Aircon mistake costing Aussies millions

With energy prices soaring, and several states heading for heatwave conditions, many Aussies will end up spending much more than they need to in order to keep their homes cool.

Airconditioning costs are soaring, thanks to hikes in home electricity prices, but Aussies are still wasting a combined $28m on blowing cool air into empty homes this summer.

The federal government estimates there are 16.5m small and medium sized air conditioning units installed in Australia, and they‘re responsible for 40 per cent of a household’s total electricity consumption during summer months.

Consumer site Finder found the average Aussie opts for an ambient air temperature of 22.1° and uses their airconditioning for 5.8 hours a day.

But some 5 per cent of users admit to running their units even when they aren’t home, adding an extra $28.8m to the $2.4bn Aussies are expected to pay to keep cool at home this summer.

While this might seem wasteful, when Finder asked consumers the same question in 2020, the proportion who said they left their airconditioning on when they weren’t home was 10 per cent.

Finder’s survey of 1114 Aussies revealed cost concerns are prompting many of us to switch off our aircon: 52 per cent of respondents said they intended to use their units less to reduce their summer energy bill.

Graham Cooke, Finder’s head of consumer research.

Sam Ringwaldt, CEO and co-founder of Melbourne based climate tech start-up, Conry Tech. Picture: Supplied

But those good intentions could be put to the test in some areas over the next few days, with Brisbane expected to reach tops of 34° and 33°, and Sydney to hit highs of 28° and 27° on Friday and Saturday.

Finder’s head of consumer research Graham Cooke said many households will “find themselves making sacrifices just to keep the airconditioning running” this summer.

“The cost of running an airconditioning unit can put a significant strain on household budgets, especially for those living in areas with high electricity prices,” he said.

Sam Ringwaldt, CEO of Melbourne based start-up Conry Tech, estimated Aussies would spend an extraordinary $12.4bn on their airconditioning in 2023, an increase of $2.5bn from what they paid in 2020.

There were several reasons why.

“Energy prices have spiked, more people are working from home, and El Nino is set to return in 2023. Our AC units will be on constantly, and costing us more than ever,” he said.

Mr Ringwaldt said the situation was exacerbated by the plethora of old airconditioning units, and an industry “that has barely changed in 100 years”.

“Many homes and office spaces are using AC units that are veritable dinosaurs that use more energy than they need, cost more than they should and only perform efficiently on the hottest day of the year,” he said.

Mr Ringwaldt said every degree that a thermostat is raised or lowered can increase cooling bills by about 5 per cent, and every extra star on an airconditioner’s performance rating reduced running costs by up to 10 per cent.