What It Costs to Run Air Conditioning in Australia
Electricity prices for 2026–27, hourly and yearly cooling costs, and what an efficient split system saves, in every state and territory, in Australian dollars.
By Mark Curant·Updated
Quick answer
A typical 3.5 kW (12,000 BTU) inverter split system, which uses about 0.70 kWh of electricity an hour, costs from about A$0.18 an hour in Melbourne to A$0.29 in Adelaide, at the 2026–27 regulated usage charges. South Australia has the dearest power, but climate decides the yearly bill: one unit costs about A$665 a year in Darwin and A$12 in Hobart.
I run stores where power costs over 30¢ a kWh and the air conditioning never gets a season off, so Australia's numbers look familiar. Prices per kWh differ between states, but far less than the climate does: a split system in Darwin or Karratha works harder in a year than one in Melbourne does in a decade. These pages put a dollar figure on both sides of that.
Map: what a year of AC costs across Australia
One 3.5 kW (12,000 BTU) inverter split system (uses about 0.70 kWh of electricity an hour), run for the typical cooling hours of each city's climate, at its 2026–27 usage charge. States are shaded by their main city; each dot is a city, coloured by its own figure.
- Under A$50
- A$50–100
- A$100–200
- A$200–400
- A$400 +
- City
Tap or hover over a state or a city dot. Highest: Darwin, NT (A$665 a year). Lowest: Devonport, TAS (A$10 a year).
All 41 cities, as a table
| # | City | Cost per year, one 3.5 kW unit | Hours AC runs per year | Usage charge per kWh |
|---|---|---|---|---|
| 1 | Darwin NT | A$665 | 3,000 | 31.68¢ |
| 2 | Karratha WA | A$652 | 2,800 | 33.26¢ |
| 3 | Broome WA | A$605 | 2,600 | 33.26¢ |
| 4 | Katherine NT | A$577 | 2,600 | 31.68¢ |
| 5 | Tennant Creek NT | A$444 | 2,000 | 31.68¢ |
| 6 | Cairns QLD | A$405 | 2,000 | 28.89¢ |
| 7 | Townsville QLD | A$405 | 2,000 | 28.89¢ |
| 8 | Port Augusta SA | A$323 | 1,100 | 41.91¢ |
| 9 | Rockhampton QLD | A$303 | 1,500 | 28.89¢ |
| 10 | Alice Springs NT | A$288 | 1,300 | 31.68¢ |
| 11 | Whyalla SA | A$279 | 950 | 41.91¢ |
| 12 | Broken Hill NSW | A$245 | 1,000 | 35.01¢ |
| 13 | Kalgoorlie WA | A$233 | 1,000 | 33.26¢ |
| 14 | Dubbo NSW | A$208 | 850 | 35.01¢ |
| 15 | Murray Bridge SA | A$191 | 650 | 41.91¢ |
| 16 | Geraldton WA | A$186 | 800 | 33.26¢ |
| 17 | Mildura VIC | A$178 | 900 | 28.22¢ |
| 18 | Penrith (Western Sydney) NSW | A$177 | 750 | 33.73¢ |
| 19 | Brisbane QLD | A$176 | 900 | 27.97¢ |
| 20 | Wagga Wagga NSW | A$172 | 700 | 35.01¢ |
| 21 | Adelaide SA | A$161 | 550 | 41.91¢ |
| 22 | Gold Coast QLD | A$147 | 750 | 27.97¢ |
| 23 | Perth WA | A$140 | 600 | 33.26¢ |
| 24 | Sunshine Coast QLD | A$137 | 700 | 27.97¢ |
| 25 | Wodonga VIC | A$123 | 550 | 31.98¢ |
| 26 | Shepparton VIC | A$109 | 550 | 28.22¢ |
| 27 | Sydney NSW | A$93 | 400 | 33.14¢ |
| 28 | Newcastle NSW | A$93 | 400 | 33.14¢ |
| 29 | Bendigo VIC | A$89 | 450 | 28.22¢ |
| 30 | Bunbury WA | A$81 | 350 | 33.26¢ |
| 31 | Toowoomba QLD | A$81 | 400 | 28.89¢ |
| 32 | Canberra ACT | A$78 | 300 | 36.95¢ |
| 33 | Wollongong NSW | A$71 | 300 | 33.73¢ |
| 34 | Melbourne VIC | A$45 | 250 | 25.96¢ |
| 35 | Traralgon VIC | A$45 | 200 | 31.98¢ |
| 36 | Mount Gambier SA | A$44 | 150 | 41.91¢ |
| 37 | Geelong VIC | A$40 | 200 | 28.22¢ |
| 38 | Launceston TAS | A$23 | 120 | 27.95¢ |
| 39 | Albany WA | A$23 | 100 | 33.26¢ |
| 40 | Hobart TAS | A$12 | 60 | 27.95¢ |
| 41 | Devonport TAS | A$10 | 50 | 27.95¢ |
Prices: each state's regulated 2026–27 flat-rate usage charge on the city's network, GST included (sources on the state pages); the daily supply charge isn't included. Cooling hours: our estimate for each city's climate, for one unit in the main living area. Yearly cost is for one 3.5 kW split at a seasonal efficiency of 5.0; homes with several units or ducted systems pay more. Outlines: Natural Earth.
Cost to run AC by state and territory
What this table shows
Every cost is for one 3.5 kW wall-mounted inverter split system, the usual size for a large bedroom or small living room. 3.5 kW is how much cooling it puts out, about 12,000 BTU, or 1 ton. It is not the electricity it uses: a typical new unit uses only about 0.70 kWh of electricity for each hour it runs.
- Usage charge: the regulated flat-rate price of 1 kWh for July 1, 2026 to June 30, 2027, GST included (a range where the state has several networks). The daily supply charge isn't included, because it's paid whether the AC runs or not.
- Cost per hour: one hour of the AC running at full power in the main city, so 0.70 kWh × that city's usage charge.
- Cost per year: the cost per hour × how many hours a year the AC runs, which depends on the climate, so we show the range from the coolest to the hottest city we list (for example, Albany to Karratha in WA). A home with two or three units, or a ducted system, pays several times as much.
| State or territory | Usage charge per kWh | Same price in U.S. centsmain city | Cost per hour of ACone 3.5 kW unit, main city | Cost per year of ACcoolest to hottest city | Price set by |
|---|---|---|---|---|---|
| South Australia | 41.91¢ | 29.17¢ | A$0.29 (Adelaide) | A$44–A$323 | Default Market Offer |
| Australian Capital Territory | 36.95¢ | 25.72¢ | A$0.26 (Canberra) | A$78 | ActewAGL standing offer (Home tariff) |
| Western Australia | 33.26¢ | 23.15¢ | A$0.23 (Perth) | A$23–A$652 | Home Plan (A1) tariff |
| New South Wales | 33.14¢–35.01¢ | 23.06¢ | A$0.23 (Sydney) | A$71–A$245 | Default Market Offer |
| Northern Territory | 31.68¢ | 22.05¢ | A$0.22 (Darwin) | A$288–A$665 | Jacana Energy regulated residential tariff |
| Queensland | 27.97¢–28.89¢ | 19.47¢ | A$0.20 (Brisbane) | A$81–A$405 | Default Market Offer (south-east) and QCA notified prices (regional) |
| Tasmania | 27.95¢ | 19.46¢ | A$0.20 (Hobart) | A$10–A$23 | Aurora Energy Tariff 31 (regulated standing offer) |
| Victoria | 25.96¢–31.98¢ | 18.07¢ | A$0.18 (Melbourne) | A$40–A$178 | Victorian Default Offer |
| U.S. average | — | 18.31¢ | — | — | EIA, July 2026 |
Sorted by the usage charge in each main city. The unit is assumed to have a seasonal efficiency of 5.0: it delivers about 5 kW of cooling for every kW of electricity over a season, which is why 3.5 kW of cooling takes only about 0.70 kWh. U.S. cents use A$1 = $0.696 (October 2026).
Where AC costs the most over a year
The cities with the biggest yearly cooling bill aren't the ones with the dearest power. They're the hottest ones. Yearly cost of one 3.5 kW split at each city's usage charge and our estimate of its cooling hours:
| City | State | Hours the AC runs per year | Usage charge per kWh | Cost per year, 3.5 kW split |
|---|---|---|---|---|
| Darwin | NT | 3,000 | 31.68¢ | A$665 |
| Karratha | WA | 2,800 | 33.26¢ | A$652 |
| Broome | WA | 2,600 | 33.26¢ | A$605 |
| Katherine | NT | 2,600 | 31.68¢ | A$577 |
| Tennant Creek | NT | 2,000 | 31.68¢ | A$444 |
| Cairns | QLD | 2,000 | 28.89¢ | A$405 |
| Townsville | QLD | 2,000 | 28.89¢ | A$405 |
| Port Augusta | SA | 1,100 | 41.91¢ | A$323 |
The same effect shows between the capitals. Adelaide pays about 50% more per kWh than Brisbane, yet Brisbane's longer, humid summer means a split there costs about A$176 a year against A$161 in Adelaide.
How prices are set
In NSW, south-east Queensland and South Australia, the Australian Energy Regulator sets the Default Market Offer: a cap on standing-offer prices for each electricity network, reset every July 1. Victoria has its own Victorian Default Offer, set by the Essential Services Commission. WA, Tasmania, the ACT, the Northern Territory and regional Queensland have regulated or government-set tariffs. Many households are on market offers below these prices, so they're a ceiling and a benchmark rather than what everyone pays.
Rooftop solar changes the sums
If your panels are generating, the AC runs partly on your own power, and each of those kWh costs only the feed-in tariff you'd otherwise earn, which is far below the usage charge. That's why cooling the house in the middle of the day and letting it coast into the evening peak is the standard advice for solar homes.
Split, ducted or portable?
Most Australian homes cool with reverse-cycle split systems, which also heat efficiently in winter. Ducted systems cool the whole house from one unit but use several times the electricity of a single split, so zoning matters. A portable unit is the most expensive way to cool a room: it draws about 1 kW and its exhaust hose pulls warm air back in, while a 3.5 kW split draws about 0.70 kW for more cooling.
Frequently asked questions
Where in Australia is air conditioning most expensive to run?
Per kWh, South Australia has the highest usage charge (41.91¢ under the Default Market Offer). But yearly cost depends far more on climate: in Darwin, the Pilbara and north Queensland the AC runs for much of the year, so cooling costs the most there. One 3.5 kW split costs about A$665 a year in Darwin, against A$12 in Hobart.
How much does it cost to run a split system per hour in Australia?
A typical 3.5 kW inverter split uses about 0.70 kWh an hour, so it costs about A$0.29 in Adelaide, A$0.26 in Canberra, A$0.23 in Perth, A$0.23 in Sydney, A$0.22 in Darwin, A$0.20 in Brisbane, A$0.20 in Hobart, A$0.18 in Melbourne at each state's 2026–27 default or regulated usage charge.
How much does a portable air conditioner cost to run in Australia?
A typical portable unit draws about 1 kW, so it costs roughly the price of 1 kWh per hour: from about A$0.26 in Melbourne to A$0.42 in Adelaide. A split system gives more cooling for about half the electricity.
Is the Default Market Offer what I pay?
Not necessarily. The Default Market Offer (and the Victorian Default Offer) is a regulated reference price and the most a retailer can charge on its standing offer. Many households on market offers pay less per kWh. Use the estimator on each state page with the usage rate from your own bill.
Sources and method
- South Australia: AER, Default Market Offer 2026–27 final determination (May 2026): residential flat-rate tariff caps, SA Power Networks zone.
- Australian Capital Territory: ActewAGL, ACT Standard plan electricity prices, schedule of charges from July 1, 2026 (Home tariff), within the ICRC's regulated standing-offer price path.
- Western Australia: WA Government residential tariff from July 1, 2026, as published by Horizon Power (A2 standard residential, the same rates as Synergy's Home Plan A1).
- New South Wales: AER, Default Market Offer 2026–27 final determination (May 2026): residential flat-rate tariff caps by distribution zone.
- Northern Territory: Jacana Energy, residential pricing and tariffs, Standard Residential (flat-rate) tariff valid July 1, 2026 to June 30, 2027.
- Queensland: AER, Default Market Offer 2026–27 final determination (Energex zone); Queensland Competition Authority, notified prices for regional Queensland 2026–27, Tariff 11 (gazetted June 5, 2026, excluding GST; GST added here).
- Tasmania: Aurora Energy 2026–27 Standing Offer Tariff Schedule (Office of the Tasmanian Economic Regulator): Tariff 31 Residential Light and Power, July 1, 2026 to June 30, 2027.
- Victoria: Essential Services Commission, Victorian Default Offer 2026–27 final decision (May 20, 2026): domestic flat tariffs by distribution zone.
- Electricity used (kWh) = cooling capacity (kW) ÷ seasonal efficiency × hours; cost = kWh × usage charge. Seasonal efficiency 5.0 and cooling hours by city are our estimates.
Also see the Caribbean, Canada, Europe, Asia and every U.S. state.