How Much Does It Cost to Run Air Conditioning in New South Wales?
Hourly, monthly and yearly cooling costs at NSW's 2026–27 electricity prices, by city, unit size and efficiency, in Australian dollars.
By Mark Curant·Updated
Quick answer
At the Default Market Offer usage charge of 33.14¢ per kWh (Ausgrid network, which covers Sydney), a typical 3.5 kW (12,000 BTU) inverter split system, which uses about 0.70 kWh of electricity an hour, costs about A$0.23 an hour to run, or A$56 for a month at 8 hours a day. Over a year it comes to about A$93 in Sydney, and from A$71 in Wollongong to A$245 in Broken Hill. In U.S. terms the price is about 23.06¢/kWh, 26% more than the U.S. average.
Per hour
A$0.23
3.5 kW (12,000 BTU) split, uses 0.70 kWh
Per month
A$56
8 hrs/day × 30 days
Per year, Sydney
A$93
400 cooling hours (our estimate)
Your numbers in New South Wales
Your AC now (efficiency 3.0)
A$155/yr
A$0.39/hr
New unit (efficiency 5.0)
A$93/yr
A$0.23/hr
You would save
A$62/yr
A$742 over 12 years
Efficiency = kW of cooling per kW of electricity over a season (our assumption for a typical new split is 5.0). Hours start at our estimate for Sydney and the price at the Ausgrid usage charge; change them for your home and your bill.
Yearly cost by city
How long the AC runs matters as much as the price of power, and that varies hugely across New South Wales. This table is for one 3.5 kW (12,000 BTU, about 1 ton) inverter split system, which uses about 0.70 kWh of electricity for each hour it runs. Hours per year is our estimate of how long it runs at full power in each city's climate. Cost per year is those hours × 0.70 kWh × the usage charge on that city's network.
| City | Network | Usage charge per kWh | Hours the AC runs per year | Cost per year, 3.5 kW split | Cost per year, portable unit (same hours) |
|---|---|---|---|---|---|
| Broken Hill | Essential Energy | 35.01¢ | 1,000 | A$245 | A$350 |
| Dubbo | Essential Energy | 35.01¢ | 850 | A$208 | A$298 |
| Penrith (Western Sydney) | Endeavour Energy | 33.73¢ | 750 | A$177 | A$253 |
| Wagga Wagga | Essential Energy | 35.01¢ | 700 | A$172 | A$245 |
| Sydney | Ausgrid | 33.14¢ | 400 | A$93 | A$133 |
| Newcastle | Ausgrid | 33.14¢ | 400 | A$93 | A$133 |
| Wollongong | Endeavour Energy | 33.73¢ | 300 | A$71 | A$101 |
Cooling hours are our estimate of full-load hours for each city's climate, for one unit in the main living area. A home cooling several rooms, or with a ducted system, uses more. The portable column assumes a typical unit drawing about 1 kW.
Prices by network
What this table shows
- Usage charge: what each kWh costs on the flat (single-rate) tariff under the Default Market Offer, July 1, 2026 to June 30, 2027, GST included. This is what running the air conditioner adds to the bill.
- Daily supply charge: a fixed amount for every day of the bill, whether the AC runs or not, so it isn't part of the running costs on this page.
- Cost per hour: one 3.5 kW (12,000 BTU) split running for an hour at full power (0.70 kWh × the usage charge).
| Network | Area covered | Usage charge per kWh | Daily supply charge | Cost per hour of ACone 3.5 kW split |
|---|---|---|---|---|
| Ausgrid | Sydney's east, north and inner west, Newcastle, the Central Coast and the Hunter | 33.14¢ | A$1.66 a day | A$0.23 |
| Endeavour Energy | Western Sydney, the Blue Mountains, the Southern Highlands and the Illawarra | 33.73¢ | A$1.85 a day | A$0.24 |
| Essential Energy | most of regional and rural NSW | 35.01¢ | A$2.72 a day | A$0.25 |
Cost by unit size
Split systems in Australia are sold by how much cooling they put out, in kW (the BTU size is in brackets). A bigger unit cools a bigger space but uses more electricity. All at a seasonal efficiency of 5.0 (our assumption for a typical new inverter split) and 33.14¢/kWh:
| Unit size (cooling output) | Typical use | Cost per hour of running | Cost per month (8 hours a day) | Cost per year in Sydney (400 hours) |
|---|---|---|---|---|
| 2.5 kW (9,000 BTU) | bedroom or study | A$0.17 | A$40 | A$66 |
| 3.5 kW (12,000 BTU) | large bedroom or small living room | A$0.23 | A$56 | A$93 |
| 5 kW (18,000 BTU) | living room | A$0.33 | A$80 | A$133 |
| 7.1 kW (24,000 BTU) | large or open-plan living area | A$0.47 | A$113 | A$188 |
| 14 kW ducted | whole home | A$1.33 | A$318 | A$530 |
| Portable | one room, no installation | A$0.33 | A$80 | A$133 |
The ducted row assumes the whole system runs at full power for the same hours, at an efficiency of 3.5 (ducts lose some cooling). Zoning, or closing off unused rooms, cuts that cost a lot.
What a more efficient unit saves
Seasonal efficiency is how much cooling a unit delivers for each kW of electricity over a whole season. The higher it is, the less electricity it needs for the same cooling. Yearly cost of one 3.5 kW (12,000 BTU) unit in Sydney (400 hours a year):
| Seasonal efficiency | What it's like | Electricity per hour | Cost per year | Saved per year vs an old 3.0 unit |
|---|---|---|---|---|
| 3.0 | old fixed-speed unit (pre-2010s) | 1.17 kWh | A$155 | — |
| 4.0 | older or basic inverter unit | 0.88 kWh | A$116 | A$39 |
| 5.0 | typical new inverter split | 0.70 kWh | A$93 | A$62 |
| 6.0 | efficient model | 0.58 kWh | A$77 | A$77 |
| 7.0 | top models | 0.50 kWh | A$66 | A$88 |
Use the zoned energy rating label
Australian air conditioners carry a zoned energy rating label with separate star ratings, and an estimated yearly energy use, for the hot, average and cold climate zones shown on its map. To compare models, look at the cooling and heating figures for your zone: yearly kWh × 33.14¢ is a quick estimate of that model's running cost.
What to know about electricity prices in New South Wales
The Default Market Offer is a price cap set by the Australian Energy Regulator. It is the most a retailer can charge households on its standing offer, and the reference price every market offer has to be compared against. Most households are on a market offer, and many of those are cheaper than the cap, so check your bill for your own usage rate.
Western Sydney is the place where this matters most: it's hotter than the coast and on a slightly dearer network, so a home in Penrith can run its air conditioner nearly twice as many hours as one in the eastern suburbs.
Many NSW homes with a smart meter are on time-of-use pricing, where afternoon and early-evening kilowatt-hours cost more than the flat rate shown here. Pre-cooling the house in the middle of the day, especially with rooftop solar, moves AC use out of the peak.
Cutting the cost
- Set the thermostat to 25–26°C rather than 21°C, and run a ceiling fan with it.
- Close blinds and curtains on sunny windows before the heat builds, especially west-facing ones.
- With rooftop solar, cool the house in the middle of the day and let it coast into the evening peak.
- Cool the rooms you're using, with doors closed, rather than the whole house.
- Clean the indoor unit's filters every few weeks in summer.
- Compare your plan with the default offer: a cheaper market offer saves on every kWh.
How New South Wales compares
SA
41.91¢/kWh
Adelaide · ≈ 29.17¢ US
ACT
36.95¢/kWh
Canberra · ≈ 25.72¢ US
WA
33.26¢/kWh
Perth · ≈ 23.15¢ US
NT
31.68¢/kWh
Darwin · ≈ 22.05¢ US
QLD
27.97¢/kWh
Brisbane · ≈ 19.47¢ US
TAS
27.95¢/kWh
Hobart · ≈ 19.46¢ US
VIC
25.96¢/kWh
Melbourne · ≈ 18.07¢ US
New South Wales (Sydney): ≈ 23.06¢ US/kWh. U.S. average: 18.31¢/kWh (July 2026). See costs in every U.S. state.
Frequently asked questions
How much does it cost to run air conditioning per hour in New South Wales?
About A$0.23 an hour in Sydney for a typical 3.5 kW (12,000 BTU) inverter split system, which uses about 0.70 kWh of electricity an hour, at the 33.14¢/kWh usage charge. A 7.1 kW unit for a large living area costs about A$0.47 an hour, a 14 kW ducted system about A$1.33, and a portable air conditioner about A$0.33.
How much does air conditioning add to a quarterly bill in New South Wales?
Running a 3.5 kW split 8 hours a day uses about 510 kWh over a 91-day quarter, or about A$169 at 33.14¢/kWh. Over a whole year in Sydney, at our estimate of 400 cooling hours, it comes to about A$93. The daily supply charge is on the bill whether the AC runs or not.
Is a reverse-cycle split cheaper to run than a portable air conditioner?
Yes, by a wide margin. A portable unit draws about 1 kW and cools less well, partly because its exhaust hose pulls warm outside air back into the room. A 3.5 kW split at a seasonal efficiency of 5.0 draws about 0.70 kW on average while putting out more cooling than a typical portable (about 2.6 kW), so for the same amount of cooling it uses about half the electricity.
How we calculated this
Electricity used (kWh) = cooling capacity (kW) ÷ seasonal efficiency × hours. Cost = kWh × usage charge. Prices: AER, Default Market Offer 2026–27 final determination (May 2026): residential flat-rate tariff caps by distribution zone. U.S. cents use A$1 = $0.696 (October 2026). Cooling hours are our estimate for each city. To check your own price, look for the usage (or "peak"/"anytime") rate per kWh on your bill.