Homeowners often wonder, “How much to install an AC unit?” but the answer varies based on system size, efficiency, and installation complexity. Whether you're replacing an old system or setting up a new one, understanding the key cost factors can help you make a well-informed decision.
This blog explores the primary elements that influence aircon installation costs in Australia, the average pricing, and ways to reduce expenses while ensuring quality.
Key Factors Affecting New AC Installation Cost
The overall AC installation cost is determined by various factors, from the type of unit to labor and additional modifications. Here are the primary elements that impact pricing:
1. Type of Air Conditioning System
The cost of air conditioner installation heavily depends on the type of system you choose. Different AC units come with varying price points and installation requirements:
- Split System AC – A popular choice for cooling individual rooms, with units costing between $600 and $2,500 and cost to install AC system ranging from $800 to $2,200.
- Ducted AC – Ideal for cooling an entire home but more expensive, typically costing $5,000 to $12,000, with installation adding $2,000 to $5,000.
- Window AC Units – A budget-friendly option costing $300 to $1,200, but installation is limited to small spaces.
- Portable AC Units – Costing $200 to $1,000, these are easy to use but lack the power of permanent solutions.
2. Home Size and Cooling Capacity
The size of your space dictates the AC unit’s capacity (measured in kilowatts). Choosing the right size prevents inefficiency and unnecessary energy consumption:
- Small rooms (up to 20m²): Need a 2.5kW unit, costing around $600 to $1,500.
- Medium rooms (20m²-40m²): Require a 3.5kW–5kW system, priced at $1,000 to $3,000.
- Larger areas (40m²+): Need 7kW+ units, starting from $2,500.
3. Installation Complexity and Labor Costs
The cost to install an AC system also depends on the complexity of the job. Factors that influence installation expenses include:
- Home structure and accessibility – Multi-story homes or tricky installation points require additional labor and equipment.
- Electrical upgrades – Some homes require switchboard upgrades, which add extra costs.
- Ductwork requirements – If installing a ducted AC system, labor and materials increase the total price.
It’s always a good idea to hire tradies with experience in AC installation to ensure proper setup and avoid costly mistakes. Professional installation fees range from $80 to $150 per hour, varying by location and project difficulty.
4. Energy Efficiency and Brand Selection
Premium brands like Mitsubishi, Daikin, and Fujitsu may have higher upfront costs but offer superior performance and durability. Opting for an energy-efficient model reduces electricity bills over time.
AC units with higher Energy Star ratings may be expensive initially but save money in the long run.
5. Additional Costs
Beyond the AC unit and labor, homeowners may face additional expenses, such as:
- Permits and compliance costs (if required).
- Smart home integration features like Wi-Fi control.
- Regular maintenance and servicing to prolong AC lifespan.
Average Cost of AC Installation in Australia
Understanding the air conditioner installation cost in Australia helps with budgeting. Below is a breakdown of the estimated costs:
| AC Type | Unit Cost | Installation Cost | Total Estimated Cost |
| Split System AC | $600 - $2,500 | $800 - $2,200 | $1,400 - $4,700 |
| Ducted AC | $5,000 - $12,000 | $2,000 - $5,000 | $7,000 - $17,000 |
| Window AC Units | $300 - $1,200 | $150 - $700 | $450 - $1,900 |
| Portable AC Units | $200 - $1,000 | N/A | $200 - $1,000 |
For a more accurate estimate, consulting professional installers is recommended. Factors like home insulation, location, and additional accessories can also affect pricing.
How to Reduce AC Installation Costs
If you're looking to minimize expenses while ensuring quality, consider these tips:
- Compare multiple quotes – Contact at least three professionals to find the best aircon installation rates.
- Choose the right AC size – Avoid overspending on oversized units that consume unnecessary energy.
- Install during off-peak seasons – Prices are generally lower during winter or autumn when demand is low.
- Look for energy-efficient options – Though initially costly, they save money in the long term.
- Bundle installation with maintenance plans – Some companies offer discounts when you sign up for service agreements.
- Check for government rebates – Some states offer financial incentives for energy-efficient air conditioning replacement.
Final Thoughts
The cost of AC installation varies based on the type of system, home size, labor charges, and additional modifications. While split systems are a cost-effective choice for individual rooms, ducted systems provide whole-home cooling at a higher price.
Understanding the installation cost and comparing multiple quotes ensures you get the best deal. By choosing the right system size, opting for energy-efficient models, and scheduling installations in off-peak seasons, you can reduce the AC installation cost while enjoying a comfortable indoor environment.