How much does an air conditioning cost in Melbourne?
Melbourne's notoriously variable climate — where you can genuinely experience four seasons in a day — makes air conditioning a year-round investment rather than a summer luxury. Most Melbourne households need both cooling and heating, which is why reverse-cycle systems dominate the market. As of 2026, installation costs range from $1,500–$4,500 for a split system (supply and install) to $8,000–$18,000+ for a ducted reverse-cycle system.
Melbourne's summer extremes (40°C+ heatwaves are becoming more frequent) combined with cool winters (average July minimums of 6°C) mean a reverse-cycle system does double duty, potentially replacing both an old gas heater and a window air conditioner. This makes the upfront investment more cost-effective than it first appears — you're buying heating and cooling in one unit.
We've compiled pricing from Melbourne HVAC installers, manufacturer data, and the Victorian Energy Upgrades program to give you the most comprehensive breakdown of air conditioning costs in Melbourne for 2026. All prices include the unit and standard installation.
| Service | Low | High | Average |
|---|---|---|---|
| Split system — supply + install (2.5kW) | $735 | $1,575 | $1,155 installed |
| Split system — supply + install (5kW) | $1,260 | $2,310 | $1,785 installed |
| Split system — supply + install (7kW+) | $1,890 | $3,675 | $2,625 installed |
| Multi-split system (2–3 heads) | $3,150 | $7,350 | $4,725 installed |
| Ducted system (small home) | $5,250 | $10,500 | $7,875 installed |
| Ducted system (large home) | $10,500 | $21,000 | $14,700 installed |
| Service / clean (split) | $84 | $210 | $137 per unit |
| Service / clean (ducted) | $158 | $368 | $231 per system |
| Re-gas | $210 | $525 | $315 per unit |
| Old unit removal | $105 | $368 | $210 per unit |
| Thermostat / controller upgrade | $210 | $630 | $368 installed |
| Emergency repair | $210 | $630 | $368 per visit |
Prices include GST. Based on Melbourne metro area, Feb 2026. Outer suburbs may vary.
Melbourne's diverse housing stock and sprawling geography create significant variation in installation costs. Your property type, roof access, and electrical infrastructure all affect the final price.
Inner Melbourne
Fitzroy, Carlton, South Yarra, Collingwood. Victorian terraces and converted warehouses with limited roof cavities and heritage restrictions. Ducted systems are often impractical — multi-split or individual splits are the go. Strata approval required for apartment buildings. Narrow laneways and limited outdoor space make compressor placement tricky. Some heritage-listed properties require council approval for visible outdoor units.
Eastern & South-Eastern Suburbs
Hawthorn, Box Hill, Glen Waverley, Dandenong. Predominantly 1950s–80s brick veneer with adequate roof cavities for ducted systems. Standard electrical infrastructure, good driveway access. This is the sweet spot for ducted installations — enough roof space, manageable pipe runs, and competitive local installer rates. Many homes in this belt still have aging evaporative cooling systems ready for a reverse-cycle upgrade.
Western & Northern Growth Corridors
Werribee, Craigieburn, Tarneit, Point Cook. Modern homes with flat rooflines, good insulation, and pre-wired for air conditioning. The most cost-effective area for both split and ducted installations. Many new estates have builder-installed ducted systems, so replacement rather than new installation is common — typically $2,000–$5,000 cheaper than a fresh install. Extreme western suburbs experience higher temperatures than inner Melbourne, making adequate capacity sizing critical.
Bayside & Mornington Peninsula
Brighton, Frankston, Mornington. Coastal salt air means specifying coastal-rated outdoor units is important for longevity. Mix of older homes and newer developments. Larger properties on the Peninsula may need more powerful ducted systems, pushing costs higher. The moderate coastal climate means cooling demands are lower than inner Melbourne, potentially allowing a smaller system than you'd expect.
Here's what common air conditioning installations cost in Melbourne in 2026, including the unit and standard installation. Melbourne prices generally sit 5–10% below Sydney for equivalent work.
Single reverse-cycle split — bedroom or study (2.5–3.5kW)
Unit ($650–$1,400) plus standard back-to-back installation ($600–$900). Popular brands: Mitsubishi Electric, Daikin, Fujitsu, Panasonic. Melbourne's cool winters mean you'll use the heating function extensively — choose a model with a good heating efficiency rating (COP of 4.0+ is excellent). A dedicated 15-amp circuit is required; if your switchboard needs upgrading, add $300–$800.
Large reverse-cycle split — living area (7–9kW)
Larger units require a dedicated 20-amp circuit and heavier installation. Running costs for heating a living room through Melbourne winter average $1.50–$2.50/hr — still cheaper than most gas ducted heaters and significantly more efficient than electric bar heaters. Floor-standing or console models ($3,000–$5,000 installed) work better in rooms with limited wall space.
Multi-split system — 2–4 rooms, one outdoor unit
One outdoor compressor connecting to 2–4 indoor units. A 2-head system typically costs $3,800–$5,000, a 3-head system $5,000–$6,500, and a 4-head system $6,500–$8,500. This is a popular choice for Melbourne townhouses and apartments where ducted isn't feasible. Each indoor unit can be set to a different temperature, giving you zone control without ductwork. Installation takes 1–2 days depending on pipe run complexity.
Ducted reverse-cycle — whole home, 3–4 bedrooms
Includes indoor unit in roof cavity, outdoor compressor, ductwork, zoning (usually 2–4 zones), thermostat, and commissioning. A standard 3–4 bedroom single-storey home with accessible roof space typically falls in the $10,000–$13,000 range. Zoning adds $1,500–$3,000 but is essential in Melbourne — you'll want to heat bedrooms at night without heating the living areas, and vice versa during the day. Two-storey homes or complex layouts can reach $16,000–$20,000.
Evaporative cooling to reverse-cycle upgrade
Many Melbourne homes have aging evaporative cooling systems that provide no heating and struggle in humid conditions. Removing the old evaporative unit ($300–$600), patching the roof penetration ($200–$500), and installing a ducted reverse-cycle system provides year-round comfort. If the existing evaporative ductwork is the right size and in good condition, some installers can repurpose it — saving $2,000–$4,000 on new ductwork. However, evaporative ducts are often larger than refrigerated ducts, so this isn't always feasible.
System type
Split systems are cheapest to install. Multi-splits serve multiple rooms from one outdoor unit. Ducted systems are the most expensive but provide whole-home climate control.
Capacity (kW)
A bedroom needs 2.5kW, a living room 5–7kW, and a large open-plan area 7–10kW. Undersizing means the unit works harder and costs more to run.
Installation complexity
Back-to-back installs (indoor unit on the other side of the wall from the outdoor unit) are cheapest. Long pipe runs, multi-storey installs, and roof-mounted outdoor units cost more.
Electrical requirements
Larger units (7kW+) may need a dedicated circuit or switchboard upgrade, adding $200–$800.
Brand
Budget brands (Kelvinator, Hisense) cost 30–40% less than premium brands (Daikin, Mitsubishi Electric) but may not last as long or be as efficient.
Time of year
Installers are busiest in summer and winter. Spring and autumn installs may be cheaper and faster.
Air conditioning installation in Victoria requires specific licensing. Using unlicensed installers voids warranties, risks gas leaks, and can result in fines.
ARC licence: Mandatory for anyone handling refrigerant gases. Verify at arctick.org before hiring. An unlicensed installer cannot legally commission a split or ducted system — the refrigerant connection is a controlled process with environmental and safety implications.
Electrical licence: All electrical work must be completed by a registered electrical contractor, with a Certificate of Electrical Safety lodged with Energy Safe Victoria. This covers dedicated circuits, isolator switches, and thermostat wiring.
Victorian Energy Upgrades (VEU) program: Victoria offers rebates for energy-efficient heating and cooling under the VEU scheme. Replacing an old gas heater or inefficient AC with a high-efficiency reverse-cycle system can attract rebates of $300–$1,000+, depending on the system size and your energy retailer. Your installer should be able to process the VEU paperwork — if they can't, they may not be accredited under the program.
Noise regulations: The Environment Protection Act 2017 (Vic) requires that air conditioning noise doesn't unreasonably affect neighbours. Modern inverter units are very quiet (typically 45–55dB outdoor), but placement matters — keep outdoor units at least 1–2 metres from boundary fences and away from neighbours' bedroom windows. Some councils have specific setback requirements, particularly in heritage areas.
Melbourne homeowners increasingly face the question: should I keep my gas heater or go all-electric with reverse-cycle? The economics are shifting decisively toward electric.
Reverse cycle is 3–5× more efficient than gas heating. A modern reverse-cycle system has a COP (Coefficient of Performance) of 3.5–5.0, meaning for every $1 of electricity, you get $3.50–$5.00 of heat. Gas heaters convert roughly $0.90 of energy per $1 of gas. With Victorian gas prices rising and electricity prices stabilising (especially with solar), reverse-cycle heating is now cheaper to run than gas in most scenarios.
Solar integration: A 6.6kW solar system ($4,800–$7,500 installed after the Solar Victoria rebate of up to $1,400) can power your reverse-cycle heating during winter daylight hours and cooling in summer. Melbourne averages 3.6 peak sun hours daily in winter — enough to offset 50–70% of daytime heating costs. Pair with a battery ($8,000–$14,000, with rebates up to $2,950 from Solar Victoria) and you can run your AC into the evening hours on stored solar power.
The gas disconnection calculation: If a reverse-cycle system replaces your gas heater and you also switch to a heat pump hot water system ($3,000–$5,000 installed with rebates), you may be able to disconnect gas entirely — saving $400–$600/year in gas supply charges alone, before any energy savings. This is becoming an increasingly popular move in Melbourne, supported by the Victorian Government's electrification incentives.
Running cost comparison: Heating a typical 3-bedroom Melbourne home through winter costs approximately $800–$1,200/year with gas ducted heating, versus $350–$600/year with an efficient reverse-cycle ducted system. Add solar and the reverse-cycle cost drops to $150–$350/year. The payback period on the upgrade — even factoring in the new AC system — is typically 4–7 years.
Our Methodology
Prices on this page are compiled from publicly available cost guides, tradie marketplaces (ServiceSeeking, hipages, Airtasker, Service.com.au), industry body data (HIA, Master Builders), and individual tradesperson websites across Australia. We cross-reference ranges from multiple sources and adjust for city-specific cost differences based on advertised rates, salary data, and cost-of-living indicators. Our guides are independently produced — we don't employ tradespeople and have no financial incentive to inflate or deflate prices. All prices are estimates and will vary based on your specific job. Always get at least 3 quotes. Last reviewed February 2026. Read our full methodology →