How much does air conditioning cost in 2021?

The number one question we are asked here at Customised Air Conditioning is, 'how much does air conditioning cost?".  The purpose of this article is to shed some light on the running costs of an air conditioner as well as installation and unit costs.  Keep on reading to learn more!

Running Costs

When looking at having an air conditioner installed in your home, we'd like for you to be fully aware of the running costs.

Just like other appliances around your home, the cost of running an air conditioner can depend on the make and model of the appliance and how you use it. For example, the cost of cooling could depend on:

  • The wattage and star rating of the air conditioner
  • Fan speed
  • Size of space being cooled
  • Temperature setting

That being said, the price could be as little as $0.25 per hour for a small split system cooling a small space or ~$3 per hour for a ducted system to cool your entire house.

The overall cost of running your air conditioner over the course of the year depends on a multitude of variables, such as:

  1. The outside temperature.  Given Perth is such a beautiful temperate climate, most of us will get the most out of an air conditioner during those hot summer months and cool winter months.  The rest of the year will typically see much less usage and a corresponding drop in costs.
  2. Model / Brand of air conditioner chosen
  3. How many hours it runs for during the day / night
  4. The effectiveness of insulation in your home

Based on Choice's review, the cost of running an air conditioner will typically range $286 to $586.4 per year.  Please note this can vary.

Unit Costs

For the purpose of this article, we'll consider a split system and a ducted system.

Split System
These are the most common air conditioning systems being installed in Australian households for young and growing families. They contain an internal head unit as well as an external compressor and condenser. Their price range is relatively affordable, provided that they mostly function well in one room. The entire installation, including the unit, can range from $2,000-$6000 for a single split system air conditioner. 

There are a number of cheaper products on the market however we recommend and proudly support proven reputable products from brands such as Daikin, Panasonic and Mitsubishi Electric.

Ducted air con units are more advanced and are less noticeable than other units. They are located within the walls and ceilings of properties which can cool and heat multiple rooms from a central control panel. However, they are more expensive to install and maintain than other air con systems as they require more components. Prices for the unit and installation can range anywhere from $6,000 - $30,000* depending on the size of the building and expected usage. We typically install these units in homes which have multiple bedrooms and entertaining spaces.

As with split systems, there are a number of cheaper products on the market however we recommend and proudly support proven reputable products from brands such as Daikin, Panasonic and Mitsubishi Electric.

When opting for air conditioning and trying to decide between ducting and split, remember that ducting is more expensive because you're also covering multiple rooms at once.  For example, a ducted system that costs $10,000 could cool/heat 5 rooms. Whereas you would need one split system per room so it could be a very similar price.  Most people would opt for ducted systems in this case as it's a neater look and you only require one outdoor unit.


We hope that gives you a clearer idea of costs but we welcome you to contact us directly so we can conduct a full assessment of your space and provide you with an exact quote.  We can then advise estimated runnings costs based on that particular unit.  Call us today on 08 9417 1071

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