How Much Does It Cost to Run Air Conditioning in Victoria?
Hourly, monthly and yearly cooling costs at VIC's 2026–27 electricity prices, by city, unit size and efficiency, in Australian dollars.
By Mark Curant·Updated
Quick answer
At the Victorian Default Offer usage charge of 25.96¢ per kWh (CitiPower network, which covers Melbourne), a typical 3.5 kW (12,000 BTU) inverter split system, which uses about 0.70 kWh of electricity an hour, costs about A$0.18 an hour to run, or A$44 for a month at 8 hours a day. Over a year it comes to about A$45 in Melbourne, and from A$45 in Traralgon to A$178 in Mildura. In U.S. terms the price is about 18.07¢/kWh, about the same as the U.S. average.
Per hour
A$0.18
3.5 kW (12,000 BTU) split, uses 0.70 kWh
Per month
A$44
8 hrs/day × 30 days
Per year, Melbourne
A$45
250 cooling hours (our estimate)
Your numbers in Victoria
Your AC now (efficiency 3.0)
A$76/yr
A$0.30/hr
New unit (efficiency 5.0)
A$45/yr
A$0.18/hr
You would save
A$30/yr
A$363 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 Melbourne and the price at the CitiPower 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 Victoria. 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) |
|---|---|---|---|---|---|
| Mildura | Powercor | 28.22¢ | 900 | A$178 | A$254 |
| Shepparton | Powercor | 28.22¢ | 550 | A$109 | A$155 |
| Wodonga | AusNet Services | 31.98¢ | 550 | A$123 | A$176 |
| Bendigo | Powercor | 28.22¢ | 450 | A$89 | A$127 |
| Melbourne | CitiPower | 25.96¢ | 250 | A$45 | A$65 |
| Geelong | Powercor | 28.22¢ | 200 | A$40 | A$56 |
| Traralgon | AusNet Services | 31.98¢ | 200 | A$45 | A$64 |
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 Victorian Default 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 |
|---|---|---|---|---|
| CitiPower | Melbourne's CBD and inner suburbs | 25.96¢ | A$1.21 a day | A$0.18 |
| United Energy | Melbourne's south-east and the Mornington Peninsula | 27.35¢ | A$1.19 a day | A$0.19 |
| Jemena | Melbourne's north and north-west | 27.47¢ | A$1.27 a day | A$0.19 |
| Powercor | Melbourne's west and western and central Victoria | 28.22¢ | A$1.38 a day | A$0.20 |
| AusNet Services | Melbourne's outer east and eastern and north-eastern Victoria | 31.98¢ | A$1.28 a day | A$0.22 |
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 25.96¢/kWh:
| Unit size (cooling output) | Typical use | Cost per hour of running | Cost per month (8 hours a day) | Cost per year in Melbourne (250 hours) |
|---|---|---|---|---|
| 2.5 kW (9,000 BTU) | bedroom or study | A$0.13 | A$31 | A$32 |
| 3.5 kW (12,000 BTU) | large bedroom or small living room | A$0.18 | A$44 | A$45 |
| 5 kW (18,000 BTU) | living room | A$0.26 | A$62 | A$65 |
| 7.1 kW (24,000 BTU) | large or open-plan living area | A$0.37 | A$88 | A$92 |
| 14 kW ducted | whole home | A$1.04 | A$249 | A$260 |
| Portable | one room, no installation | A$0.26 | A$62 | A$65 |
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 Melbourne (250 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$76 | — |
| 4.0 | older or basic inverter unit | 0.88 kWh | A$57 | A$19 |
| 5.0 | typical new inverter split | 0.70 kWh | A$45 | A$30 |
| 6.0 | efficient model | 0.58 kWh | A$38 | A$38 |
| 7.0 | top models | 0.50 kWh | A$32 | A$43 |
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 × 25.96¢ is a quick estimate of that model's running cost, and here the heating figure usually matters more.
What to know about electricity prices in Victoria
The Victorian Default Offer is set each year by the Essential Services Commission. It's the price retailers charge households who haven't chosen a plan, and a benchmark every other offer is compared with. Inner Melbourne's flat rate is the lowest of any network in this guide, but Victorian prices differ by network: the same kilowatt-hour costs about 23% more in AusNet's area than in inner Melbourne.
Melbourne's summers swing between mild weeks and short, very hot spells, so most homes run cooling far fewer hours than in Sydney or Brisbane. Northern Victoria is a different climate: Mildura has hot, dry summers closer to inland NSW.
If you're on a time-of-use or flexible plan, the peak price applies in the late afternoon and evening, which is exactly when a hot day's cooling load is highest. Closing blinds early and pre-cooling the house helps.
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 Victoria 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
NSW
33.14¢/kWh
Sydney · ≈ 23.06¢ 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
Victoria (Melbourne): ≈ 18.07¢ 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 Victoria?
About A$0.18 an hour in Melbourne for a typical 3.5 kW (12,000 BTU) inverter split system, which uses about 0.70 kWh of electricity an hour, at the 25.96¢/kWh usage charge. A 7.1 kW unit for a large living area costs about A$0.37 an hour, a 14 kW ducted system about A$1.04, and a portable air conditioner about A$0.26.
How much does air conditioning add to a quarterly bill in Victoria?
Running a 3.5 kW split 8 hours a day uses about 510 kWh over a 91-day quarter, or about A$132 at 25.96¢/kWh. Over a whole year in Melbourne, at our estimate of 250 cooling hours, it comes to about A$45. 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: Essential Services Commission, Victorian Default Offer 2026–27 final decision (May 20, 2026): domestic flat tariffs 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.