Your air con could cost you an extra $150 this summer if you’ve ignored your energy plan

Air conditioning is one of the biggest contributors to electricity bills, responsible for up to 50% of household energy use – but how much it costs you depends a lot on the energy plan you’re on.

This is especially noticeable in summer when AC use spikes, driving up costs across the board.

We’ve crunched the numbers to show just how much you could save by switching your electricity plan without changing how much you use your air conditioner.

How much energy does my air conditioner use – and how much does it cost?

The amount of energy your AC system uses depends on its size, type and efficiency. On average, air conditioners consume between 0.65 kW and 2.15 kW per hour when running – though you can find out your specific model’s usage by looking at its Energy Rating Label, which shows the typical electricity consumption in kilowatt-hours (kWh).

To give you a general idea of what running an air conditioner might cost over summer, we looked at four common system sizes:

• Portable (2–5.5 kW)
• Small split (up to 4 kW)
• Medium split (4–6 kW)
• Large split (over 6 kW)

Source: Choice

Using average electricity prices across NSW, Victoria, Queensland, South Australia, Tasmania and the ACT, we estimated the typical cost of running an air conditioner over the hotter months. These figures assume around six hours of daily use over a 90-day summer period.

This shows how much air conditioning alone can add to your energy bill, especially if you have a larger system in your home.

You can get a more accurate estimate of the running costs of your specific unit by multiplying its energy consumption (kWh) by your electricity usage rate, which is shown on your electricity bill – but are you paying more than you should?

How much could you save on your AC this summer?

Electricity prices vary widely between energy plans, so even if two households run the same air conditioner for the same amount of time, their costs can be very different depending on the usage rate they pay.

To help you understand what running your AC over the summer could cost – and how much you could save by switching electricity plans – we analysed the running costs of each AC type using the lowest and highest electricity usage rates available in each state (excluding WA and NT), assuming six hours of daily use throughout the summer.

Here’s what we found:

Sydney, NSW

Melbourne, VIC

Brisbane, QLD

Adelaide, SA

Hobart, TAS

Canberra, ACT

Across every state, there’s a significant gap between the cheapest and most expensive usage, showing that the plan you’re on can make a noticeable difference to your summer electricity bill – even if your AC usage stays exactly the same.

In most capitals, this difference can add up to more than $100 over the summer for common AC systems, and as much as $150 in Sydney.

While the savings might be smaller in some cases, every bit counts – after all, it’s money you’re effectively losing for using the same amount of electricity.

You might feel the impact even more given the federal governments Energy Bill Relief Fund is ending which will see households foot an extra $75 on their quarterly bill.

Find a cheap electricity plan

Understanding usage rates vs supply charges on your electricity bill

The numbers we’ve shared focus on the usage rates – the price you pay for each kilowatt-hour (kWh) of electricity you use.

However, for an accurate picture of your electricity costs, you’ll also need to factor in the supply charge. This is a fixed daily fee you pay for being connected to the electricity network, regardless of how much energy you use.

Both usage rates and supply charges vary between energy providers and plans. While switching plans can help you get a better usage rate and save money on running appliances like your air conditioner, it’s important to remember that the supply charge also impacts your total bill.

In some cases, a plan with a low usage rate might have a higher supply charge – so when comparing plans, consider both parts of your bill to understand the full cost.

How else can you cut summer cooling costs?

• Choose the most energy-efficient unit

  It might cost more upfront, but a more efficient air conditioner can save you money over time through lower energy use.

• Set your thermostat to 24–26°C

  It’s tempting to blast icy air, but every degree cooler can increase your energy use by up to 10%.

• Shut doors and blinds

  Keeping sunlight out and closing off unused rooms helps your home stay cooler and reduces the work your AC has to do.

• Use fans to support cooling

  Fans use far less electricity and improve airflow, helping your AC cool your home more efficiently.

• Clean your filters regularly

  A clean filter keeps your system running efficiently, reducing energy consumption and extending the life of your AC.