You open your energy bill and feel a familiar worry. It’s summer, and you’re sure you haven’t used the air conditioner much. You kept the doors closed and turned it off when you left, but the bill still seems too high.
You’re not alone.
At PSC Energy, we hear this from homeowners all the time. Air conditioners make life bearable in summer (and cosy in winter if you have a reverse-cycle setup), but the fear of a huge bill can make you hesitate to turn them on. The problem is that most people don’t know what it costs to run their unit. When you guess, you’ll get more surprises.
In this article, you’ll learn about the following:
- Air Conditioner Running Costs for Cooling in Summer
- How Much Does Reverse-Cycle Heating Cost in Winter?
- What Affects the Running Cost of Your Air Conditioner?
- How to Lower Your Air Conditioner Costs
- How to Use Solar Panels to Power Your Air Conditioner
- FAQ: Running Costs of Air Conditioning
By the end of this article, you’ll understand how much it really costs to run your air conditioner. You’ll also learn how to manage your energy use and avoid unexpected bills.
Air Conditioner Running Costs for Cooling in Summer
The cost of running an air conditioner depends on your unit’s size, how long you use it, and your electricity rate. At PSC Energy, we use an average price of $0.38 per kilowatt-hour (kWh).
If you have solar panels or a solar battery, you can cut your energy costs a lot, no matter how much you use your air conditioner.
Here’s what different types of air conditioning systems typically cost per month during summer when cooling for four hours a day:
These numbers assume a modern reverse-cycle air conditioner working under average Australian summer conditions.
Your costs will change based on your local climate, how well your home is insulated, and how efficient your system is.
If you’re interested in learning a bit more about solar panels and energy systems, you might want to check out the following article titled, Are Solar Panels Worth It in NSW, Australia? A Price Breakdown for 2025.
How Much Does Reverse-Cycle Heating Cost in Winter?
Heating with a reverse-cycle air conditioner can be cheaper than cooling in summer. That’s because reverse-cycle systems are more efficient in heating mode.
Reverse-cycle heating works differently from electric heaters. Instead of making heat, it moves warmth from outside into your home, which can be up to four times more efficient.
Here are typical winter heating costs for common air con setups:
For example, running a 2 kW electric heater for four hours a day might cost over $100 a month. If you use portable heaters, switching to a reverse-cycle unit could cut your heating bill by half.
If you’re interested in learning a bit more about how to save with solar, you might want to check out the following article titled, Self-Consumption: How to Increase Solar Energy Use.
What Affects the Running Cost of Your Air Conditioner?
Several things can change how much you pay to run your air conditioner.
Even if you have the same unit as your neighbour, your bill might be higher or lower depending on how you use it.
If you have solar, your costs will be much lower than if you don’t have a home energy system.
These are the key factors that impact air conditioning cost:
System Size:
Larger systems use more power. A 2.5 kW unit in a bedroom uses far less electricity than a 10 kW ducted system cooling your whole house.
Efficiency Rating:
Check for the Energy Star label on your unit. More stars mean it uses less energy.
Mode of Operation:
Cooling in summer usually uses more electricity than heating in winter. Still, reverse-cycle heating costs less than using traditional electric heaters.
Usage Patterns:
Running your air conditioner for one hour a day costs much less than using it all afternoon. Our examples use four hours per day. If you use it longer, your costs will be higher.
Electricity Tariff:
The price you pay for each kWh depends on your provider and where you live. Some people pay $0.25, while others pay $0.40 or more. If you have a time-of-use plan, using your air conditioner during peak hours will cost extra.
Climate and Insulation:
If you live in a very hot or cold area, your system has to work harder to keep your home comfortable. Poor insulation also means your air conditioner will run longer and use more energy.
Set Temperature:
Every degree makes a difference. In summer, setting your air conditioner to 21°C instead of 25°C can use 20-30% more energy. Try to keep your settings in the efficient range.
If you’re interested in learning a bit more about power and energy, you might want to check out the following article titled, Power vs. Energy: kW vs. kWh.
How to Lower Your Air Conditioner Costs
If you want to stay comfortable and keep your bills low, here are some easy ways to reduce your running costs:
Install solar panels or batteries: You knew we’d mention this one again. Producing your own power can dramatically lower your bill.
Millions of Australians use rooftop solar, which is more affordable thanks to the federal STC rebate. There is also a federal battery rebate if you want to install a home battery to store power for use during peak hours.
Set the right temperature: In summer, set your air conditioner to 24 or 25 °C. In winter, 18 to 20 °C is enough to stay warm. Every extra degree adds up to 10% to your electricity use.
Use fans to help: Fans are cheap to run and help move air around. They can take some pressure off your air conditioner, so you can set the thermostat a bit higher and still feel comfortable.
Cool or heat only the rooms you use: Close doors to unused rooms. If you have a ducted system, turn off zones you aren’t using.
Review your electricity plan: See if you have a time-of-use plan. If so, try to use your air conditioner during off-peak hours when rates are lower. Some providers even offer free power at certain times, often in the middle of the day.
Upgrade your old system: Older air conditioners can use twice as much power as new ones. Check the energy rating label or look up your unit’s details online.
In NSW, Victoria and South Australia, you might qualify for a rebate to upgrade to a more efficient system.
If you’re interested in learning a bit more about solar panel efficiencies, you might want to check out the following article titled, How Efficient Are Solar Panels? Shade, Heat, and Seasonal Considerations in NSW, Australia.
How to Use Solar Panels to Power Your Air Conditioner
If you want to use solar power for your air conditioner, try to run it when your panels are making the most electricity. This usually means using your air con during the day.
When you know how your system uses electricity, it’s easier to plan, stay comfortable, and use less power from the grid.
How Much Power Does an Air Conditioner Use?
When you see an air conditioner rated at 14 kW, you might think that’s how much electricity it uses. But that number is the heating or cooling output, not the actual electricity use. Modern systems are more efficient, so the real power draw is usually much lower.
Do Air Conditioners Use the Same Amount of Power All the Time?
No, they don’t. Most modern air conditioners use inverter technology. This means the compressor changes speed based on how much heating or cooling you need, instead of just turning on and off. This makes the unit more efficient and easier for your solar or battery system to handle.
At first, your air conditioner may use more power to reach your set temperature. After that, it uses less, and sometimes it even turns off for a while. So even if your unit is rated at 7 kW, it might use half that or less once the room reaches the right temperature.
Will My Solar System Cover My Air Conditioner’s Power Needs?
Let’s say your air conditioner needs 7 kW at full power. A 7 kW solar system can produce that much for a few hours around midday, and less if it’s cloudy or your panels aren’t in the best spot. So, sometimes your air conditioner draws power from the grid.
The good news is most air conditioners don’t run at full power all day. Once your home is at the right temperature, the unit usually runs at a lower level. This makes it easier for your solar panels to keep up. If you have a battery, it can help during late afternoons or cloudy weather.
Your solar system is your main power source, and your battery acts as a backup to cover times when the sun isn’t shining.
When Is the Best Time to Run My Air Conditioner with Solar?
The best time to run your air conditioner is during the day when your solar panels are producing the most energy.
Try to pre-cool or pre-heat your home from late morning to early afternoon. Aim to have your house comfortable by 3 pm. If you have a battery, it can take over after sunset.
Remember, many Australian homes don’t keep heat or cool air for long. Brick veneer walls, plasterboard, and light insulation don’t store warmth or cold very well.
Pre-cooling or pre-heating won’t last all night. If you’re building or renovating, consider using heavier materials or better insulation to help keep your home comfortable.
What Should I Ask My Installer About Solar and Air Conditioning?
Before installing or upgrading your solar and air conditioning, talk to your installer about:
- The actual electrical power your air con draws (not just the thermal output).
- When you use your system most, daytime, evening, or overnight.
- The seasonal balance. Solar often covers summer cooling well, but winter heating may need more support.
- Your comfort habits. Do you run it overnight or just during the day?
- Any data from smart meters or energy monitors, which can show how much power your air con really uses.
This information helps your installer choose the right size for your solar and battery system. That way, you’ll have enough solar to run your air conditioner during the day and enough battery to cover it at night or when it’s cloudy.
If you’re interested in learning a bit more about the importance of monitoring and programming your energy, you might want to check out the following article titled, What is Consumption Monitoring?
We like our air conditioners the same way we like our jokes: dry and a bit cold.
Running an air conditioner doesn’t have to be expensive. When you know what affects the cost, you can make better choices. Use your system wisely, keep your temperature settings efficient, and look for upgrades and rebates.
At PSC Energy, we believe everyone should be able to stay cool in summer and warm in winter. If you want to improve your comfort and lower your costs, we’re here to help.
Let us know if you’d like advice on choosing a solar home energy system to help lower your cooling and heating costs.
If you’re interested in learning a bit more about solar and battery rebates in NSW, Australia, you might want to check out the following article titled, Ultimate Guide to Australia’s 2025 Solar Rebate and Battery Rebate: Federal and NSW Rebate for Solar.
FAQ: Running Costs of Air Conditioning
How much does it cost to run an air conditioner per hour in Australia?
The cost to run an air conditioner per hour depends on its size and efficiency.
Is it cheaper to run a reverse-cycle air conditioner or an electric heater?
Yes, a reverse-cycle air conditioner is cheaper to run than an electric heater. Reverse-cycle systems use heat pump technology, which is around three to four times more efficient than electric resistance heaters.
Heating a medium room with a reverse-cycle unit may cost $50/month, while a portable electric heater could cost over $100/month.
What affects how much it costs to run an air conditioner?
Several factors affect your air conditioner’s running cost:
- Size of the unit (larger systems use more power).
- Energy efficiency rating (more stars = lower usage).
- Number of hours used per day.
- Set temperature (each degree can raise costs by up to 10%).
- Electricity tariff and time-of-use pricing.
- Climate and insulation in your home.
- Whether you use zoning to cool or heat certain parts of your home.
What temperature should I set my air conditioner to save money?
To save money, set your air conditioner to 24–25 °C in summer and 18–20 °C in winter. Every degree outside this range can increase your energy use by 5–10%. Using fans to support your system can also help reduce your energy use while keeping you comfortable.
Can I reduce air conditioning costs with ceiling fans?
Yes, using ceiling or pedestal fans can help reduce air conditioning costs. Fans use very little electricity and help circulate air, making your room feel cooler or warmer. This lets you raise or lower your air conditioner’s temperature setting by a degree or two, saving power and money.
How can I reduce my air conditioner energy bill?
You can reduce your air conditioning bill by:
- Setting it to the recommended temperature range.
- Using fans to support airflow.
- Cooling or heating only rooms in use.
- Closing doors to unused spaces.
- Using zoning features in ducted systems.
- Running your system during off-peak hours.
- Upgrading to a high-efficiency model.
- Installing solar panels or a battery to power your system.
How do I check the efficiency of my air conditioner?
Check the energy rating label on the front or side of your unit. You can also search the brand and model number online. The more stars it has, the more efficient it is. If your system is over 10 years old, it may be using much more electricity than newer models.
Are there rebates to help upgrade my air conditioner?
Yes, there are rebates available in NSW, Victoria, and South Australia that can help you upgrade to a newer, more efficient air conditioner.
These programs are often part of state energy-saving schemes. You may also qualify for federal rebates for solar panels and batteries, which can further reduce your energy costs.
