Do Split Systems Use a Lot of Electricity? A Detailed Guide for Australian Homes & Businesses

Air conditioning is no longer a luxury in Australia—it’s a necessity.

With the country's extreme summer temperatures and increasing energy bills, more Australians are focusing on the efficiency and running costs of their cooling systems.

One question frequently asked is: “Do split systems use a lot of electricity?”

In this comprehensive article, we’ll explore the electricity usage of split system air conditioning in Australia, compare it to air cooled package units, and provide practical tips to reduce your cooling costs.

What Is a Split System Air Conditioner?

A split system air conditioner consists of two main components: an indoor unit that delivers cool air and an outdoor compressor that expels heat. These systems are typically used for cooling (and sometimes heating) individual rooms or zones.

Their popularity in Australia has grown over the past decade due to their affordability, quiet operation, and energy efficiency.

Split systems can be either:

• Non-inverter (fixed speed) or

• Inverter-based (variable speed), with inverter models being more efficient in maintaining temperature without frequent on/off cycling.

Electricity Usage of Split System Air Conditioning in Australia

So, do split systems use a lot of electricity?

The short answer is: Not necessarily. 

Split systems are among the most energy-efficient cooling options for individual spaces, especially when compared to ducted systems or older window units. However, actual electricity usage depends on several factors:

1. System Size and Capacity

Choosing the right size is critical. An undersized unit will work harder and longer to cool the space, consuming more electricity. Conversely, an oversized unit may cycle on and off frequently, which also wastes energy.

As a general guide:

• A small bedroom (10–15 m²) needs a 2.5 kW unit.

• A living room (20–40 m²) may require a 5–7 kW unit.

2. Energy Efficiency Ratings

In Australia, the Zoned Energy Rating Label (ZERL) helps you compare the efficiency of air conditioners based on your local climate zone. A unit with a high ZERL rating can reduce your electricity costs significantly.

3. Daily Usage Habits

Running the system for 6–8 hours a day during summer will clearly consume more electricity than occasional use. Usage patterns matter.

4. Temperature Settings

Setting the temperature too low increases consumption. Each degree lower than 24°C can increase energy use by 5–10%.

5. Maintenance and Condition

Dirty filters, blocked vents, and refrigerant leaks all make the unit work harder. Regular maintenance is essential to keeping power consumption low.

Average Running Costs of Split Systems in Australia

To give a rough estimate:

• A 2.5 kW split system running for 6 hours a day could use about 1.5–2.0 kWh per hour, costing ~30–60 cents per hour, depending on your electricity rates.

• A 7 kW unit may use 2.5–3.5 kWh per hour, costing ~60 cents to $1.20 per hour.

If used every day over summer, monthly costs can range from $30 to $150, depending on system size and usage.

Split System vs Air Cooled Package Unit: A Power Consumption Comparison

Another common cooling system in Australia, especially for commercial or larger residential settings, is the air cooled package unit.

What is an Air Cooled Package Unit?

An air cooled package unit combines all essential components—compressor, condenser, evaporator, and fan—into a single compact structure, usually installed on rooftops or external platforms.

Unlike split systems, they are centralized systems designed for larger spaces.

Key Differences in Electricity Usage

Feature	Split System	Air Cooled Package Unit
Cooling Area	Single room or zone	Whole floor or building
Installation	Simple, room-based	Complex requires ductwork
Power Usage	Low to moderate (per unit)	High, due to larger capacity
Best Use Case	Homes, small offices	Warehouses, malls, commercial properties
Energy Efficiency	Very efficient for small spaces	Moderate efficiency for large coverage

If your goal is to cool a single room or a small office, a split system will almost always use less electricity than an air cooled package unit.

However, for larger-scale applications where centralized cooling is needed, air cooled package units can be more practical, even if they consume more power overall.

Pros and Cons: Split Systems vs Air Cooled Package Units

✅ Advantages of Split Systems:

• Lower running cost for small spaces

• Quick installation and minimal disruption

• High energy efficiency (especially inverter models)

• Quiet operation indoors

• Independent temperature control for different rooms

  
  

❌ Limitations:

• Not suitable for cooling multiple rooms efficiently

• Multiple outdoor units may clutter the property

✅ Advantages of Air Cooled Package Units:

• Ideal for large open-plan areas or multiple zones

• Centralized cooling simplifies control

• No need for multiple units

❌ Limitations:

• Higher upfront and running costs

• Requires ducting, which may cause energy loss

• Louder and bulkier than split systems

Tips to Minimize Electricity Use with Split System Air Conditioning

Regardless of which cooling system you use, there are smart ways to keep energy costs low:

1. Use Ceiling Fans Together

   Combining a split system with ceiling fans helps circulate air and allows you to set a higher temperature on your AC.

   
   

2. Close Doors and Windows

   Prevent hot air from entering and cool air from escaping.

   
   

3. Insulate Your Property

   Proper insulation in ceilings, floors, and walls can reduce the need for prolonged AC use.

   
   

4. Regularly Clean Filters

   Dirty filters reduce airflow, making the system work harder.

   
   

5. Use Timers or Smart Thermostats

   Only run the AC when needed and avoid cooling unoccupied rooms.

   
   

6. Set Temperatures Wisely

For summer, a comfortable setting of 24°C to 26°C is energy efficient.

Final Verdict: Do Split Systems Use a Lot of Electricity?

In summary, split system air conditioning in Australia is generally energy-efficient, especially for cooling small to medium-sized rooms. While all air conditioners consume electricity, a well-chosen, properly installed, and regularly maintained split system will not use an excessive amount of power.

When comparing with larger systems like the air cooled package unit, split systems tend to offer lower electricity consumption, provided they are used appropriately for space.

For homeowners, renters, or small businesses looking to cool specific rooms without sky-high energy bills, split systems remain a top choice.

If cooling needs grow or the area is extensive, air-cooled package units may be more suitable—though they often require a bigger power budget.