c and a large ducted system drawing 4.3 kW about 142c.

Usually not. Running a unit while nobody is home uses energy for no benefit. The exception is a well-insulated home on a time-of-use plan, where cooling in cheap midday hours and coasting through the peak can cost less. Our guide on leaving the air con on covers this in detail.

Compared with an electric heater, almost always. A reverse cycle unit delivers three to six units of heat per unit of electricity, while a fan, panel or oil heater delivers one. The SA Government estimates a small reverse cycle unit costs 10c to 14c an hour to heat a small room, against 46c or more for a panel heater.

A ducted system drawing 4.3 kW for five hours a day, all year, would cost about $2,600 on the Ausgrid reference price. Most homes run ducted systems for part of the year and with only some zones open, so real costs are usually lower.

The SA Government suggests 24°C to 27°C for cooling and 18°C to 21°C for heating. Each degree further from the outside temperature adds about 5% to 10% to energy use, according to energy.gov.au.

Sources

Every rate on this page comes from the regulator or the regulated retailer. Last checked October 2026. Prices include GST unless we say otherwise.