With forecasts warning of a hotter-than-usual summer ahead, new research from Compare the Market reveals that nearly 6 in 10 Australians (59.4%) plan to cut back on air conditioning or raise the thermostat to curb electricity costs.*
A total of 47.8% of those surveyed said they planned on using the air-con less, while 11.6% said they would use their air-con the same but increase the temperature.
But the size, cooling capacity, energy star rating and type of air conditioner you use can also make a sizable difference in what you ultimately pay, with new analysis showing the difference in running costs between units can be hundreds of dollars.
Compare the Market’s Head of Energy, Meredith O’Brien, said that while portable air conditioners typically come with a lower upfront cost, they tend to be some of the biggest energy guzzlers.
“Portable air conditioning units may cost less upfront, but they chew through a lot more power, which could cost you more in the long run,” Ms O’Brien said.
“Our analysis shows that a portable unit with a similar cooling capacity as a small reverse cycle unit is around 85% more expensive to run. Depending on your location, energy retailer, plan and tariff type, that could add more than $150 to your summer energy bill.
“A portable unit with greater cooling capacity is going to cost even more to run and could add hundreds to your summer bill.”
| Portable air conditioner type | Cooling capacity | Estimated running cost over summer |
| Olimpia Splendid 2.6kW Portable Air Conditioner | 2600 Watts (2.6 KW) | $331.24 |
| DeLonghi 3.3kW Portable Air Conditioner | 3300 Watts (3.3 KW) | $420.42 |
| Rinnai C4.1kW Cooling Only Portable Air Conditioner
| 4100 Watts (4.1 KW) | $522.34 |
| Olimpia Splendid 5.2kW Portable Air Conditioner | 5200 Watts (5.2 KW) | $662.48 |
Based on a home in Brisbane (4000) with a flat electricity usage of 35c/kWh. Actual costs may vary based on the size of your room, how often you use your air conditioner, the temperature you set your air conditioner and how many air conditioners you use. Calculations made using SA Government’s Electrical appliance running cost calculator, assuming an air conditioner runs for four hours a day over a quarter. Accurate as of 09/9/2025
But it’s not all bad news, if you shop around. Compare the Market identified several more cost-effective models.
“Generally speaking, reverse split systems are more energy-efficient than other types of units and in turn, cheaper to run,” Ms O’Brien explained.
“Even compared to window box units, our analysis shows that reverse cycle systems tend to be more cost-effective. You could run a medium-sized reverse split system with a higher cooling capacity and better energy star rating than a window box and still pay less on your summer energy bill.
“But beware of ducted systems. While they typically have a greater cooling capacity than other units, they usually cost a lot more to operate than a reverse split system.”
| Air conditioner type | Cooling capacity | Brand/model number | Energy star rating | Estimated Summer running cost |
| Reverse split (small unit) | 2.5 kW | Panasonic C2.5kW H3.2kW Reverse Cycle Split System and Air Purifier | 4.5 | $178.85 |
| Reverse split (medium unit) | 4.5 kW | FUJITSU AOTG18KMTC/ASTG18KMTC | 4.5 | $369.60 |
| Reverse split (large unit) | 9.5 kW | Panasonic C9.5kW H10.3kW Reverse Cycle Split System and Air Purifier
| 3.5 | $867.30 |
| Ducted | 12.5 kW | SAMSUNG AC120TNHPKG/SA / AC120TXAPKG/SA 12.5kW Ducted S2+ Inverter Air Conditioner System 1 Phase
| 3 | $1,233.75 |
| Window Box | 2.6 kW | Dimplex C4.1kW H3.6kW Reverse Window Box Air Con | 2 | $527.10 |
Based on a home in Brisbane (4000) with a flat electricity usage of 35c/kWh. Actual costs may vary based on the size of your room, how often you use your air conditioner, the temperature you set your air conditioner and how many air conditioners you use. Calculations made using The Australian Government’s Energy Rating Calculator, which automatically assumes air conditioning usage for summer. Accurate as of 09/9/2025
Other factors to consider when running an air conditioner:
What’s the space you’re looking to cool? Before buying an air conditioner, know the exact length, width and ceiling height of the room you want to cool. This will help ensure you find a unit powerful enough to cool the space effectively.
Is your home adequately insulated? Good insulation in your ceiling, walls, and floors can improve your system’s efficiency.
Can you make use of solar? If your home has solar panels, running your air conditioner during daylight hours can reduce your electricity costs. With a solar battery, you can store excess power for nighttime use, allowing you to cool your home efficiently after dark.
Are you on a competitive energy plan? If it’s been a while since your last switch, you could be paying more than you need to for your energy supply. Use comparison services like Compare the Market to look for a better deal.
*Survey of 1,016 Australian adults, conducted in September 2025.
For more information, please contact:
Phillip Portman | 0437 384 471 | [email protected]
Compare the Market is a comparison service that takes the hard work out of shopping around. We make it Simples for Australians to quickly and easily compare and buy insurance, energy, and home loans products from a range of providers. Our easy-to-use comparison tool helps you look for a range of products that may suit your needs and benefit your back pocket.
