The Cheapest Ways to Cool Down This Summer
William Jolly |
But staying cool doesn’t have to mean breaking the bank.
This guide explores the current state of electricity prices, running costs for air conditioners, and alternative ways to stay cool. It offers practical tips for saving on energy bills while saving your sanity in the 30+ degree days to come.
On this page:
- The current state of electricity in Australia
- What’s the average electricity bill in Australia?
- Average air conditioner running costs
- Top tips to save on energy bills this summer
- How to cool down without air conditioning
The current state of electricity in Australia
Australia’s electricity market has been volatile in recent years, with prices steadily rising due to both global and domestic pressures.
While prices have still risen over the past 12 months or so, they’ve done so at a much slower pace. According to the Australian Bureau of Statistics (ABS) CPI data for the recent June 2024 quarter, electricity prices rose 2.1% over three months and 6% over 12 months.
However, the introduction of various energy bill relief funds from both State and Federal Governments in 2024 means these increases are much smaller than they should be.
“Most eligible households continued to receive the Energy Bill Relief Fund rebate in the June quarter. Excluding the rebates, electricity prices would have increased by 14.6% annually,” Michelle Marquardt, ABS head of prices statistics, said.
Compare the Market’s Household Budget Barometer 2024, meanwhile, discovered that the average quarterly electricity bill increased by $50 in the eight months to August 2024.

What’s the average summer electricity bill in Australia?
We have to go back to last year (2023) to find figures for the average summer electricity bill via Canstar Blue.
Canstar Blue’s research, which involved more than 4,000 households, found that the average quarterly electricity bill in December 2023 was approximately $332.
Average summer electricity bill by state
By state, Tasmania had the highest average electricity bill at $372:
Average summer electricity bill by household size
Unsurprisingly, larger households pay more for energy but less per person. A five-person household had an average quarterly bill of $338, more than a one-person household at $307. But, assuming everyone chips in, that’s $68 per person each quarter:
Average summer electricity bill by age
Older people tend to pay much less for electricity in the summer than younger people, with 70+ year olds paying almost $100 less on average compared to 18 - 29 year olds.
There are a number of reasons why this might be the case, such as older people being more frugal or living in smaller households, having more money to pay for energy-efficient appliances, or taking advantage of the discounts and rebates available to them:
Average air conditioner running costs
Air conditioners are often the go-to solution for escaping the summer heat. However, their convenience often comes at a cost. On average, CHOICE found that running an air conditioner for several hours a day can add between $150 and $1,160 to your annual electricity bill, depending on the unit's efficiency, room size, and usage:
Size | Annual cost* |
---|---|
Small (up to 4kW) | $150–370 |
Medium (4–6kW) | $340–650 |
Large (over 6kW) | $530–1160 |
Fans vs aircon: Which is better?

Contrary to popular belief, ceiling fans (or even pedestal fans) do not use more energy than air conditioning. Fans simply blow air onto you at different speeds, whereas an air conditioner has to generate heat (or cold) and move it around a room.
This naturally requires a lot more energy and, therefore, can cost more to use an air conditioner. A ceiling fan uses around 65 watts of electricity per hour, which is about two cents. Comparatively, split-system air conditioning uses about 20 times more than this, while ducted AC uses almost 100 times more:
Fan vs air conditioner cost per hour | ||
---|---|---|
Ceiling fan | Split-system AC | Ducted AC |
$0.02 | $0.33 - $0.40 | $1.48 - $1.94 |
Fans are also much cheaper to buy in the first place compared to air conditioning units, as you’ll usually need a licensed professional to install your air-con unit:
Fan vs air conditioner initial cost
Air conditioning:
- Portable: $300
- Split-system: $600
- Whole-house ducted: $6,000
Fans
- Desk fan: $20
- Pedestal fan: $25
- Box fan: $30
- Tower fan: $50
- Ceiling fan: $70
Fans are clearly more energy efficient and cheaper to buy/install, but the main reason air conditioners are favoured over them is simple. In most cases, an air conditioner is just better at keeping you cool than a ceiling or pedestal fan.
You can run a pedestal fan all day and use around 15 minutes worth of air-con energy, but you won’t feel as cool and relaxed as you would with a powerful air-conditioner.
The choice is up to you and whether you’ve weighed up the pros and cons of both. Some of our tips below will explain how you can save money on your appliances, such as air conditioners.
Top tips to save on energy bills this summer
While we encourage you to read our article on cutting back on electricity expenses generally, this section will specifically discuss some tips and tricks for spending less on keeping cool in summer.
Maintain your air conditioner
Regular maintenance of your air conditioner ensures it operates efficiently. Clean the filters, check refrigerant levels, and make sure the unit is in good working order before the summer heat arrives.
If it needs some work, consider getting it properly serviced.
Use energy-efficient appliances
Old appliances can be energy hogs. If your current appliances are outdated, upgrade to energy-efficient ones.
These newer appliances use less power and can significantly reduce your energy consumption over time. According to Energy Consumers Australia, every extra star rating will save:
- 30% on dishwashers,
- 25% on washing machines and clothes dryers, and
- 20% on TVs.
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Change your air con’s temperature
According to Energy.gov.au, every degree higher on your air conditioner can save between 5% and 10% on energy use. So set the temperature as high as you feel comfortable with; the ideal range is between 24 and 27 degrees Celsius.
Keep the cool air in
Seal any gaps around windows and doors to prevent cool air from escaping. During the hottest parts of the day, blackout curtains or reflective window coverings can also help block heat from entering your home.
Don’t use the dryer!
Australia is the sunniest continent on Earth, particularly during summer. So, unless it’s raining, why on earth would you use a dryer? Letting your clothes dry in natural sunlight can save you roughly 44 cents for each load of washing. That’s about $100 per year!
On a sunny summer’s day, clothes left to dry in the sun can be ready in just a few hours.
Avoid ‘standby’ power
Many appliances continue to use energy, called' standby' mode, even when you’ve hit the off button or you’re not using them. According to Choice, switching your appliances off at the wall can use up to 10% less energy!
You’ll probably be running certain appliances more during the summer months, so it doesn’t make sense to have anything you’re not actively using burning power!
Switch to a time-of-use plan
If available, consider switching to a time-of-use electricity plan. These plans offer cheaper rates during off-peak hours, making it more cost-effective to run energy-hungry appliances like washing machines or dishwashers at night.
The Australian Government’s Energy Made Easy website allows you to compare different energy plans and find one that works for you.
How to cool down without air conditioning
There are some handy ways to stay cool without using your appliances at all. Well, okay, you might have to use them a little bit, but the idea here is to get by without sitting in front of a fan all day.
Maximise your ventilation.
Open windows at opposite ends of your home to create a cross-breeze. This natural ventilation helps circulate cool air.
If this isn’t an option, grab an ice pack and place it in front of a fan. It works even better if you can do this more than once at different points in a room. The cold air blown towards you from a melting block of ice can simulate the effects of an airconditioner (sort of).
Bust out the kiddie pool.
Cool down outdoors by using inflatable pools or sitting in shaded areas. It’s a fun and cost-effective way to stay cool without running up your energy bill.
Of course, if you have a real pool, you can just use that, but that isn’t as fun, is it? Inflatable pools from Big W, for example, cost as little as $10!
Stay hydrated!
Staying hydrated with plenty of water doesn’t cool you down by itself. But it does help your body self-regulate its temperature throughout the day. It might sound gross, but drinking water means your body can produce the right amount of sweat to cool itself down. It's kind of like how a dog pants to stay cool.
So drink lots of water. That’s it, that’s the tip.
Head downstairs and block out the sun.
To prevent sunlight from heating your home, install blackout curtains or blinds during the hottest part of the day. You can also use reflective window covers to block heat.
If you can’t do that, then grab some indoor plants and put them in the way of the sun if possible. This can also generate some bonus shade!
Another handy tip is to head downstairs if you live in a multi-storey. Heat rises!
Stay inside during the day, party at night!
Chill out in the air conditioner or iced fan during the day and save the socialising for the evening when it’s cooler. A hot day is your perfect excuse to stay inside and be lazy!
Cooking inside during the day can also be a surefire way to get yourself hot and sweaty. So, consider leaving your cooking until nighttime. Even better, cook outside or in the backyard if that’s an option.
Use cooling fabrics.
Swap out your bedding and clothing for breathable, lightweight fabrics like cotton or linen. These fabrics allow better airflow and help your body stay cool. Wool tends to get a lot hotter, and don’t even get us started on leather!
Dress in light colours.
Another top tip for getting dressed for a hot day is to wear colours that reflect heat, not absorb it. White, light blue, light green, etc., can make a big difference compared to wearing black or dark blue, especially if you’re facing a day in the sun.
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You can get in touch with William via williamj@jacarandafinance.com.au.