Air conditioning installation costs between $1,000 to $8,000. The final cost depends on the type of system, size of the house, and complexity of the job.
The biggest price difference comes from whether you choose a split system or ducted air conditioning unit. Costs also increase as the number of bedrooms increases, since larger homes need higher-capacity air conditioning systems.
This blog will discuss the costs of split vs ducted air conditioners, costs by home size, costs by unit size and brand, and more.
Split System Vs Ducted Aircon: Which is Cheaper to Install?
Split system air conditioners are cheaper to install than ducted systems. A standard split system unit costs between $1,000 to $2,000, while a ducted air conditioning installation can cost up to $8,000. The key difference in split system vs ducted aircon installation is scale and complexity.
Split air conditioning systems suit smaller homes or single rooms because installation is quick and requires less ductwork. They are popular for apartments, townhouses, and 2- to 3-bedroom homes where targeted cooling is enough.
Ducted air conditioning systems cover the entire property with concealed ducts, which makes them more expensive to install. They are best suited for larger homes with 4 or more bedrooms where full-house cooling is required.
Air Conditioning Cost by Home Size
The table below shows the average installation costs for different home sizes in Melbourne:
| Home Size | System Type | Average Cost Range |
|---|---|---|
| 1 Bedroom Home | Split System | $1,000 to $2,500 |
| 2 Bedroom Home | Split System | $2,000 to $3,500 |
| 3 Bedroom Home | Split or Ducted | $3,500 to $6,000 |
| 4 Bedroom Home | Ducted System | $6,000 to $8,000 |
Air conditioning installation costs increase as the number of bedrooms in a home goes up. A 1-bedroom and 2-bedroom home needs a smaller split system, while 3-bedroom and 4-bedroom homes require a full ducted setup.
Cost by Unit Size and Brand
Here are the air conditioning installation costs by unit size and brand:
Daikin
Daikin split system air conditioners cost between $900 to $1,600 for small 2.5kW to 3.5 kW units, while 4.5kW and 5.5kW models cost $3,000 to $4,500. Ducted air conditioning systems cost $8,000 to $12,000 for small single-storey homes, while larger properties require higher capacity systems that cost up to $18,000.
Mitsubishi
Mitsubishi split system air conditioners cost $1,600 to $2,200 for small 2.5kW to 3.5 kW units, while 4.5kW and 5.5kW models cost $2,500 to $3,500. Ducted air conditioning systems cost $9,000 to $12,000 for small single-storey homes, while larger properties require higher capacity systems that cost up to $15,000.
Panasonic
Panasonic split system air conditioners cost $1,800 to $2,200 for small 2.5kW to 3.5 kW units, while 4.5kW and 5.5kW models cost $3,000 to $3,500. Ducted air conditioning systems cost $10,000 to $13,000 for small single-storey homes, while larger properties require higher capacity systems that cost up to $15,000.
Fujitsu
Fujitsu split system air conditioners cost $1,700 to $2,000 for small 2.5kW to 3.5 kW units, while 4.5kW and 5.5kW models cost $2,500 to $3,500. Ducted air conditioning systems cost $10,000 to $15,000 for small single-storey homes, while larger properties require higher capacity systems that cost up to the high teens.
Electrical Upgrade Requirements
Split system air conditioners require a dedicated circuit from the switchboard. Ducted units require a switchboard upgrade and higher-capacity wiring to handle the increased load.
These upgrades add $800 to $1,500 to the installation and must be completed by a licenced electrician for compliance and safety.
Rebates and Energy Efficiency Incentives
Victorian rebates reduce air conditioning installation costs by $210 to $8,000 through the Victorian Energy Upgrades (VEU) program. The discounts are applied at the point of sale by an accredited provider.
Non-ducted reverse-cycle systems (3 to 9 kW) attract $210 to $490 rebates but require a $200 minimum customer contribution. Ducted or multi-split installations receive rebates up to $3,290, with a $1,000 minimum contribution.
Replacing a gas ducted heater with an efficient reverse-cycle system can yield rebates up to $8,000.
