info@acsm.net.au
With summer right around the corner, there’s no better time than now to invest in a brand-new air conditioner. However, you might be wondering just how much it might cost to get it installed.
Installation costs depend on everything from the air conditioner’s size to its style, capacity, brand, and technology. While it’s often difficult to give an exact figure, we will provide you with an industry average for some of the most popular types of air conditioning being installed in Melbourne in 2026.
From average costs to rebates, we’ll cover everything you need to know.
Please note: all costs, prices and figures in this article are estimates and should only be considered as general information. Prices may vary depending on location, brand, provider, and various other factors.
In Melbourne and regional Victoria, the cost of an air conditioning installation can range anywhere from $1,250 to upwards of $14,000. When we talk about the costs associated with the process, there are two key aspects: the price of the air conditioning system, and the cost of installation/labour.
Here’s a quick guide.
Air conditioning system prices vary considerably depending on their style. A 2.5/3 kW split system from brands like Daikin, Fujitsu, Mitsubishi, or Panasonic may have a retail price somewhere between $400-$1,200.
A Braemer ducted system, on the other hand, will have an average initial cost upwards of $2,000-$3,000. Similarly, Daikin and Panasonic ducted systems may come at a price upwards of $4,000.
The cost of the system is the first half of the final installation price. In order to find the best deal, it’s worth shopping around, doing a little research, and comparing prices from brand to brand. Of course, you can always check out the brands we prefer right here at ACSM Air.
The second half of the story is the cost associated with the installation itself. In this case, the final price can depend on:
The only way to determine the likely cost of an installation is to get a quote from your HVAC company. It is also important to note that the final price can be reduced and offset with rebates currently available in the State of Victoria; we will cover these in more detail below.
According to recent estimates from What’s The Damage, the average total installation cost for different types of air conditioning is as follows:
(Source: What’s The Damage)
Concerned that the installation might be out of your budget? The great news is that there are rebates available in the State of Victoria. Here’s a quick guide to what they are, how they work, and who’s eligible:
The following details and figures can also be found on the Energy Victoria website.
The Victorian Energy Upgrades program is available to:
Landlords and tenants should work together when planning an upgrade.
The upgrade must be an approved, high-efficiency reverse cycle air conditioner that provides heating and cooling.
Eligible systems include ducted and non-ducted models.
The product must:
If replacing an existing system, it must be more than 2 years old.
Choose an eligible upgrade and an accredited provider. They will:
You can also use your own installer, but they must work with an accredited provider before any work starts.
Getting more than one quote can help you compare your options.
Rounding things up, an air conditioning installation in Melbourne can cost anywhere from $1,250 to $14,000 (or higher), depending on the system, size, brand and installation requirements.
Typical installation costs in 2026 are:
VEU discounts may also reduce the upfront cost for eligible households and businesses. Available discounts vary according to the existing system, replacement system and capacity, with household discounts reaching up to $5,530 and business discounts reaching up to $8,820.
For an accurate price, it’s best to compare quotes from accredited HVAC providers, as installation costs can vary significantly depending on the property and system.
Ready to go ahead with an air conditioning installation? Our Melbourne-based team is always up to the task. From residential split systems to commercial air conditioning, no job is too big or too small for our talented heating and cooling technicians.
Our goal is and has always been the same. That is to be a leading provider of healthy and innovative indoor environments, helping to enhance quality of life for property owners that appreciate our customer-focused culture, with everything backed by proven processes that regularly exceed expectations.
We’re familiar with a range of major brands, including ActronAir, Braemar, Daikin, Fujitsu, Mitsubishi, and many more. Contact us now to schedule an appointment!
