10 Energy Saving Tips For Using Air Conditioner
Major Benefits
If your electricity bill spikes every summer and you find yourself wondering where all that money is going, your air conditioner is almost certainly the biggest culprit. Heating and cooling accounts for roughly 20% to 50% of energy use in the average Australian home, where summers regularly push past 35°C and winters can be bitterly cold; that figure can climb even higher.
The good news is that you do not need to choose between staying comfortable and keeping your bills manageable. Small, deliberate changes to how you use, maintain and set up your air conditioner can make a significant difference to how much electricity it actually consumes. And for homeowners who have not yet upgraded to a modern, energy-efficient system, the savings potential is even greater.
This guide walks you through 10 energy-saving tips specifically for Victorian homeowners.Let us get into it.
Table of Contents
- Why Air Conditioners Can Increase Your Energy Bills So Quickly
- Tip 1: Upgrade to an Energy-Efficient Reverse-Cycle Air Conditioner
- Tip 2: Set Your Air Conditioner Between 23°C and 26°C
- Tip 3: Use Eco Mode, Energy Saver Mode and Timer Settings
- Tip 4: Only Cool the Rooms You Are Actually Using
- Tip 5: Keep Heat Out Before Turning the Air Conditioner On
- Tip 6: Seal Gaps and Stop Cool Air Escaping
- Tip 7: Clean Your Air Conditioner Filters Regularly
- Tip 8: Use Ceiling Fans Together With Your Air Conditioner
- Tip 9: Improve Insulation in Your Home
- Tip 10: Avoid These Common Air Conditioner Habits That Waste Electricity
- Final Thoughts
- Frequently Asked Questions
Before we jump to the tips, it helps to understand why air conditioners are such heavy electricity users in the first place.
Several factors drive up your air conditioner's energy consumption beyond what most people realise:
Incorrect temperature settings
Every degree you cool below 24°C adds approximately 5 to 10% to your running costs. A household that habitually sets their thermostat to 18°C instead of 24°C could be paying up to 60% more than necessary for the same hours of operation.
An ageing or inefficient system
Air conditioners lose efficiency over time. Older non-inverter models are particularly costly to run because they cycle on and off to maintain temperature rather than modulating their output smoothly like modern inverter units do.
A poorly sealed or insulated home
Your air conditioner has to work twice as hard if the cool air you are generating keeps escaping through gaps, uninsulated ceilings or uncovered windows.
Running the wrong size unit
A system that is too small for your space runs constantly at full capacity trying to keep up. A system that is too large cycles too frequently and never operates at peak efficiency. Both situations cost you more than they should.
Understanding these root causes is what separates homeowners who save money from those who keep paying unnecessary bills year after year. Now let us look at exactly what you can do about each of them.
If your air conditioner is more than ten years old, no amount of tweaking settings or cleaning filters will get you the savings that come from simply replacing it with a modern, high-efficiency unit. This is the single biggest energy-saving move available to most Victorian homeowners and it is often far more affordable than people expect, especially with air conditioner rebate Victoria
The Difference Between Old and New Systems
Older non-inverter air conditioners operate in a simple on-off cycle. They run at full power until the room reaches the target temperature, switch off and then switch back on when the temperature drifts again. This cycling is inherently inefficient and it is hard on the motor over time.
Modern inverter technology works differently. An inverter air conditioner continuously adjusts its compressor speed to maintain your chosen temperature with minimal fluctuation. Instead of blasting at full power and shutting down repeatedly, it runs at a lower, steadier output. The result is smoother comfort and substantially lower electricity use.
Signs Your Current System Is Costing You Too Much
Ask yourself whether your air conditioner shows any of these signs:
- It is more than ten years old
- It takes a long time to cool a room even when running at full capacity
- Your electricity bills have gradually increased even though your usage habits have not changed
- It makes unusual noises or needs frequent repairs
- It does not have an inverter (check the product label or manual)
If several of these apply, the unit is likely costing you far more to run than a replacement would. If you have gas ducted system, you should definitely switch with the help of VEU government. The thing is government is giving air conditioner rebate in Victoria if you are switching from gas ducted to electric to encourage the switch.
Read more about VEU rebate here.
One of the most impactful things you can do right now without spending a single dollar is adjust your temperature setting.
The Victorian Government recommends setting your air conditioner between 23°C and 26°C during summer. Keeping the air conditioner at 26°C during the day and around 22°C when sleeping is well within the comfort range for most people while keeping energy use as low as possible.
For each degree you lower the temperature below 24°C, your air conditioner's energy use increases by approximately 5 to 10%. That is not a trivial figure. If you are running your unit at 20°C when 24°C would feel just as comfortable, you are potentially paying 20 to 40% more for the same hours of cooling every single day.
The most efficient approach is aiming for a difference of around 8°C between the outside temperature and your thermostat setting. So on a 32°C day, a setting of around 24°C makes both thermal and financial sense.
A Quick Reference for Victorian Conditions
The same principle applies in reverse for heating. Each degree you warm above 20°C in winter adds around 10% to your heating costs. Setting your air conditioner to 22°C and putting on a light layer is almost always the more economical choice.
Most modern air conditioners come loaded with features that the vast majority of homeowners never use. This is genuinely leaving money on the table.
What Eco Mode Actually Does
The eco, econo or active energy control setting, the naming varies by brand, reduces the output of your air conditioner's compressor once the room approaches the target temperature. Rather than continuing to run at full capacity, it slows down and moderates its cooling output to maintain comfort with less power. The Victorian Government specifically recommends using this setting to save energy and money.
This is not a significant sacrifice in comfort. Most households report that eco mode feels identical to standard operation once the room reaches the desired temperature.
Sleep Mode and Why It Matters
Sleep mode gradually adjusts the temperature over the course of the night, typically raising the cooling setpoint by around 0.5°C per hour over a few hours. This matches the natural drop in your body temperature as you sleep, which means you stay comfortable while the air conditioner works progressively less hard through the night.
Timer Functions
This is one of the most overlooked energy-saving tools in your home. Use your air conditioner's timer to:
- Switch the unit on 20 to 30 minutes before you arrive home rather than leaving it running all day
- Schedule shut-off 30 minutes before you leave in the morning
- Set a shut-off time overnight so the unit does not run past 2 am when temperatures have naturally dropped
If you have a time-of-use electricity tariff (check your bill to see if you do), energy prices can be double or more during afternoon and early evening peak periods. Scheduling your air conditioner use around off-peak times is a straightforward way to cut costs further.
Cooling an empty bedroom, an unused study and a hallway while you sit in the lounge room is one of the most common and costly air conditioning mistakes Victorian households make.
Zone Your Home Deliberately
For ducted systems, use your zone controls to direct cooling only to the areas where people actually are. Many ducted systems allow you to close off zones room by room and using this feature consistently can produce meaningful reductions in energy consumption.
For split-system households with multiple units, establish a simple household habit: close the doors of rooms not being used. A closed door stops conditioned air from circulating into uncooled spaces and reduces the volume of air your unit needs to maintain a temperature.
Multi-Split Systems and Targeted Cooling
If you have a multi-head split system one outdoor unit connected to multiple indoor heads, you have the flexibility to run only the zones you need. Running two heads at 24°C is significantly cheaper than trying to cool the entire house through a single ducted system that covers unused areas.
The principle is simple: the smaller the space you are cooling, the less energy your system uses to maintain that temperature.
Your air conditioner's biggest enemy is not the outdoor temperature itself; it is the heat that has already built up inside your home before you switch the unit on.
Solar heat gain through windows is responsible for a substantial portion of the indoor temperature rise on hot summer days. North and west-facing windows in particular receive direct sun during the hottest parts of the afternoon. If those windows are uncovered, your home can reach 35°C or more before you even turn on your air conditioner and your unit then has to work extremely hard to bring that temperature down.
The fix is straightforward: close curtains, blinds or shutters before it starts getting hot outside, not after. Heavy, light-coloured curtains or blockout blinds on north and west-facing windows can dramatically reduce the amount of heat entering your home.
Long-term, external shading solutions are even more effective because they block solar radiation before it reaches the glass. Options include:
- Fixed or retractable awnings over north and west-facing windows
- External roller shutters
- Planting deciduous trees on the northern and western sides of your home — these provide shade in summer while allowing winter sun through after they lose their leaves
You can set the perfect temperature, close all your doors and still be wasting significant energy if your home has gaps and draughts that allow conditioned air to leak out and hot air to creep in.
Where Energy Is Being Lost in Victorian Homes
The most common draught entry points in Australian homes are:
- The gap under external doors
- Around window frames, particularly older timber-framed windows
- Around sliding door tracks
- Through exhaust fans in bathrooms and kitchens when not in use
- Around recessed downlights in the ceiling
- Through the ceiling manhole access point
The Victorian Energy Upgrades program actually covers draught sealing as an eligible upgrade. You can receive discounted or free materials to seal gaps and vents in your home, which directly reduces the load on your air conditioner and cuts heating costs in winter too.
This is perhaps the simplest tip on this list and yet it is consistently the most neglected. A clogged filter restricts the airflow through your air conditioner's indoor unit, which forces the system to work harder to move the same volume of air. That increased workload translates directly into higher electricity consumption and, over time, accelerated wear on your system.
How Often Should Filters Be Cleaned?
As a general guide:
- Every two to four weeks during periods of heavy use (peak summer and winter)
- At the start of each season as a minimum if you use your air conditioner less frequently
- Immediately if you notice reduced airflow, a musty smell or the unit taking longer than usual to reach the target temperature
Cleaning the filter on a typical split-system air conditioner takes less than ten minutes. Most filters slide out from the front panel of the indoor unit and can be vacuumed or rinsed under running water. Make sure the filter is completely dry before reinstalling it.
When to Call a Professional
While filter cleaning is a DIY task, annual professional servicing is worthwhile for most households. A qualified technician can check refrigerant levels, clean the evaporator and condenser coils, inspect electrical connections and check that the outdoor unit is free from vegetation or debris. A well-maintained system runs more efficiently, lasts longer and is less likely to fail on the hottest day of the year, which is exactly when you need it most.
Ceiling fans use a fraction of the electricity that an air conditioner does, typically around 20 to The benefit of combining a ceiling fan with your air conditioner comes from the wind chill effect. Moving air makes you feel cooler than still air at the same temperature, because it accelerates the evaporation of moisture from your skin. Using ceiling fans together with air conditioning can make the environment feel 2 to 3°C cooler due to air movement alone.
What this means in practice is that you can raise your air conditioner's thermostat by 2 to 3 degrees and feel exactly the same level of comfort. Given that each degree of cooling adds around 5 to 10% to your running costs, raising the setpoint by 2 degrees while running a fan can cut your air conditioning energy use by 10 to 20% while your comfort level stays the same.
Getting the Fan Direction Right
Most ceiling fans have a summer and winter setting controlled by a small switch on the motor housing. In summer, the fan should rotate anticlockwise (when viewed from below) to push air downward and create that direct cooling sensation. In winter, set it to run clockwise at a low speed to gently circulate warm air that has risen to the ceiling back down into the room.
Of all the tips in this guide, ceiling insulation has the potential to deliver the largest long-term reduction in heating and cooling costs for Victorian homes. The Victorian Government states that effective ceiling insulation can save households up to $400 per year on their cooling and heating costs.
Why Your Ceiling Matters More Than You Might Expect
In summer, your roof absorbs solar radiation throughout the day and transfers that heat into the ceiling space and then into your living areas. An uninsulated ceiling allows this heat to radiate directly into your rooms, dramatically increasing the cooling load on your air conditioner. In winter, heat from your home rises and escapes through the same uninsulated ceiling.
Wall and Floor Insulation
While ceiling insulation delivers the greatest return, wall and underfloor insulation are also worth considering for older Victorian homes, particularly those built before the 1990s, which often have minimal or no insulation in the walls. Adding wall insulation is more involved and typically requires professional installation but it significantly reduces heat transfer through external walls on both hot and cold days.
From 1 October 2026, the Victorian Energy Upgrades program will offer insulation discounts for eligible Victorian households. This is a significant incentive to plan ahead if you are considering improving your home's thermal performance.
Sometimes the most effective advice is knowing what not to do. Here are the five most common mistakes Victorian homeowners make with their air conditioners and why each one costs more than it needs to.
Mistake 1: Setting the Temperature Too Low
As covered earlier, dropping your thermostat to 18°C or 20°C does not cool your home any faster than 24°C; it simply makes your air conditioner work much harder once the room reaches that temperature in order to maintain it. Always start at the recommended 24 to 26°C and adjust from there only if genuinely needed.
Mistake 2: Turning the Air Conditioner On and Off Repeatedly Throughout the Day
This is a widely held misconception: that blasting the air conditioner at a very low temperature for a short burst, then switching it off and enjoying the cool air until the next blast, saves electricity. It is not the most energy-efficient approach. Getting a room down to a very low temperature requires a large amount of energy. Modern inverter units are designed to run continuously at a modulated output, switching them off and on repeatedly works against that efficiency.
The smarter approach is to set a comfortable temperature (24 to 26°C) and let the inverter system maintain it continuously. The unit will automatically reduce its output as the room approaches the setpoint, consuming far less energy than repeated cold blasting cycles.
Mistake 3: Ignoring Filter and System Maintenance
A dirty filter, blocked vents or a poorly maintained outdoor unit can increase electricity consumption by a meaningful margin and reduce the effective cooling output of the system. Maintenance is not optional; it is part of running your air conditioner economically.
Mistake 4: Running the Air Conditioner with Windows and Doors Open
This sounds obvious, but it happens more often than you would think, especially in homes where family members have different temperature preferences. Every open window or door allows conditioned air to escape and warm outside air to enter, forcing your system to continuously compensate. Close all external windows and doors before starting your air conditioner and keep them closed while it is running.
Mistake 5: Running an Old, Inefficient System Because Replacement Feels Too Expensive
The upfront cost of a new air conditioner is a real barrier for many households. But when you factor in the running cost difference between an older system and a high-efficiency modern unit which can easily amount to hundreds of dollars per year, plus the Victorian Energy Upgrades discounts currently available, the financial case for upgrading is often stronger than most people assume. An inefficient system is not cheap to run. It just hides its cost in your quarterly electricity bill.
Most people try to reduce their energy bills by simply using their air conditioner less. That approach works, but it also means being uncomfortable in your own home. The smarter strategy is making every hour of cooling more efficient, so that when you do run your air conditioner, it costs you as little as possible.
When the right temperature settings, regular maintenance, a well-sealed and insulated home and a modern energy-efficient system all work together, Victorian homeowners can stay genuinely comfortable through summer and winter without being hit by bills that feel completely out of proportion to the comfort they are getting.
Start with the tips you can act on today: adjust your thermostat, clean your filter, close your curtains before the afternoon heats up and use your eco mode. Then consider whether upgrading your system with Victorian energy rebate makes sense for your situation. The combination of immediate habit changes and a longer-term upgrade is where the real savings sit.
1. What is the most energy-efficient temperature for an air conditioner in Australia?
The Victorian Government recommend 24°C to 26°C for cooling in summer and 18°C to 20°C for heating in winter. Each degree you move beyond these ranges adds approximately 5 to 10% to your air conditioner's running costs.
2. Does turning an air conditioner on and off throughout the day save electricity?
No. Repeatedly switching the unit off and blasting it at a very low temperature to re-cool the room is not more efficient than setting a comfortable temperature and letting a modern inverter unit run continuously at a modulated output. Inverter air conditioners are designed to maintain temperature steadily, which is where their efficiency advantage lies.
3. Is it cheaper to run a fan or an air conditioner?
Yes. Ceiling fans generally use much less electricity than air conditioners. Using both together can help reduce overall cooling costs.
4. How often should air conditioner filters be cleaned?
Filters should be checked regularly and cleaned whenever dust accumulation becomes visible, particularly during periods of heavy use.
5. Do old air conditioners use more electricity?
In many cases, yes. Older systems are typically less efficient than modern inverter-based reverse-cycle air conditioners.
6. What is Energy Saver Mode on an air conditioner?
Energy Saver Mode reduces compressor operation and optimises cooling performance to lower electricity consumption.
7. Are rebates available for energy-efficient air conditioners in Victoria?
Eligible households may access incentives through programs such as Victorian Energy Upgrades when installing qualifying systems through accredited providers.
8. How much electricity does a reverse-cycle air conditioner use?
Consumption varies depending on system size, efficiency rating, operating conditions and temperature settings.
9. Is it better to leave the air conditioner running all day?
Generally, it is more efficient to cool the home only when needed and use timers or smart controls to manage operation.
10. What is the cheapest way to cool a house in summer?
Combining shading, insulation, natural ventilation, ceiling fans and efficient air conditioning usually delivers the best balance of comfort and cost savings