"It depends on the size of the house, the wattage and the BTUs," said Eric Goranson, a Seattle-based designer and home renovation expert who hosts Around the House, a podcast and nationally syndicated radio show. "But the average monthly cost for most people is anywhere from $70 to $144 a month in the summer."
This means an AC unit could cost you from $5.17 to $5.94 per day to run. Or about $155-$178 per month you're running it. Let's say you still have an ideal home setup, but a home that's a little bit less than the size of the average home – around 1900 square feet.
Heating, Ventilation, and Air Conditioning (HVAC) systems are what keep you warm in the winter, cool in the summer, and comfortable all year long. In the process of creating this warm or cool air, your HVAC systems consume energy. This ends up having a very big impact on your monthly energy bills.
Air conditioners can cost anywhere between $0.32 and $1.87 to run per hour depending on the type and where you live. Investing in one or more fans for your home can be a great idea to keep your cooling costs down this summer. The upfront cost may be a bit higher but it'll pay itself in no time.
How much does air-conditioning cost to use? On average, an air conditioner costs between $0.06 and $0.88 per hour to use.
When You Run Your AC All Day, Temperature Is Everything. Yes, we have said that it is usually cheaper to keep your air conditioner on all day, but this is only true if you have it set to the right temperature. This method works when you keep it at a higher temperature (albeit lower than however hot it is outside).
With an average cost of $0.175 per kilowatt-hour of electricity in May 2024, according to the US Bureau of Labor Statistics, running the air conditioner adds an average of $437.50 to Americans' utility bills each year.
Air conditioner usage varies based on the size of your AC. However, generally speaking, a central air conditioner will consume between 3000 and 3500 watts per hour. While window units use between 900 and 1440 watts per hour, portable units consume between 2900 and 4100.
Let us now calculate the AC power consumption using an example. For example, there is a branded 1.5 kW AC that runs 8 hours per day. As a result, the total power consumption of that air conditioner will be 1.5 * 8 * 30 =360 units per month.
Sixteen percent of the rate increases in California have come from the state's efforts to protect the grid against wildfires. Colorado, Texas, Hawaii, and Oregon have also seen significant wildfires in recent years that will likely push future bills higher.
Well, it depends. After all, turning the AC on and off costs more initially. However, leaving your AC on all day consumes more energy and adds wear and tear to your system, which may cost you more money for repairs in the long run.
Central AC is a whole-home cooling system wherein the air is cooled in one location and circulated throughout to/from rooms with fans and through ductwork. Typically, a central AC system uses 3,000 to 5,000 watts per usage hour (running on the cool setting).
It's normal for an AC to run for multiple hours per day. However, there is a difference between keeping your AC on throughout the day and the compressor running all day. Once your space reaches your desired temperature, your AC system, or more specifically, the compressor, should stop running automatically.
A more moderate setting like 24°C (75.2°F) can achieve comfort with reduced electricity usage.
Heating and cooling: 45-50%
The largest electricity consumer in the average household is your heating and cooling appliance. By a long shot. Central air conditioners and heaters use tons of energy in order to keep your home set to the right temperature.
What costs the most on your electric bill? Heating and cooling are by far the greatest energy users in the home, making up around 40% of your electric bill. Other big users are washers, dryers, ovens, and stoves. Electronic devices like laptops and TVs are usually pretty cheap to run, but of course, it can all add up.
The Lennox Energy Calculator indicates that upgrading your 10 SEER air conditioner to a mid-priced 16 SEER model could save you 38% on your electricity expenses each year!
Average New AC Unit Costs
The average cost of installing a new central air conditioner in 2024, including equipment and labor costs, is $5,750 for a 3-ton unit in a 2,000-square-foot home. On average, a new AC unit cost will fall between $3,300 and $7,800.
Best AC Temperature Settings While You Are Home
As you consider the most comfortable room temperature for your lifestyle and family, keep in mind that for each degree that you set your thermostat above 72 degrees, you can save up to 3% on your energy bill.
According to the Department of Energy1, 78° Fahrenheit is the sweet spot for air conditioners to balance energy savings and comfort when people are at home and need cooling.