How Much Does Air Conditioning Installation Cost 2025 Guide

Air conditioning is one of the biggest purchases that any homeowner or business in Australia can make. No longer just a luxury, air conditioning has become a necessity, particularly in cities where summer and winter can often see the mercury in the hundreds or below zero. Not only does air conditioning make a home more comfortable, it also makes it more energy efficient if the right system is selected. Energy efficient air conditioning often lasts much longer than standard, making it a smart investment.

If you are in the market for air conditioning, the first question on your mind is probably: how much does air conditioning installation cost? Prices for air conditioning installation will depend on the type of air conditioning system you need, the layout of your property and the degree of professional installation required. Air conditioning installation prices in larger cities such as Sydney and Melbourne are higher on average due to greater demand and extreme climate requirements.

Air conditioner installation costs in 2025 range from $600 to $30,000 depending on the type of system, including portable units, split system air conditioners, multi split systems and ducted air conditioning systems. Air conditioner installation average costs can be $529 to $706 depending on your city of residence and local living costs. Split system air conditioning installation generally costs between $1,795 and $6,000.

In this comprehensive air conditioner installation guide, you will find everything you need to know about air conditioner installation costs, including the factors that impact it and some practical advice to help you save money while getting the most effective cooling for your home or workplace.

Average Air Conditioning Installation Costs in Australia

Air conditioning installation costs for different system types vary greatly. Here is a guide to the average price ranges. Ducted systems are naturally more expensive as a result of the ductwork involved in the installation process and operation of these systems.

• Split system air conditioning installation: $1,500 – $5,000 (generally costs between $1,795 and $6,000 depending on specific requirements)
• Multi split air conditioners: $3,000 – $10,000
• Ducted air conditioning systems: $6,000 – $30,000
• Portable air conditioners: $300 – $1,000

Keep in mind that this final price includes both the air conditioning unit as well as installation costs. The final price tag will also be higher if electrical upgrades are needed to the property or if the installation is more complex because of difficult roof access or multiple storeys.

Factors Affecting Air Conditioner Installation Costs

Every property is different, and every installation process is different. Here are the main factors that will influence the final cost:

1. Type of Air Conditioning System

The biggest driver of price is the air conditioning type you choose.

• Split systems are affordable and suited to cooling individual rooms. They are particularly popular in Australia for their efficiency in cooling single spaces.
• Multi split air conditioners use one outdoor unit connected to multiple indoor units, offering efficient cooling for multiple rooms. However, they can become costly with larger homes due to the need for multiple indoor units.
• Ducted air conditioners provide whole-home coverage but require a significant investment.
• Portable units cost less but provide limited cooling capacity.
• Central air conditioning systems are less common in Australia but can be used in larger, higher-end homes or commercial properties.

2. Size of the Home

The larger the home, the greater the cooling capacity required. Larger properties usually require ducted systems or multi split systems with multiple indoor units.

3. Installation Complexity

Installation complexity can dramatically influence the final cost. Factors include:

• Retrofitting into older homes
• Multi-storey buildings requiring roof access
• Electrical upgrades for new air conditioning systems
• Placement of both indoor and outdoor units

4. Energy Efficiency

Systems with higher energy efficiency will obviously have a greater upfront cost but will make a difference to your ongoing energy bills. It is always a good idea to check the energy efficiency ratings of popular air conditioner brands to save money in the long-term. Energy efficient systems will also help avoid massive energy bills as well as lower the carbon footprint of your home.

5. Professional Installation

A professional installation from a licensed air conditioner installer accredited by the Australian Refrigeration Council (ARC) ensures compliance with safety regulations and upholds your warranty. This is an essential component of getting your air conditioning up and running and ensures that no mistakes are made which could cost you a lot of money in the long run. Professional air conditioner installation also makes sure that your system is running at maximum efficiency.

Split System Air Conditioners

A split system air conditioner is one of the most common and cost-effective types of system. As the name suggests, a split system air conditioner is made up of an indoor and an outdoor unit, with the indoor unit mounted on the wall and the outdoor unit expelling heat.

Costs

• Unit cost: $600 – $5,000 depending on brand and model
• Installation costs: $600 – $1,500
• Final cost: $1,500 – $5,000

Advantages

• Affordable and accessible option
• Efficient cooling for individual rooms
• Energy efficient systems available
• Quick installation process

Disadvantages

• Only cools a single space
• Multiple split system units are required for larger homes

Multi Split Air Conditioners

Multi split systems are another common system. They use one single outdoor unit that connects to multiple indoor units. This means that these systems are also a very good choice for efficient cooling across multiple rooms.

Costs

• Unit cost: $600 – $5,000 per indoor unit
• Installation costs: $2,000 – $5,000 depending on number of rooms
• Final cost: $3,000 – $10,000

Advantages

• Efficient cooling for several rooms
• Saves space compared to multiple split systems
• Suitable for medium-sized homes

Disadvantages

• Final cost increases with multiple indoor units
• Installation complexity may require higher labour costs

Ducted Air Conditioning Systems

Ducted systems are the most expensive, but they also provide the most extensive cooling solution. Ducted systems are made up of a single indoor unit and ductwork which channels the heated or cooled air around multiple rooms. A major advantage is the clean look, as ducted systems have no wall-mounted units to break the aesthetics of a home or office.

Costs

• Smaller homes/apartments: $6,000 – $10,000
• Average one-storey home: around $14,000
• Larger homes: $20,000 – $30,000

Advantages

• Whole-home heating and cooling
• Flexible zoning to save energy
• Aesthetic appeal with no visible wall units
• Energy efficient air conditioners with higher cooling capacity

Disadvantages

• Higher upfront cost
• Longer installation process
• Complex ducted systems require professional expertise

Portable Air Conditioners

Portable air conditioners are the cheapest, often bought for use in small apartments or as a short-term solution. Portable air conditioners can be purchased for as low as $300, but this option is often much less effective than other air conditioning systems. Portable units are a cheap but ineffective solution for most larger spaces and are much less energy efficient than other air conditioner types.

Costs

• Unit cost: $300 – $1,000
• Installation costs: None required

Advantages

• Very affordable upfront
• No installation required
• Can be moved between rooms

Disadvantages

• Low cooling capacity
• High energy bills
• Noisy compared to split systems

Central Air Conditioning System

A central air conditioning system is more common in commercial buildings or luxury residences. It is similar to ducted systems but usually larger and designed for significant spaces.

Costs

• Final cost: $15,000 – $40,000 depending on size and installation complexity

Replacement Costs for Air Conditioning

Over time, your air conditioning system will need replacement. Most systems last 10 to 15 years.

Costs Involved

• Replacement split systems: $1,500 – $5,000
• Replacement ducted systems: $6,000 – $20,000

Replacement is usually cheaper than first-time installation, as existing electricals and ducting may be reused if in good condition.

Installation Process and Timeframes

The installation process and timeframe vary depending on the air conditioning type:

• Split system installation: usually one day
• Multi split systems: 1 to 2 days
• Ducted systems: 2 to 4 days

Factors such as installation complexity, home layout, and accessibility will affect the final cost and duration.

How to Save Money on Air Conditioner Installation Costs

• Compare multiple quotes from air conditioning installersusing Trade Heroes
• Choose an energy efficient system to reduce energy bills
• Select the right air conditioning type for your home’s size and needs
• Schedule installation outside peak summer season when demand is lower

Choosing a Licensed Air Conditioner Installer

It is a legal requirement in Australia for air conditioning installers to hold an ARC licence. Always confirm: State and local regulations can affect the cost through licensing requirements and permits.

• Licence status with the Australian Refrigeration Council
• Scope of work included in the quote
• Warranty terms from both installer and manufacturer

With Trade Heroes, you can compare verified professionals and connect directly with local experts for safe, efficient air conditioner installation.

Frequently Asked Questions

How much does it cost to install a split system air conditioner?

Expect to pay $1,500 – $5,000 including the split system unit and installation costs.

What are the main factors affecting installation costs?

Air conditioning type, installation complexity, electrical upgrades, home size, and energy efficiency ratings.

Are ducted air conditioners worth it?

Yes. While they have a higher upfront cost, ducted systems provide efficient cooling across multiple rooms and add value to your home.

What is the cheapest way to install an air conditioner?

Portable air conditioners are the cheapest, but they are less efficient. A split system unit provides the best balance of cost and efficiency.

Can I install an air conditioner myself?

No. Professional installation is essential for safety and compliance. Using a licensed air conditioner installer ensures your system operates efficiently.

Conclusion

Installing air conditioning is one of the most important decisions you can make for your home or business. While the cost to install varies widely, from a few hundred dollars for portable units to tens of thousands for complex ducted systems, the right choice depends on your space, your budget, and your long term energy efficiency goals.

Split system air conditioners remain the most popular option for cooling individual rooms, while ducted air conditioning systems are the preferred choice for whole home comfort. Multi split air conditioners provide a balance between the two, and portable air conditioners are a simple entry level solution. No matter which system you choose, factors such as installation complexity, electrical upgrades, and the quality of the installer will affect your final cost.

Because air conditioning installation is a significant investment, professional installation by a licensed air conditioner installer accredited with the Australian Refrigeration Council is essential. This ensures your new air conditioning system is safe, compliant, and energy efficient.

When you are ready to move forward, always seek multiple quotes to compare air conditioner installation costs. Using Trade Heroes, you can quickly connect with trusted local air conditioning installers and make an informed choice. With the right system and expert installation, you will enjoy efficient cooling, reduced energy bills, and year round comfort for years to come.