What is your air con costing you?

What is your air con temperature setting costing you?

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In this article Canstar Blue looks at the ideal air conditioner temperatures for your home, as well as how much your air-con use could be adding to your electricity bill.

What temperature does your air conditioner usually run on and how much is that costing you? Can small changes to your air conditioning habits actually save you money? 

Canstar Blue investigates below.


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Here are some sponsored deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Ausgrid energy network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3900kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Here are some sponsored deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Citipower network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Here are some sponsored deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from our referral partners†. These costs are based on the Energex network in Brisbane but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4600kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Here are some sponsored deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from our referral partners†. These costs are based on the SA Power network in Adelaide but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area and to see other products in our database that may be available. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

What is the best temperature for your air conditioner?

Depending on your state and region, a standard air conditioner’s temperature should be set somewhere between 22–24 degrees for cooling in summer, and 19–21 degrees for heating in winter. Fujitsu, a leading air conditioning manufacturer, claims that this ensures maximum energy efficiency from your unit. 

According to the Department of Climate Change, Energy, the Environment and Water every extra degree of cooling will increase energy consumption by 5–10%. So as a guide, Daikin recommends setting your air conditioner in summer to eight degrees below the outdoor temperature.

Note: If you are unsure of how to set the air conditioner’s temperature for heating and other functions, Canstar Blue has you covered here.

How do temperature settings affect air conditioner costs?

Energy bills can increase when air conditioner cooling temperatures are set lower during summer and heating temperatures are higher in winter. The harder the air conditioner has to work, the more electricity it will consume and the more fees are added to your energy bill.

It is difficult to pinpoint how much air conditioner temperature settings contribute to electricity usage costs. However, Ergon Energy estimates that every one degree cooler in summer adds around 10% to the amount of electricity that the air conditioner uses. Using the Ergon air con cost calculator, you can see how small changes to the cooling temperature can make a considerable difference to the cost of using an air conditioner.

Annual cost of air con cooling temperature settings (Four hours per day, 13 weeks per year)

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Cooling capacity 21° 22° 23° 24°
2.5kW $65.99 $60.37 $53.35 $49.14
3.5kW $110.36 $100.96 $89.22 $82.18
5.0kW $171.79 $157.17 $138.89 $127.93
6.0kW $211.61 $193.60 $171.09 $157.58
7.1kW $248.01 $226.91 $200.52 $184.69
8.0kW $282.15 $258.13 $228.12 $210.11
10kW $369.75 $338.28 $298.94 $275.34
14kW $568.84 $520.43 $459.91 $423.60

Source: www.canstarblue.com.au – 29/05/2024. Based on Ergon Energy Air Conditioning Calculator. Assumes 33.25c/kWh electricity usage rate (Tariff 11 – Ergon Energy network) with air conditioner running four hours a day for 13 weeks of the year. General guide only. 

What is the right-sized air conditioner for your home?

According to the Good Guys, an estimated 1.25–1.7 kilowatts of power per 10 sqm is needed to cool a house in Australia with standard-height ceilings. The higher the ceiling, the more powerful the air conditioner unit needs to be.

If a room is larger than the air conditioner was designed for, the unit will be less effective at controlling the temperature. Air conditioner remotes might be set to cool to 24 degrees but room temperature might actually be 28 degrees. If your room is too small for the air conditioner, it will cool the room quickly then shut off. An air conditioner that turns on and off can use more energy and cause a larger bill.

If you’re unsure of what your home needs, speak with an air conditioner professional.

Below is an approximate guide to ideal air conditioner capacities given the room size.

Room Size m2 Cooling capacity (C) / Heating Capacity (H)
9m2 2.5kW(C)/3.2kW(H)
25m2 3.5kW(C)/3.7KW – 4.3kW (H)
30m2 3.5kW(C)/3.7KW(H) – 5.0kW(C)/6.0kW(H)
40m2 5.0kW(C)/6.0kW(H) – 6.0kW(C)/7.2kW(H)
45m2 6.0kW(C)/7.2kW(H) – 7.1kW(C)/8.0kW(H)
50m2 7.1kW(C)/8.0kW(H) – 8.0kW(C)/9.0kW(H)
55m2 8.0kW(C)/9.0kW(H) – 9.2kW(C)/10.0kW(H)

Source: Air Conditioner Buying Guide, Harvey Norman. General guide only.

Also keep in mind the ceiling height of the area you’re looking to heat/cool. The higher the ceiling, the more powerful of an air conditioner you will need. If you’re unsure about what size air conditioner you need, seek a professional quote.

Compare cheap electricity deals

As the seasons change, it’s a good idea to assess your current energy plan and review the rates you pay. Paying less for electricity can help minimise air conditioner running costs.

Canstar Blue has made it easier to compare providers by listing some of the cheapest deals in each state below.

Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Ausgrid network in Sydney but prices may vary depending on your circumstances. This comparison assumes general energy usage of 3900kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Citipower network in Melbourne but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the Energex network in Brisbane but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4600kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Here are some of the cheapest published deals from the retailers on our database that include a link to the retailer’s website for further details. These are products from referral partners†. These costs are based on the SA Power network in Adelaide but prices may vary depending on your circumstances. This comparison assumes general energy usage of 4000kWh/year for a residential customer on a single rate tariff. Please use our comparison tool for a specific comparison in your area. Our database may not cover all deals in your area. As always, check all details of any plan directly with the retailer before making a purchase decision.

Other ways to save on energy costs

  • Sealing and insulation: If the space you’re trying to heat or cool is poorly sealed or insulated, your air conditioner will have to work harder to reach the temperature you have set (i.e. if you’re trying to cool your home down to 24, you may have to set your air conditioner’s temperature to 20).
  • Energy efficiency: An air conditioner will have a label with two separate star ratings. The blue star rating shows the air conditioner’s cooling efficiency rating, while the orange one shows heating efficiency.
  • Alternatives to air conditioning: Ceiling fans, tower fans and pedestal fans have considerably lower running costs than air conditioners. Also consider if solar air conditioning could be right for you.

For more ideas on cooling your house down while avoiding high electricity costs, check out Canstar Blue’s 10 tips to cool a house down without air conditioning.

Image Credit: Yuri Hoyda/Shutterstock

Katrina Hasdell
Energy Content Producer
Katrina Hasdell is an Energy Content Producer at Canstar Blue, where she covers Australia’s retail energy market. Katrina is dedicated to providing consumers with easy-to-read information on their energy options so they can get better deals on electricity, solar power and more.

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