Running Cost: Which Saves You Money in 2025?
Your home’s heating and cooling account for 40% of total energy consumption, making split system and ducted system cost differences significant to your budget. Split systems cost between $600 and $2,800 to install, and ducted systems require a bigger initial investment that starts at $9,000.
A 2.5-kilowatt split system consumes 511 kilowatt-hours each year, which adds about $110 annually to your energy bills. Ducted systems cost more because they cool the entire house through extensive ductwork. A ducted system with a 2.6 power input adds $0.91 per hour to your electricity bill at standard rates. That’s around $1500 each month based on running your heater 8 hours a day.
Due to split systems being more energy efficient and costing less to run, the government now has rebates available when you replace a ducted system for a split system.
Replacing a Ducted Gas Heater with Four Split Systems:
Upgrade Sizes: One 8kW unit and three 3kW units
Indicative Discount: Up to $2,520
Replacing a Ducted Gas Heater with a Multi-Split System:
Upgrade Size: One 10kW outdoor unit
Indicative Discount: Up to $2,940
*Minimum customer contributions apply, but significant savings are available!
Running Costs
Modern AC systems come packed with innovative features that can make a big difference in your monthly energy bills. Let’s look at how these new technologies affect the running costs of ducted and split systems.
Smart Controls
Smart AC controls are changing the game when it comes to cutting down operating costs. These systems use advanced sensors that detect if anyone’s in the room and adjust cooling settings automatically. This stops energy waste in empty spaces. Smart thermostats also let you manage temperatures precisely with scheduled programmes, which leads to big savings on your utility bills.
Buildings that use smart HVAC control systems cut their operating costs by 9-10% compared to older setups. Hotels see even better results – they usually make back their money within 1-2 years through lower energy bills and better efficiency.
Smart features bring great benefits to both system types:
- Control your AC from your smartphone
- Temperature adjusts based on when you use each room
- See how much energy you’re using right away
- Use voice commands with your smart assistant
Inverter Technology
Inverter technology is a vital advancement in AC systems. Unlike old fixed-speed units, systems with inverters can change their compressor speed based on how much cooling you need. This saves a lot of energy.
The numbers tell the story – inverter ACs use 30-50% less power than regular ones. They save energy by avoiding the constant on-off cycling that wastes power in standard systems. Instead, they keep temperatures steady by adjusting the compressor speed as needed.
Inverter technology gives you these advantages:
- Cooling power matches what you actually need
- Rooms cool down faster at first
- Temperature stays more steady
- Runs more quietly at lower speeds
Split systems work really well with inverter technology because they can quickly adjust cooling for each room. Ducted systems also benefit, especially with zoning options that let you vary cooling in different parts of your house.
EPA data shows that homes using smart thermostats can cut their heating and cooling costs by 8-15%. These systems work even better when paired with inverter technology. They keep temperatures consistent while using minimal power.
Research shows that ACs with inverters work best by running at lower speeds for longer times instead of switching on and off frequently. This not only saves energy but also helps your system last longer because parts don’t wear out as fast.
You’ll notice the biggest difference in running costs during mild weather. Standard systems run at full power no matter what, but inverter units adjust their output to use only the energy needed for comfort. This flexibility pays off when you don’t need maximum cooling.
Zone Control
Zoning capabilities play a key role in your air conditioning system’s running costs. You can make better decisions about cooling specific areas of your home by knowing how zone control affects your energy use.
Single Room vs Whole House Cooling
Your energy bills change a lot based on whether you cool a single room or your entire house. Split systems work great for single-room cooling, with yearly energy costs as low as $16.82 for a 2.5-star unit. On the flip side, non-zoned ducted systems that cool your whole house use much more power, with yearly costs hitting $154.43 for a 2-star system.
Space heating and cooling devices make up 40% of your home’s energy use. You can save money by cooling only the rooms you use. A split system cooling one room uses about 511 kilowatt-hours each year, while whole-house ducted systems use quite a bit more power.
Multi-Zone
Multi-zone systems can help you save money through smart temperature control. Research shows that well-planned zoning systems cut energy bills by up to 30%. These savings come from cooling only the spaces people use while avoiding waste in empty rooms.
Multi-zone systems work so well because they:
- Control temperatures in different rooms independently
- Send cool air only where you need it
- Lower the overall strain on your cooling system
- Use energy based on when people are in each room
Research proves that room-level zoning with occupancy detection saves 20.5% more energy than single-zone thermostats. Multi-zone split systems rated at 3.5 stars cost $87.15 yearly to run, while similar non-zoned ducted systems cost $108.56.
Temperature Management Options
Zoning systems come with smart temperature management features that help cut costs. Each zone has its own thermostat for precise control. The system keeps track of air temperature based on what you want, so you stay comfortable without wasting energy.
Smart algorithms use data from sensors and thermostats to get the best performance in all zones. Motorised dampers adjust airflow once a zone reaches the right temperature, which stops unnecessary cooling in that area. This targeted approach helps most during peak hours when electricity costs more.
Set your air conditioner to 26°C during the day and 22°C at night to maximise efficiency. Every degree lower uses 5-10% more energy. You can also use ceiling fans with your air conditioning to make rooms feel 2-3°C cooler through air movement, which lets you set higher temperatures while staying comfortable.
Daily Usage Cost Breakdown
Daily operational expenses of air conditioning systems show clear differences between ducted and split units. A full picture of peak, off-peak, and standby costs will help you understand what you can save.
Peak Hour Expenses
Electricity rates usually peak between 5 pm and 8 pm on weekdays. Most households just need cooling during these hours. Split systems are budget-friendly and cost about $0.38 to $0.54 per hour. Ducted systems cost more at $0.92 to $1.45 per hour during these premium-rate periods.
A medium-sized home’s ducted air conditioning costs add up to $15.29 – $30.58 daily with average use. Three split systems cooling the same space cost roughly $260.82 yearly. This makes split systems a budget-friendly option for most homes.
Off-Peak Savings
Smart timing of your cooling can save you money. Running your system outside peak hours—before 7 am, between 9 am–5 pm, or after 8 pm—cuts your expenses. Your cooling costs drop by 30% during these times.
Here’s what different systems cost per hour:
- Split systems: $0.38 – $0.54
- Multi-split systems: $0.54 – $0.76
- Ducted systems: $0.92 – $1.45
Pre-cooling your space helps save money. Cool your home earlier and set the temperature one degree higher than usual. This keeps you comfortable and helps avoid premium rates.
Long-term Cost Analysis
You need to analyse long-term financial implications carefully to make informed decisions about air conditioning systems. A detailed cost evaluation over several years shows significant insights into system value and efficiency.
5-Year Cost Projection
Switching to newer split system air conditioning can save you substantial money. The data shows that new split systems can cut energy costs by 46% compared to older models for cooling and heating.
Ducted systems cost between $7000 to $15,000 including installation. Split systems are cheaper, ranging from $900 to $8000 for the unit, plus installation. Our spilt systems start at $2,000 including installation and up to $4,500 including installation. See here for a full list of prices.
A detailed cost breakdown shows:
- Annual energy consumption for split systems: 180kWh at 31.59p per kW
- Ducted system hourly operation: $3.36 in summer
- Annual ducted running costs: $593.25 (based on 2 hours daily usage) – we know in Melbourne our heaters stay on for a lot longer than 2 hours, so our average could be based on 8 hours a day – $2,372
System Lifespan Comparison
Your air conditioning system’s lifespan greatly affects its overall value. Modern units last longer, typically 15 to 20 years with proper maintenance. Older systems usually work for 10 to 15 years.
The climate where you live affects how long your system lasts. Units in humid areas might work for 8-10 years, while those in drier climates can run well for 12 years or more. Regular servicing can help your system last longer than expected.
Modern systems come with advanced features like:
- Variable-speed compressors
- Smart thermostats
- Improved refrigerants
These features boost durability and reduce wear, helping systems last longer. Many new units also offer extended warranties for extra financial protection.
Return on Investment Calculation
Here’s how to calculate ROI for air conditioning systems: ROI = (Annual Energy Savings / Initial Investment Cost) x 100
Key factors to think over when calculating returns:
- Initial purchase and installation costs
- Projected energy savings
- Maintenance expenses
- System lifespan
- Potential property value increase
Let’s look at a real example: A $15,289.90 energy-efficient system that saves $1,834.79 yearly will save $9,173.94 over five years. This investment pays for itself in nine years.
New systems are 19% more efficient at reducing CO2 emissions than models from ten years ago. You might qualify for government rebates when upgrading to energy-efficient models, which improves your ROI.
Getting the right size system is vital to maximise returns. Small units struggle to cool spaces and use too much energy. Large systems cost more to run than necessary. We can advise you on the best-sized system and make sure you get the right one. Regular maintenance plays a big role in long-term costs. Clean filters, fans, and coils keep efficiency high. Skipping maintenance increases energy use and can wipe out your expected savings. A regular maintenance schedule is vital to get the returns you expect.
Energy Saving Tips and Tricks
Your air conditioning system works best with smart temperature control and regular maintenance. Smart usage habits and proper upkeep will cut down operating costs for both ducted and split systems.
Optimal Temperature Settings
The right temperature setting makes a big difference in energy savings. Each degree you lower in summer pushes up energy use by 5-10%. Your best bet is to keep indoor temperatures between 20-25°C during the day and 22°C at night.
Summer cooling works best when you keep the difference between outside and inside temperatures at 8°C. This strategy saves energy and keeps everyone comfortable. The sweet spot for cost-effective operation lies between 20-25°C. A good way to think of it is each degree adds $10 per hour around about. $10 per degree when turned down in summer and $10 per degree turned up per hour.
Efficiency Strategies
The right habits and proper care lead to real savings. Built-in efficiency settings and timers help pre-cool your space before peak hours. Ceiling fans working with your air conditioning can make rooms feel 2-3°C cooler by moving air better.
Good insulation plays a key role in keeping your system efficient. Heat sneaks in through the roof – about 25-35% of it. Fixing air leaks can drop heating and cooling costs by up to 25%.
Your system will work better if you:
- Clean filters monthly
- Keep outdoor units in the shade for 10% better efficiency
- Leave enough space around outdoor units
- Keep grills and vents clean so air flows freely
Ducted systems need good zone management. Cool only the rooms people use and change settings as the day goes on. Split system owners should follow the same rule – cool only the spaces in use.
These strategies and regular maintenance will give you the best performance while keeping costs down. Modern units come with eco-modes and programmable settings that help save even more energy.
Conclusion
Split systems stand out as the most economical choice for many homes. They save money through easier installation and use less energy. Ducted systems need more money upfront, but their ability to cool the entire house makes them worth it for bigger spaces, especially with smart zoning.
The combination of smart controls and inverter technology has changed everything. These features cut energy bills by 8-15% and give better temperature control. Temperature settings play a vital role – your system should run between 24-26°C during the day. This small change reduces energy use by 5-10% for each degree adjusted.
Money savings add up nicely as time passes. Split systems run at $0.38 to $0.54 per hour at peak times. Ducted systems cost more to operate at $0.92 to $1.45. Good maintenance keeps these systems running at 95% of their original efficiency and can help them last beyond 15 years.
Your specific needs, available space, and budget should guide the choice between ducted and split systems. Smart timing of cooling periods and proper zone management will help you get the most from your investment. Regular system maintenance keeps energy bills in check all year round.
FAQs
Q1. Which system is more cost-effective to run: ducted or split air conditioning? Split systems are generally more cost-effective to run than ducted systems. They consume less energy, with a typical 2.5-kilowatt split system using about 511 kilowatt-hours annually, costing roughly $110 in energy bills. However, the most cost-effective option depends on your specific home layout and cooling needs.
Q2. How do modern features like smart controls and inverter technology affect running costs? Modern features significantly reduce running costs. Smart controls can lead to 9-10% operational cost reductions, while inverter technology can reduce electricity consumption by 30-50% compared to non-inverter systems. These features allow for more precise temperature control and energy management.
Q3. What are the advantages of zoning in air conditioning systems? Zoning allows for more efficient cooling by directing air only to occupied areas. Multi-zone systems can reduce energy bills by up to 30%. For ducted systems, proper zoning prevents unnecessary cooling of unused spaces, while split systems naturally allow for room-by-room temperature control.
Q4. How do ducted and split systems compare in terms of long-term costs? While ducted systems have higher initial costs ($9,000+), they can be more cost-effective for larger spaces over time. Split systems have lower upfront costs ($600-$2,800) and are generally cheaper to run. The most cost-effective option depends on factors like home size, usage patterns, and system lifespan. Now rebates are available for replacing ducted gas systems with more efficient eclectic run split systems.
Q5. What are some energy-saving tips for air conditioning systems? To maximise efficiency, set your air conditioner between 24-26°C during the day and 22°C at night. Regular maintenance is crucial – clean filters monthly and service the system every 1-2 years. For ducted systems, use zone management to cool only occupied spaces. Using ceiling fans alongside air conditioning can make rooms feel 2-3°C cooler, allowing for higher temperature settings without compromising comfort.
