How to Save Money on Air Conditioning

As summer approaches, many homeowners are bracing themselves for the inevitable rise in energy bills due to air conditioning. With sweltering heat and humidity, air conditioning becomes a necessity rather than a luxury in many regions. However, there are several ways to save money on air conditioning without sacrificing comfort. By adopting efficient strategies and making informed choices, homeowners can effectively cool their homes without breaking the bank.

One crucial aspect of managing air conditioning expenses involves selecting the right energy-efficient system for your home. Proper installation and maintenance play a vital role in optimizing the air conditioner’s performance, leading to reduced energy consumption. Additionally, smart temperature management, such as utilizing programmable thermostats, as well as enhancing natural air circulation, can significantly lower energy bills.

Key Takeaways

  • Opt for an energy-efficient air conditioning system for increased savings
  • Ensure proper installation and regular maintenance to improve system performance
  • Implement smart temperature management and natural cooling strategies to lower energy consumption
Air Conditioner

Choosing an Energy-Efficient Air Conditioning System

When looking to save money on air conditioning, selecting an energy-efficient air conditioning system is crucial. There are various types of air conditioning systems that can help you reduce energy consumption and cut costs on your energy bills. This section will discuss some of the most common energy-efficient systems available, including Central Air Conditioning, Room Air Conditioners, Ductless Systems, and Heat Pumps.

Central Air Conditioning

Central air conditioning systems are commonly used in homes and provide even cooling throughout the entire space. To choose an energy-efficient central air conditioner, look for models with a high Seasonal Energy Efficiency Ratio (SEER) rating. The U.S. Department of Energy (DoE) recommends a minimum SEER rating of 13, but higher ratings will offer better energy savings. Additionally, consider looking for an ENERGY STAR certified model, which can reduce your energy use by 20% to 50%.

Room Air Conditioners

Room air conditioners, often known as window units, are designed to cool individual rooms. When selecting an energy-efficient room air conditioner, consider the size of the space you need to cool and the unit’s Energy Efficiency Ratio (EER). A higher EER means better energy efficiency. Furthermore, look for models with the ENERGY STAR label, as they typically consume 10% less energy than non-certified air conditioners.

Ductless Systems

Ductless systems, also known as mini-split or multi-split systems, provide cooling (and often heating) to specific areas or rooms within a home. These systems are generally more energy-efficient than traditional central air conditioning systems because they allow for individual temperature control and eliminate energy loss through ducts. To ensure that you choose an energy-efficient ductless system, opt for one with an inverter technology and a high SEER rating.

Heat Pumps

Heat pumps offer a versatile and energy-efficient alternative to traditional air conditioning systems, as they can provide both heating and cooling. They work by transferring heat from the air outside your home to the air inside during summer and reversing the process in winter. When selecting a heat pump, look for models with a high SEER rating and the ENERGY STAR certification. Additionally, consider an air-source heat pump, as they function similarly to air conditioners in cooling mode.

By considering the outlined factors and selecting an appropriate energy-efficient air conditioning system, you can ensure that you stay comfortable while minimizing your energy consumption and costs.

Proper Installation and Maintenance

Proper Insulation

Proper insulation is essential for energy efficiency and reducing energy consumption. Insulating the walls, floors, and ceilings can help keep the heat outside during the summer months and maintain a comfortable indoor temperature. In addition, insulation also reduces the workload on the air conditioning system, allowing it to run more efficiently. To ensure maximum effectiveness, make sure the insulation material has the appropriate R-value for your home’s climate and construction.

Sealing Air Leaks

Sealing air leaks is another important step in improving energy efficiency and reducing energy consumption. Air leaks occur in various areas of the house, such as windows, doors, and the attic. To seal these leaks, use caulk or weatherstripping where needed. Caulking should be used on stationary cracks and gaps, while weatherstripping is ideal for sealing moving parts.

Attic entrancesCaulk or weatherstrip

Addressing these air leaks will help maintain a consistent indoor temperature and reduce the strain on your air conditioning system.

Regular Maintenance

Performing regular maintenance on your air conditioning system is crucial for keeping it functioning efficiently. This includes tasks such as:

  • Replacing air filters regularly: Dirty air filters can restrict airflow and force the system to work harder than necessary. It’s recommended to replace the filters at least every three months or more frequently if needed.
  • Cleaning the coils: The condenser and evaporator coils should be cleaned periodically to remove dirt and debris. This helps in maintaining optimal heat exchange and reducing energy consumption.
  • Checking the refrigerant level: Ensuring the refrigerant level is neither too high nor too low is essential for efficient cooling performance.
  • Inspecting the ductwork: Regularly inspect and seal any leaks in the ductwork to improve energy efficiency and reduce strain on the air conditioning system.

By following these proper installation and maintenance tips, you can significantly improve your air conditioning system’s energy efficiency and reduce energy consumption, ultimately saving money on your AC bill.

Smart Temperature Management

Programmable Thermostats

Programmable thermostats are an effective tool for saving money on your air conditioning costs. These devices allow you to set specific temperature schedules, helping to maintain an optimal level of cooling efficiency. By setting your thermostat a few degrees warmer, you can experience a 1 to 3 percent savings in your energy bill1. This can amount to roughly $180 a year2.

Smart Thermostats

Smart thermostats offer the next level of temperature management. Similar to programmable thermostats, they allow users to create customized temperature schedules. However, smart thermostats boast additional features, such as adaptive learning and remote control through an app, further enhancing energy savings.

These “learning” thermostats can analyze usage patterns and optimize temperature settings accordingly, ensuring your home remains comfortable while reducing energy consumption. The remote control capability also provides the benefit of adjusting your AC settings when away from home, allowing for even greater flexibility and efficiency.

Smart Thermostat

Adjusting Temperature Settings

For optimal savings, consider making slight adjustments to your thermostat’s settings. During warmer seasons, begin by setting the thermostat at 78 degrees Fahrenheit when you’re home3. When you’re away or sleeping, aim for a temperature that’s at least 7 degrees warmer4. In cooler seasons, follow similar principles by lowering the thermostat by a few degrees when you’re away or sleeping.

Implementing these simple adjustments not only reduces energy consumption but also contributes to significant savings on your cooling bills.


  1. EPA report on thermostat savings. 
  2. Trane®, “How Do Smart Thermostats Save You Money?” 
  3. Energy Saver tips on optimizing thermostat temperature. 
  4. Temperature management recommendations for energy savings. 

Optimizing Air Circulation

Ceiling Fans

Ceiling fans are a great way to optimize air circulation, keeping your home cooler and reducing the need for constant air conditioning. By running a ceiling fan on a low setting, you can create a gentle breeze that circulates the cool air throughout the room. This helps in preventing the cool air from settling near the floor and the hot air from rising to the ceiling. Using ceiling fans in conjunction with your air conditioning system can significantly lower your energy bill.

Portable Fans

Portable fans provide flexibility and cost-effective options for enhancing air circulation in specific areas of your home. When strategically placed, these fans can help distribute the cool air from your air conditioning vents more evenly throughout the room. Additionally, portable fans can be used to create cross-ventilation by directing the airflow toward open windows or doors, thereby promoting evaporation and reducing the indoor temperature. Remember to turn off portable fans when not in use to save energy.


Proper ventilation is crucial for maintaining good air circulation, which can ultimately contribute to a more comfortable and energy-efficient home. To optimize ventilation, consider the following:

  • Open windows strategically: Open windows on opposite sides of a room or your home to create cross ventilation. This allows the cool outdoor breeze to enter and push warm air out, promoting a natural cooling effect.
  • Clean and maintain AC vents: Regularly inspect and clean your air conditioning vents to ensure they are free from dust, debris, and obstructions. This will help your AC system work more efficiently and promote better air circulation.
  • Use exhaust fans: Install exhaust fans in areas with high humidity, such as bathrooms and kitchens. These fans help remove excess moisture from the air, making it easier for your air conditioner to cool the space.

By focusing on optimizing air circulation through the use of ceiling fans, portable fans, and ventilation, you can create a more comfortable living environment while reducing your reliance on your air conditioning system and thus, saving money on your energy bill.

Natural Cooling Strategies

Window Treatments

One of the most effective ways to keep a home comfortably cool is by utilizing window treatments. Properly chosen and installed blinds, curtains, and window films can help block out the sun, reducing the amount of heat entering your home. For example, consider installing reflective window films on your windows, as they can help keep your home cooler by reflecting the sun’s rays. Additionally, close your blinds and curtains during the hottest part of the day to prevent sunlight from heating up your living spaces. Windows and doors can be further insulated with weather stripping to minimize heat transfer and air leaks.

Shading with Trees and Awnings

Strategic placement of trees, awnings, and shade structures around your home can significantly contribute to energy savings on air conditioning costs. Planting leafy trees around the outside of your home will help block the sun and keep your house cooler. Most heat that accumulates inside a house comes directly from the sun shining onto the roof and walls, so trees that cast shade can have a profound impact on indoor temperatures. In addition to trees, awnings can be installed over windows and doors to provide shade and further reduce heat transfer.

Outdoor Grilling

A simple yet effective way to save money on air conditioning is by cooking outdoors with an outdoor grill. Using ovens and stovetops to prepare meals indoors can generate considerable heat, which will then require additional energy to cool down. By opting to grill food outside instead, the heat generated by cooking will be dispersed in the open air, reducing the need for air conditioning inside your home. This natural cooling strategy not only lowers energy costs, but it also provides a pleasant opportunity to enjoy the outdoors and make the most of warm weather.

Reducing Heat and Humidity

Insulating Your Home

Proper insulation is a key factor in maintaining a comfortable indoor temperature and reducing energy usage. By insulating the walls, as well as the attic and basement, homeowners can trap cool air inside while keeping hot air out. This will lessen the demand on air conditioning systems and help to decrease electricity consumption. Installing attic fans can also aid in ventilating the space and expelling hot air, thereby enhancing the cooling effect.

Sealing Ducts

Air leaks in the ductwork can significantly contribute to energy loss and higher electricity bills. Sealing ducts ensures that the cool air generated by your heat pump or air conditioning system is efficiently distributed throughout the house. Homeowners can use mastic tape or aerosol-based sealant to close up any gaps or cracks in their ducts, reducing air leaks and promoting better energy efficiency.

Managing Humidity

Humidity plays a crucial role in determining the overall comfort of a home. High humidity can exacerbate heat and make it feel even hotter inside. Integrating dehumidifiers can help regulate indoor humidity levels, creating a more pleasant and energy-efficient environment. Additionally, consider utilizing exhaust fans in moisture-intensive areas like bathrooms and kitchens to expel excess humidity and discourage mold growth. Addressing humidity in conjunction with temperature management can provide a more comprehensive solution for reducing air conditioning expenses and energy usage, ultimately supporting efforts to combat climate change.


Incorporating effective ways to save money on air conditioning while maintaining a comfortable indoor environment is crucial, especially during hot summer months. By making a few simple adjustments to maintain temperature and improve energy efficiency, households can significantly reduce cooling costs.

One of the primary methods to achieve this goal is to ensure that the house is well-insulated, preventing cool air from escaping and hot air from entering. This can be done by sealing gaps around windows and doors, and upgrading insulation in the walls and ceilings.

Additionally, using natural shading methods such as planting leafy trees around the outside of the home can block direct sunlight and keep the house cooler. Installing energy-efficient window treatments, like curtains or blinds, can further regulate indoor temperature by minimizing heat gain during the day.

Regular maintenance of the air conditioning unit is essential to keep it functioning efficiently. This includes cleaning or replacing air filters, inspecting ducts for leaks, and ensuring the condenser and evaporator coils are clean and functioning properly. Investing in a high-efficiency air conditioner with an energy efficiency ratio (EER) of 12 or higher can lead to long-term savings on electricity bills.

Optimizing thermostat usage can also contribute to staying cool and saving money. Using programmable thermostats or smart home systems to regulate temperature while away from home can prevent unnecessary energy consumption.

By implementing these strategies, households can effectively balance the need for a comfortable indoor environment with the desire to save money on air conditioning costs. This not only benefits the occupants but also contributes to a greener, more sustainable future.

Frequently Asked Questions

What is the most energy efficient air conditioner?

The most energy efficient air conditioners are typically those with a higher SEER (Seasonal Energy Efficiency Ratio) rating. These units consume less power and provide better cooling performance compared to models with lower SEER ratings. Look for air conditioners with a SEER rating of at least 14 for optimal efficiency.

How can I reduce my AC bill?

There are several ways to reduce your AC bill. Some strategies include changing or cleaning the air filter regularly, using ceiling fans to circulate air, closing drapes or blinds during the hottest part of the day, and setting the temperature a few degrees higher when leaving the house. Additionally, remember to perform routine maintenance to keep your air conditioner in good condition and ensure it runs efficiently.

What are the best tips for energy saving aircon?

To save energy while using your air conditioner, follow these tips:

  1. Clean or replace the air filter regularly to avoid airflow issues and maintain efficiency.
  2. Use a programmable thermostat to automatically adjust the temperature based on your schedule.
  3. Seal any drafts around windows or doors to prevent cool air from escaping.
  4. Keep the outdoor unit clean and unobstructed to ensure proper airflow.
  5. Use ceiling fans to circulate cool air, reducing the load on your air conditioner.

What temperature should I set my air conditioner in summer?

During the summer, it’s recommended to set your air conditioner around 78 degrees Fahrenheit (25.5 degrees Celsius) while you’re at home, and around 82-85 degrees Fahrenheit (28-29.5 degrees Celsius) when you’re away.

Is it more cost-effective to keep the AC on all the time?

While it may seem counterintuitive, it is generally more efficient to leave your air conditioning on at a consistent temperature while you are home. Constantly turning the system off and on can cause more strain and reduce the equipment’s overall lifespan. However, remember to set the temperature higher when you aren’t home to save on electricity.

What’s the cheapest way to run an air conditioner?

The cheapest way to run your air conditioner is by ensuring it is well-maintained and operating efficiently. Regularly clean or replace air filters, schedule routine maintenance, and use a programmable thermostat to minimize energy consumption. Additionally, using ceiling fans, closing blinds, and sealing drafts can help reduce the workload on your AC, resulting in lower operating costs.

Kevin Martin

Kevin is an ambitious entrepreneur that is obsessed with all things related to finance. From a young age, Kevin has always been involved with side hustles ranging from online selling to freelance work. Over the years, Kevin graduated from side hustles and started launching multiple online and offline businesses. Kevin is a serial entrepreneur who loves starting new businesses and exploring all things related to business and finance. He is constantly looking for new ways to save money, invest money, and create income streams.