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How much does it cost to run Air Conditioning?

These days air conditioning has moved on from being a luxury item to a necessary component of almost any home.

There are a wide variety of AC units from which you can choose, including window box units, wall split systems, portable units, cassette systems, ducted air conditioners and central air conditioning systems.

The type of air conditioning you choose will depend on your needs, but also significantly depend on your budget.

For example, compact and portable units will fit well if you want to heat up or cool down a small space and may need to take the air conditioner with you when you move out.

On the other hand, ducted or central air conditioners and split systems are perfect when it comes to balancing cost with efficiency for larger spaces.

How much does an Air Conditioner cost?

The cost of a new air conditioner depends mostly on the type, size, and brand.

The most well-known brands include Daikin, Mitsubishi, Panasonic, LG, Hitachi, Fujitsu, and Samsung, just to name a few. You can find a wide variety of lesser known brands on the market and a number of these can work just as well as the better-known brands.

Price also depends on the place you buy the AC system from. Sometimes air conditioning retailers offer special discounts or cashback offers.  However, an air conditioning wholesaler will typically offer better pricing than retail outlets.

For the best deal, it is recommended to contact an air conditioning company directly due to their ability to buy from manufacturers directly and pass on further savings from bulk-buying discounts received. You can have a look at our shop or contact us for a quote.

How much does it cost to install an Air Conditioner?

Installing an air conditioner depends on many different factors such as the type and number of units, space available for all components, the degree of difficulty of the installation and materials required.

In Australia, the price may vary from $70 per hour to $110 per hour for a standard installation Technician. However, when you ask for a quote on a new air conditioner install, you will usually receive a total price including installation.

Call the experts for installation

Air Conditioning expert

If you feel tempted to install the AC by yourself, please do not do it. You will need to hire an expert as you need to have proper licencing and certification to do this kind of work.

Also if you do it wrong, in the long run, it will cost you more money.

If you are not an expert, you may damage the walls or electrical grid of your home.

DIY will also void the manufacturer warranty on your new air conditioner unless you are a fully qualified and licenced HVAC mechanic.

Worst case, you may harm yourself or others while installing the AC system.  This could cost you or your loved ones a life.  It surely is not worth the risk.

Other factors that may affect the cost of your AC installation include:

  • The construction material of your house, including the roof.
  • The position of your windows and doors.
  • The size of your windows, doors and walls.
  • The presence or absence of insulation.

How much does it cost to run air conditioning?

Air Conditioning system

When you’re acquiring an air conditioning system, your budget considerations should not only include the cost of the unit/s but also the ongoing energy expenditure.

In Australia, according to a study conducted by Canstar Blue, it was found that the number one factor in deciding which air conditioner to choose is energy-efficiency.

Cooling or heating a room typically depends on room size.  On average, if you are going to cool down a room the cost is between 25 cents to 95 cents per hour.  If you want to warm up a room, the average cost is between 13 cents to 36 cents per hour per room.

This means that on average it will cost you:

  • ~50 cents per hour to cool down a room.
  • ~25 cents per hour to warm up a room.
  • ~$80 – $160 per month per room.
  • Up to $2,000 per year per room.

If you want to make a more precise calculation depending on the size of the room, keep in mind the following:

  • Small room: 13-35 cents per hour.
  • Medium room: 26-70 cents per hour.
  • Large room: 33-95 cents per hour.

For ducted air conditioning, an average home system costs $2.45-$3.45 per hour to run on cooling, vs $1.45-$2.12 on heating.

Contrary to what a lot of people may think, air conditioners are not the largest contributor to energy bills. Many other appliances cost more than air conditioning to run, for example:

  • Kitchen appliances like ovens, stoves and grills.
  • Cleaning appliances like irons and vacuum cleaners.
  • Clothes drying
  • Lightning

Cost of running air conditioning depending on the type

Portable Air Conditioner

The portable air conditioner is the most basic AC system as it doesn’t need an external unit.

It just needs a flexible tube that expels hot air through a window or hole in the wall.

A great advantage of a portable unit is that it can be moved from one place to another as long as you have an outlet for the tube.

The price ranges from $300 to $1300 for the unit alone, but kw rating is usually limited to the smaller end of the scale.

Window or Wall Unit

Window Air Conditioning system

A box unit is installed in the window or wall and it only works to condition one room.

It is mostly seen in small rooms, older style homes and rental properties. It will cool or heat the one room.

The price ranges from $400 to $1400 for the unit alone, but kw rating is usually limited to the smaller end of the scale.

Split System

Split systems have two units: the indoor and the outdoor units.

The external unit connects to the internal unit which can be installed on the wall, under the ceiling or on the floor.

Compared to ducted air conditioning, split systems are 20% to 60% more energy efficient.

The price ranges from $600 to $3,000 for the units alone, with a wide range of kw ratings available from 2 kw to 10 kw.

Ducted Air Conditioner

Ducted Air Conditioning distribute cold or warm air from a central unit.

The price ranges from $2,000 to $10,000 for the AC units alone, but this includes a kw range of 5 – 25 kw, single and three phase units, and standard and premium inverters.

For a more accurate price, contact us for a quote.

How to save energy with air conditioning?

Saving energy with air conditioner

Before investing in an air conditioner, it’s recommended to consider the electricity consumption of all options available.

The energy consumption of an air conditioner is largely depended on its capacity. Air conditioning efficiency is measured by the energy-efficiency ratio (EER). The higher the EER value, the more energy efficient an AC system is. EER is a ratio of the output (capacity) divided by the power input.

Using this formula, the energy efficiency of an air conditioner automatically decreases as the capacity (kw rating) of the system increases. For example, a 2.5 kw wall split aircon will have a greater energy efficiency than a 7 kw system simply as a result of its smaller capacity.

The other part of the equation is the power input. This is where quality and design comes into play. A number of manufacturers have produced AC units that are more energy efficient than others. This leads to better star ratings.

In the ducted air conditioning range, there is the option to select a Premium inverter over a Standard inverter model. The Premium models have improved refrigerant control technology and various other cutting-edge components that all work to improve efficiency of the system.  Premium inverters can also ramp up or down in response to the specific heating or cooling demand on the system, further saving on running costs and helping reduce your energy bills.

If considering a ducted air conditioner, the zoning system paired with it can have a significant impact on overall efficiency. Including a bypass in the zoning design means that air can circulate when required via a bypass, rather than having to have a constant zone somewhere in the house that always has to be open when the system is in use.

The inclusion of sensors in every room is another valuable ducted feature available. Room sensors allow more accurate temperature sensing and control, ensuring money is not wasted in unnecessary heating or cooling. This also allows for tailored comfort, which will be a big hit with everyone in the home.

Another consideration when selecting or upgrading an air conditioner is Wi-Fi capability.  Having Wi-Fi connected to an air conditioner allows the system to be turned off remotely when away from home if you’ve forgotten to do so.

Furthermore, a system with Wi-Fi can be turned on before arriving home to gradually start the heating or cooling process, rather than overloading it and drawing excessive power as soon as you walk in the door.  If the system hasn’t been turned on at a suitable time, it will take longer to bring the room or whole house to the desired temperature and cost you more money to do so.

To save electricity with your air conditioner you should also consider:

  • Reducing excessive heat sources.
  • Getting the correctly sized unit for the area to be conditioned.
  • Turning off your air conditioner at night or using economy settings.
  • Setting the thermostat at a constant temperature.

To find out the power input of an air conditioner and calculate how much your annual electricity cost could be, the Australian Government explains how you can easily do the calculations on their website.

If you have any questions or need a quote for an AC system of your interest, please do not hesitate to contact us.

Remember that before making a buying decision you should analyse and carefully consider all of your options.