How Much Does Reverse Cycle Air Conditioning Cost? [2025]

Suffering through the sweltering summer without some sort of air conditioning is miserable, but you also don’t want to freeze all winter either. Reverse cycle air conditioning is one of the most energy-smart and versatile climate control solutions for Aussie homes, providing both heating and cooling from a single system. 

Understanding the costs involved in purchasing and installing reverse cycle air conditioning will help you budget smarter and provide you with a seamless installation. Whether you're thinking about a simple split system for a single room or a larger ducted system to cool your entire home, this guide is here to help. Topics include: 

• What is reverse cycle air conditioning?

• Factors that impact reverse cycle air conditioning costs

• Reverse cycle air conditioning unit costs

• Reverse cycle air conditioning installation costs

• Choosing the right air conditioner unit

• Why is professional air conditioning installation important?

• Tips for choosing the right air conditioner installer

What is reverse cycle air conditioning?

What is reverse cycle air conditioning? All reverse cycle air conditioning systems are made to give you both heating and cooling when you need it. The difference between most systems is the capacity it has for doing this job well.

The volume of space you need to heat or cool will determine how big of a system you need and how expensive it is. There is a calculation that determines the system’s kilowatt output and the amount of space it can serve.

While the cheapest stand-alone units can only cool or heat one room, split systems have a compressor that you install on the outside of your house and a unit with a fan inside the home, making them more efficient. They can power your whole house more efficiently than a stand-alone variety.

If you need to power your whole home, you need a reverse cycle ducted air conditioning system. It’s installed in your home using a series of ducts and returns and keeps the temperature steady from room to room, and provides you with maximum comfort no matter the season.

What factors impact costs of reverse cycle air conditioners?

The final cost of your reverse cycle air conditioning system will depend on several key factors: 

• The type of unit that you need: Split systems, which consist of an indoor unit connected to an outdoor compressor, are the most affordable option, while multi-split systems that connect multiple indoor units to a single outdoor unit, cost considerably more. Ducted systems cost the most out of any reverse cycle air conditioner model

• Size and capacity of the unit: The cooling and heating capacity of your unit, measured in kilowatts (kW), directly affects the price. Smaller units for smaller rooms will naturally cost less than larger units for larger areas

• Accessibility of your home: Factors such as the distance between indoor and outdoor units will impact your final installation cost. Single story homes with easy access will cost less than multi-storey homes that need tradies to run up and down stairs

• Brand of the air conditioning unit: Budget brands might offer lower upfront costs, but premium brands like Daikin, Fujitsu, Mitsubishi, and Panasonic typically offer better energy efficiency, more features, and longer warranties.

• Electrical upgrades: If electrical upgrades are needed to support your new system, this will add further to the installation cost

How much do reverse cycle air conditioning units cost?

As mentioned above, the brand, type and energy capacity of your unit will impact the amount you need to pay. Here are some general cost estimates based on the type of unit: 

• Split system air conditioner: A split air conditioning system is cheaper than an integrated duct system, and are generally easier to install. These typically range from $600 to $2,500 depending on its size and brand

• Ducted air conditioner: Ducted systems give you more control over your temperature settings, but are pricier and require more extensive installation. These range from $5,000 to $10,000+ depending on the size of your home and the installation requirements. 

• Multi-split systems: These connect multiple indoor units to a single outdoor unit, and typically range between $2,500 to $5,000

If you’re unsure about the type of air conditioning unit you want, but know about energy requirements, here are some ballpark figures: 

• Small units (2.5kW): Suitable for bathrooms or small bedrooms up to 20m²and start at around $600

• Medium units (3.5-5kW): Suitable for standard bedrooms or offices between 30m² to 50m² in size, and range between $800 to $1,500

• Larger units (7kW+): Designed for open-plan living areas or master bedrooms up to 70m² cost between $1,500 to $2,600.

How much does reverse cycle air conditioning installation cost?

Your air conditioning unit will need to be installed by a licensed air conditioning specialist. Air conditioning installers typically charge by the hour, with costs ranging between $80 to $110 per hour. 

Simple split system air conditioners take one day to install, while the more complex units, or installations requiring additional electrical work could take two or more days. This means that you can expect to pay $600-$1,000 for a basic installation, and $1,000-$2,000 for larger, complex installations. 

Ducted systems are the most difficult to install, and will take multiple days. These can cost between between $3,000-$5,000 for labour alone, depending on the size and complexity of the system.

In addition to upfront cost, you should also consider how much it costs to run each type of system. How much you will pay in your energy bills could be a significant determining factor in which type you choose to have installed.

How to choose the right air conditioner 

You shouldn’t compromise on the capacity you need just to save money, or you’ll be very uncomfortable. Not only does the air conditioning unit have to work extra hard to keep the temperature you want, but it won’t work very well. Chances are you’ll be just as miserable as you were at the start.

It ends up being very inefficient and costs you more money in energy bills. You’ll have to replace the unit sooner because it won’t last as long, requiring even more money and making you more unhappy with your choice.

When considering what size system you need, calculate the square metres of your home, the height of the ceilings, and the number of windows you have. The bigger the house, the higher the ceilings, and the more windows you have, the less energy efficient your home is, so you need a bigger unit.

You should count on needing about 1-1.5 kilowatts per square metre of your home. Reverse cycle air conditioners are labeled with two-kilowatt values. One is for cooling, and the other is for heating. Consider both of these numbers when trying to decide what size to get for your home.

An online calculator or a professional installer can help you determine what size you need or recommend the best unit for your space. When in doubt, rely on someone who knows more about it than you do.

Why is professional air conditioning installation important?

While DIY installation may seem tempting to save costs, it’s illegal in Australia to install a unit yourself if you don’t have a valid license. Licensing requirements vary by state, but people who work with air conditioning units and handle refrigerants should also be registered by the Australian Refrigeration Council (ARC). A full Refrigeration and Air Conditioning license allows them to install any kind of unit while a restricted license authorises them to install stand-alone systems only.

Using an unlicensed installer is not only illegal, but it also risks a dodgy installation job and can void your warranty. Always verify that your installer holds a valid ARC license before proceeding with installation.

Tips for choosing the right air conditioner installer 

Choosing the right installer for your job is important for getting quality workmanship and a result that you’ll be happy with for years to come. 

You can, and should, always ask for a consultation and quote from at least 3 registered technicians so you know up front what you can expect to spend. Your best bet is to have a professional meet you at home and help you determine what you need.

When researching potential tradies, be sure to check: 

• Qualifications and experience: Always verify that your potential installer has an ARC license for handling refrigerants, an electrical license if they need to do any electrical work, and past experience with your chosen unit type 

• Get multiple quotes: We recommend getting at least 3 quotes to compare prices. Sometimes the cheapest option isn’t the best one - so make sure you’re checking that your quote contains a detailed breakdown of all costs, a clear description of the work that needs to be done, and any warranty information 

• References and reviews: Take the time to get references from your installer as well as ask any other questions you may have, as this will help you gauge their quality of work

With the right amount of research and help from a professional, you can determine what you need, how much it will cost, and how long it will take. Don’t cut any corners when it comes to size, or you won’t get the heating and cooling power you need, and pay for a licensed installer who will do it right the first time.

The easiest way to find trusted air conditioning installers is to post your job on hipages, where you can connect with verified professionals and compare quotes. All of our tradies have their own profile with ratings and reviews from other homeowners, giving you confidence in your choice.