Running costs are one of the biggest concerns we hear from Sydney homeowners. The short answer: it depends on the system size, how often you run it, and your electricity rate. Here’s how to work it out.

The Simple Formula

Cost per hour = System capacity (kW) × Electricity rate ($/kWh) × Hours of use

In Sydney, electricity rates are typically $0.28–$0.35 per kWh for residential customers. A 3.5kW split system running 8 hours a day costs approximately: 3.5 × $0.30 × 8 = $8.40 per day, or roughly $250/month if run daily all winter.

Tips to Reduce Running Costs

  • Set the thermostat to 20-21°C for heating — every degree higher adds about 10% to running costs
  • Clean the filter monthly — a clogged filter forces the system to work harder
  • Use timer settings — heat the home before you arrive, not all day
  • Close doors and windows — don’t try to heat the whole house if you’re only in one room
  • Service annually — a well-maintained system uses 15-20% less energy

Inverter vs Non-Inverter

All new split systems sold in Australia are inverter models, which are 30-50% more efficient than older non-inverter systems. If your system is more than 10 years old, replacing it could cut your running costs significantly.

Call Jim on 0416 931 871 if you want advice on upgrading to a more efficient system.