More than 1 in 4 Australians, 5.7 million people, have gone without heating or cooling when they needed it because of the cost. This is a common trap that we see our clients fall into. They only think about the costs of purchasing an AC unit and installation, and end up getting blindsided later by their energy bill, and follow up service and repair costs. By the end of this guide, you’ll know what running, installing, servicing and repairing an air conditioner costs, and how to budget around maintenance costs.
What drives your air conditioning running costs?
Four things determine what you’ll pay to run an air conditioner in Perth: your unit’s size, how well your home holds a temperature, how many hours a day it runs, and its energy star rating. Get any one of these wrong and you’ll notice it on your power bill before you notice anything else.
Home size and construction matter more than most people expect. A larger room simply takes more energy to cool, but so does a poorly insulated one. Older Perth homes with brick veneer, high ceilings, or large west-facing windows heat up faster in the afternoon sun, which means the system has to work harder to hold the same temperature as a newer, better-insulated build. If you’ve noticed your unit running flat out on hot days without quite keeping up, insulation and window coverage are often the real culprit, not the unit itself.
Getting the unit size right is just as important. Split systems are typically sized from around 2kW up to 9kW or more, matched to the size of the room or zone they’re cooling. An undersized unit runs constantly trying to keep up, which wears it out faster and still leaves the room uncomfortable. An oversized unit cools the room quickly but cycles on and off more often, and a bigger compressor pulling more power each time it kicks in adds up over a summer.
Hours of use is the multiplier on everything else. As a rough example, a small split system typically draws around 0.7 to 0.9kW of power, a medium system around 1.0 to 1.1kW, and a large system 1.2 to 1.8kW. At Synergy’s 2026 residential rate of 33.26 cents per kWh, that works out to roughly $0.25 to $0.30 an hour for a 2.5kW unit, and closer to $0.50 an hour for a 5kW system. Run either for six hours a day through a hot stretch, and the difference between them shows up clearly by the end of the month.
Star rating is the lever most people ignore. Every extra star on an air conditioner’s Zoned Energy Rating Label cuts annual energy consumption by roughly 15 to 25%, according to energyrating.gov.au. A 7.5-star split system with a 2.65kW cooling capacity can save $2,866.40 over 10 years compared with a 2-star unit of the same output, a saving that’s easy to overlook when you’re focused on the purchase price rather than the decade it’ll be running.
None of these four levers work in isolation. The right-sized, well-rated unit in a poorly insulated room can still cost more to run than a modest unit in a home that holds its temperature well. Worth keeping in mind before you look at what installing one actually costs.
What are typical air conditioning installation costs in Australia?
Typically, split system installation and supply can cost $1,800 to $4,500. Ducted air con supply and install can cost between $10,000 to $18,000.
The variation in price usually boils down to the system type, capacity, house layout and zoning.
A medium split system unit itself can cost between $800 to $1,800. Installation costs are usually around $800 to $1,500 for standard installation. Split system air conditioners require less work and are simpler and faster to install than ducted air conditioners. They are great if your home is smaller or you only want air conditioning installed in specific rooms. Some houses can also be unsuitable for ducted air conditioning due to limited space.
A ducted air conditioning system generally has higher upfront costs. Medium ducted air con units can cost between $4,500 to $5,200 and installation can cost a further $8,000 to $12,000. Ducted air con installation cost varies depending on how many zones are needed and home layout complexity. For example, some older homes use solid internal brick walls which can make wall controller and return air grill installation more difficult. Designing a ducted system for multi-storey buildings adds to the complexity, as installers often have to create dropper ducts to carry air downstairs.
How much does it cost to service an air conditioner?
A routine split system service typically costs between $75 and $200. That covers a filter, coil and fin clean, testing the thermostat, and checking the electrical components for faults.
Ducted systems cost a little more to service, usually $80 to $250, since there’s more to check. The basics are the same, checking AC zones and refrigerant levels, but a ducted service also means checking the ductwork in the roof cavity for tears or leaks, and measuring airflow across the different zones in the house.
At Simply Cool, we’ve heard plenty of stories from customers who were told to get professional service for their unit two or three times a year. That’s simply not the case. Once a year is enough for most systems. We’d only bump that to twice a year if your unit is getting on in age, or there’s construction nearby that’s likely to clog your outdoor unit faster than usual.
What’s important is cleaning your filter two to three times a year. It’s one job you don’t need us for. Every unit is different, so check your product manual for the exact steps. If you skip it for a couple of years, dust can build-up and strain the compressor, essentially shortening the unit’s lifespan, and pushes your power bill up. If you’re ever unsure, ask one of our technicians next time we’re out for a service. They’re happy to walk you through it.
Budgeting for repairs: what things cost when they break
AC owners often get burnt by repair bills as they are usually an unexpected expense. Technicians usually charge their repair fees based on what is broken. Here are some common repair jobs we often come across and how much they cost:
- Refrigerant leak or filter repair: from $350 to 800
- Faulty printed circuit board: from $750 to $2,400
- Faulty compressor: from $1,200 for split system and $3,000 for ducted
The best way to prolong the life of your air conditioner is to get your unit consistently serviced to clean any debris and find faults early, to prevent bigger bills once the fault has ballooned.
There are a few things you can do to prevent costly repairs, including occasionally running the system during winter to ensure parts remain lubricated, and listening for unusual noises or performance changes during the off-season to catch problems early.
Here’s the thing about repair quotes: it’s easy to get talked into a replacement when a repair would’ve done the job. We’ve had plenty of customers tell us a competitor quoted a full system swap on the spot, no inspection, no explanation. At Simply Cool, we run on a single rule: if a repair will get you another few good years out of the unit, that’s what we’ll recommend, even if it costs us a bigger sale.
Practical ways to reduce your air conditioning bill
Most of the running cost sits in habits, not hardware. A few small changes can shave a genuine amount off your power bill without you noticing the difference in comfort.
- Set your thermostat between 24°C and 26°C in summer. Every degree colder than that adds roughly 5 to 10% to your running cost. Bumping it up from 20°C to 25°C can be the difference between a comfortable room and an unnecessarily expensive one.
- Use a ceiling fan alongside your air conditioner, not instead of it. A fan moves air around a room far more cheaply than a compressor does, so you can set the AC a degree or two warmer and still feel just as cool.
- Block the afternoon sun before it becomes a problem. Curtains, blinds, or external shading on west-facing windows stop a room heating up in the first place, which means your system spends less time working to cool it back down.
- Use timers and zoning instead of running everything, all day. If nobody’s in the back bedrooms, there’s no reason to be cooling them. A ducted system with zoning, or simply switching off split systems in empty rooms, adds up over a full summer.
- Don’t skip the yearly service. A dirty filter or a low refrigerant charge makes your unit work harder for the same result, which shows up as a bigger bill long before it shows up as a breakdown.
None of these changes are dramatic on their own. Together, they’re usually the difference between a power bill that surprises you and one that doesn’t.
How long should your system last before you budget for replacement?
Most home air conditioners last 10 to 15 years with regular servicing. Skip the servicing, and that number drops fast, a neglected unit works harder for longer, and the components wear out well before their time.
Age isn’t the only signal worth watching. A unit that’s struggling to keep up, running constantly without reaching the set temperature, or needing repairs more than once a season is telling you something, regardless of how old it is.
We’ve written a full breakdown of the signs that tell you an air conditioner repair won’t cut it anymore. Worth a read if you’re on the fence about whether to repair or replace.
For budgeting purposes, the practical approach is this: once a system passes the 10-year mark, start setting aside what you would have spent on a major repair toward a replacement instead. That way, whichever one you need first, you’re not caught out.
A simple way to budget for the full cost of ownership
Most people budget for the unit price and stop there. The real cost of an air conditioner is everything that happens after it’s installed, and it’s worth looking at over the system’s full working life rather than one bill at a time.
Here’s a rough 5-year picture for a standard split system, install through to a mid-life repair:
Budget unit (lower star rating)
- Purchase and install: $1,800 to $4,500
- Running costs (avg. 5 years): Higher, less efficient
- Servicing (5 years, annual): $375 to $1,000
- One mid-life repair: $200 to $1,500+
Higher star-rated unit
- Purchase and install: $2,000 to $4,500
- Running costs (avg. 5 years): Lower, can offset the extra upfront cost
- Servicing (5 years, annual): $375 to $1,000
- One mid-life repair: $200 to $1,500+
The purchase price is the smallest lever in this table. Running cost is the biggest, and it’s the one most people never actually calculate before they buy. A higher star-rated unit costing an extra $800 upfront can pay that difference back within a few years through lower running costs, then keep saving after that.
The practical takeaway: when you’re comparing quotes, don’t just compare the install price. Ask what star rating you’re getting, and factor in a service and a repair over the system’s life. That’s the number that matters to your budget, not the one on the invoice.
Air conditioning companies servicing Perth’s northern suburbs
Simply Cool Air c=Conditioning
Simply Cool runs a showroom in Joondalup where you can see and compare systems in person, including our custom-cover split systems, before you commit to anything. Lloyd and Damien have a combined 50-plus years in the trade, and our reviews consistently mention the same thing: we’ll tell you when a repair will do the job, even when a full replacement would be the easier sale. Consistently rated 5-star service and verified by Trustindex for a review score above 4.5 across the past 12 months.
An air conditioner’s real cost isn’t the number on the quote, it’s the running cost, the yearly service, and the repair you didn’t see coming. Budget for all four and nothing about summer catches you off guard.
Frequently Asked Questions
What are typical air conditioning installation costs in Australia?
Split system supply and install typically runs $1,800 to $4,500, and ducted systems $10,000 to $18,000, depending on capacity, house layout, and how many zones you need.
How much does it cost to service a split system air conditioner?
A routine split system service usually costs $75 to $200, covering a filter and coil clean, refrigerant check, and an electrical safety check.
How much does it cost to get an air conditioner serviced by a professional?
It depends on the system. Ducted services run a bit higher, $80 to $250, since there’s roof cavity ductwork and multiple zones to check on top of the standard service.
What is the typical lifespan of a home air conditioning system before replacement?
Most systems last 10 to 15 years with regular servicing. Read our full guide on maximising your air conditioner’s lifespan for what affects that number.
Is it cheaper to leave the air conditioner running all day or turn it on and off?
For most homes, it’s cheaper to leave it running at a moderate, steady temperature than to switch it off and on repeatedly, since the compressor uses the most power when it first kicks in to bring a hot room back down to temperature.
