Cooling or heating, business owner or home dweller, you’ve probably occasionally wondered as you reach for that AC remote or wall control: "How much is the AC costing me?"
It's a question that can get answered abruptly with a shock the moment you open your energy bill, as whether it’s summer or winter, if you’ve got AC installed, it generally gets a workout. So, is it really a choice? Is air conditioning a must have, or a cost-centre you could look at tightening?
Essential or discretionary?
The Australian climate with its long hot summers has always presented an appeal for temperature control. Whilst our Aussie ancestors might argue that an AC unit is not absolutely essential, it harnesses modern technology to make our homes and workplaces more comfortable and productive environments. From getting a better night’s sleep at home, to keeping minds and bodies alert in the workplace, the benefits of air conditioning go beyond just the immediate ones of simply feeling pleasantly cosy or comfortably cool.
Particularly, now that El Niño has been declared air conditioning offers respite from more extreme temperatures and environments. Additionally for many businesses, temperature control is now a non-negotiable part of their service. Restaurants and gyms, for example, need to provide pleasant temperatures for patrons, to name just a couple of businesses that depend on temperature-controlled environments for their bread and butter.
So, if we are better off with the benefits of air conditioning, how can we take control of its cost?
The first step is not to just suspect, but to actually KNOW what your AC is costing you. We talked to our Zembl energy experts to assemble all the data – from installation costs to running costs, residential and business – to provide a guide for calculating just how that AC is impacting your household’s or business’s bottom line.
Purchase and installation costs
$600 to $15,000 in homes
The cost of purchasing and installing home air conditioning in Australia varies widely, depending on factors such as the type of air conditioning (split or ducted), its size, and the complexity of the installation. It can be as little as $800 for a simple off-the-shelf split air conditioning unit for a single room or studio, or as much as $15,000 or more for a ducted system operating in multiple rooms in a larger home, with the average purchase and installation price sitting between $2000 and $8000.
Complex installations in multi-storey homes can be pricey due to the extended ductwork and labour involved, and these costs tend to be even higher if they’re being retro-fitted to an existing home rather than included as part of construction – or if an old system is being replaced.
Up to $20,000 for businesses
Just like with home air conditioning, the cost of purchase and installation of AC for businesses is a long piece of string, strongly impacted by the type of air conditioning, the floor area the system serves and the complexity of the installation, ranging from $600 to $20,000+.
If you’re a tiny café, you might only need one off-the-shelf split air conditioning unit, whereas larger businesses may face much higher costs, influenced by the same factors as with home air conditioning, such as whether it is ducted or split, contained or across multiple floors and areas.
Running costs
Once you’ve paid for purchase and installation, the next cost to weigh up is the cost of the energy it will take to run your system. The cost of that energy is again influenced by a number of factors, including the type of air conditioning installed, the number of square metres it serves – and of course market energy rates (which also depends on which State you’re in).
In Australia where the summers are hot and humid, we tend to depend on our AC particularly in the warmer months, especially from December to February and sometimes beyond, for cooling purposes.
The cost of cooling a home
*Figures based on 90 days (approx. 3 months of summer) with AC unit operating 5 hours per day.
The cost for businesses
Costs of keeping premises cool for businesses can be significantly higher than cooling a home – even though the actual energy rates they pay are largely the same. This is due to a number of factors, including larger building sizes, more people generating heat, and longer operating hours. The type of business also plays a role. For instance, a data centre that needs constant cooling will spend more on air conditioning than a small office building or cafe/restaurant.
While it's hard to provide an exact figure because of these variables, it's not uncommon for a business to spend thousands of dollars per month on air conditioning during the hotter months of the year. This can represent a significant portion of a company's operating expenses, and any reduction in these costs can directly improve the bottom line.
Reducing your air conditioning costs
So, how can you keep these costs under control? Here are a few tips:
- Upgrade your AC unit: If your air conditioner is more than 10 years old, it might be time for an upgrade. Newer models are generally more energy-efficient, which can lead to substantial savings over time.
- Regular maintenance: Regularly servicing your AC unit can help it run more efficiently, reducing energy use and lowering your bills.
- Smart thermostats: These devices allow you to program your air conditioning system to run less when you're not at home or during off-peak business hours.
- Energy-efficient practices: Simple actions like closing blinds to block out the sun or using fans to circulate air can reduce your reliance on air conditioning.
How Zembl can help
At Zembl, we understand that managing energy costs is a complex task, especially for businesses. That's why we offer an energy comparison service that helps businesses save time and money on their energy bills. With over 13 years of experience in this field, we are well-equipped to help you navigate these challenges and improve your bottom line.
While air conditioning is a necessary expense for many homeowners and businesses, understanding its cost and how to manage it effectively can make a significant difference to your energy bills. Remember, every dollar saved on energy costs is a dollar added to your bottom line.
How cool is that?
The estimates in this article are general, and the actual cost can vary depending on specific circumstances. It's always best to get multiple quotes and do thorough research to ensure you're getting the best deal for your needs.
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