As the summer heat rolls across the country, Aussies cranking the air con are being encouraged to turn the temperature up, even just one degree, to help keep their energy bills down.
Research from Canstar Blue shows 31% of Aussies believe that air conditioning has the biggest impact on their power bills, while 25% will be restricting the use of their air-con in a bid to combat the rising cost of living.
How much does it cost to run an air conditioner?
The cost to run an air conditioner in a home depends on the size of the room, or rooms, being cooled or heated, the location of the home and its climate, and of course, the temperature the air con is set to.
Every extra degree of cooling increases energy consumption by 5% – 10%, so the lower the temperature, the more energy you’ll use and the more you’ll have to pay.
While it’s tempting to keep the temperature low, a standard air conditioner should be set somewhere between 22–24 degrees for cooling during the summer. This is because the closer it is to the outside temperature, the less your bill will climb.
| Estimated cost of running aircon (10 hours per day, 4 weeks) | ||||||||
| Cooling capacity | Difference in degree to outdoor temperature | |||||||
| 8° | 7° | 6° | 5° | 4° | 3° | 2° | 1° | |
| 2.5kW | $68.56 | $63.19 | $58.24 | $53.67 | $49.47 | $45.59 | $42.02 | $38.73 |
| 3.5kW | $114.65 | $105.67 | $97.39 | $89.76 | $82.73 | $76.25 | $70.28 | $64.77 |
| 5.0kW | $178.48 | $164.50 | $151.61 | $139.74 | $128.79 | $118.70 | $109.40 | $100.83 |
| 6.0kW | $219.85 | $202.63 | $186.75 | $172.12 | $158.64 | $146.21 | $134.76 | $124.20 |
| 7.1kW | $257.68 | $237.49 | $218.89 | $201.74 | $185.93 | $171.37 | $157.94 | $145.57 |
| 8.0kW | $293.14 | $270.17 | $249.01 | $229.50 | $211.52 | $194.95 | $179.68 | $165.60 |
| 10kW | $384.16 | $354.06 | $326.32 | $300.76 | $277.20 | $255.48 | $235.47 | $217.02 |
| 14kW | $591.02 | $544.71 | $502.04 | $462.71 | $426.46 | $393.05 | $362.26 | $333.88 |
| Source: CanstarBlue.com.au. Assumes 34.069c/kWh electricity usage rate (Tariff 11 – Ergon Energy network) and calculated using Ergon Energy Air Conditioning Calculator. | ||||||||
Compare cheap plans
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.
When do Aussies use the most energy?
Data from the Australian Energy Market Operator (AEMO), which tracks energy demand from grid scale generation, shows that in 2024, late January and early February had the highest energy demand for two of the country’s states, Queensland and New South Wales.
Queensland hit the highest total demand for the year on January 22, 2024, while New South Wales had its third highest day in terms of total demand on January 20, with February 5, 2024 proving the biggest.
However, cooler states like Victoria had much higher demand for energy during the winter months instead.
| Top five days for total energy demand in 2024 | |||||
| QLD | NSW | VIC | |||
| Date | Total | Date | Total | Date | Total |
| Jan 22 | 2,363,798 | 5 Feb | 2,848,946 | 4 Jul | 1,885,982 |
| Jan 29 | 2,336,783 | 29 Feb | 2,830,784 | 15 Jul | 1,878,379 |
| Feb 6 | 2,253,557 | 20 Jun | 2,740,038 | 13 Jun | 1,862,818 |
| Jan 30 | 2,231,056 | 16 Jul | 2,727,511 | 20 Jun | 1,856,529 |
| Jan 27 | 2,229,055 | 2 Jul | 2,688,354 | 19 Jul | 1,855,755 |
| Source: aemo.com.au historical aggregated price and demand data. | |||||
While this year’s temperatures are likely to see demand follow a similar pattern, research from Canstar Blue shows that keeping the air con temperature up, not down, will keep energy bills from climbing.
How do Aussies like to use their air con?
According to our research, more than half of households with air conditioners have a split system air conditioning unit, while central/ducted air cons make up just over 20% of homes with the appliances installed.
Just over two fifths of households will make sure any unused rooms are closed off when the air con is on to maximise their air con’s energy use, while just 21% have their air conditioners serviced regularly – something that could significantly impact the efficiency of an air con unit.
Finally, 11% of Aussies with air con admit they’ve kept it running through the day just to keep their pets comfortable.
Switch your energy provider and save
Energy prices can and do change regularly, so unless your household is on a fixed rate plan, there’s every chance you’re paying more than you first agreed to when signing up to their energy provider.
Switching energy providers comes at little to no extra cost, but could help households save hundreds of dollars, while still allowing them to keep cool over summer.
Canstar Blue research shows that of those households that switched energy providers, 62% agreed it was a good financial decision and helped them save.
| Average vs Cheapest Electricity Plan Prices | ||||
| State | Distributor | Average Annual Cost | Lowest Annual Cost | Estimated Annual Savings |
| NSW | Ausgrid | $1,681 | $1,399 | $282 |
| Endeavour Energy | $2,039 | $1,668 | $371 | |
| Essential Energy | $2,361 | $1,867 | $494 | |
| VIC | Ausnet Services | $1,802 | $1,301 | $501 |
| Citipower | $1,382 | $1,029 | $353 | |
| Jemena | $1,537 | $1,117 | $420 | |
| Powercor | $1,611 | $1,168 | $443 | |
| United Energy | $1,464 | $1,077 | $387 | |
| QLD | Energex | $1,931 | $1,571 | $360 |
| SA | SA Power Networks | $2,192 | $1,738 | $454 |
| ACT | Evoenergy | $2,147 | $1,657 | $490 |
| TAS | Tasnetworks | $1,289 | $1,247 | $42 |
| Source: www.canstarblue.com.au – 2/07/2024. Based on single-rate electricity plans on Canstar Blue’s database; excluding solar-only plans. Average annual costs calculated based on the estimated lowest possible price a representative customer would be charged in a year, assuming all conditions of discount offered (if any) have been met. Representative customer based on the reference usage for NSW, VIC, QLD and SA (per Victorian Default Offer for VIC, ICRC for ACT and AER for others) or the median usage in the Office of the Tasmanian Regulator’s report, Typical Electricity Customers in Tasmania 2022 for TAS. Lowest annual costs based on lowest-priced single-rate electricity plan on Canstar Blue’s database, assuming all conditions of discount offered (if any) have been met. | ||||
Original reporting by Eden Radford
Image Source: Shutterstock.com
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