How to Save Money on Aircon Prices in Singapore

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Save on aircon prices in Singapore

Choosing and buying the right air conditioning (aircon) unit in Singapore can save you big money on your monthly utilities bills.

With Singapore’s hot and humid weather, some would argue that air conditioning at home is a necessity.  These days, the cost of installing an aircon has decreased, but you can always get a better deal and save money on your monthly utility bills. Here’s a quick guide on how to save money on aircon prices in Singapore:

1. Compare aircon prices from different brands

Home contractors often receive a commission from selling a particular brand. This is as true for some brands of furniture as it is for air-conditioning. This isn’t always bad: just because they get a commission, it doesn’t mean the contractor is just out for your money (their reputation is also at stake).

Nonetheless, it pays to look around. Don’t just take the contractor’s recommendation at face value — visit different distributors, and see if there are cheaper options on aircon prices in Singapore.

Also remember that not all contractors are equally fair – some may choose to recommend a brand for which they receive a higher commission.

large hall interior

2. Match the BTU rating to the room size

Air conditioners come with a British Thermal Unit (BTU) rating. The larger the size of the room, the higher the BTU of the air-conditioner should be.

Small rooms (150 square feet or below) will require a unit with around 6,000 BTUs. This is generally appropriate for a single bedroom. For larger rooms (up to 350 square feet), you will need a unit with around 9,000 BTUs. This is typical for most living rooms.

Very large rooms (500 square feet or above) will require something between 10,000 to 15,000 BTUs.

If you use a powerful air-conditioner in a small room (e.g. 14,000 BTUs for a 150 square foot bedroom), it will cool the room much faster. But the temperature will fall much faster than the humidity levels,  causing the walls to feel damp, and it can damage wallpaper or warp wooden floors over time.

If you use an underpowered air-conditioner, you will run up higher bills by having to set the air-conditioner on full power, for a longer time. You will also wear out the unit faster.

If you intend to install air conditioning in a kitchen, increase the required BTU by 4,000. Note that it is not advisable to install air conditioning in a kitchen – this will trap smells, and the unit will require more constant servicing.

Of course, the higher the BTU the more expensive the unit tends to be. So match the BTU of the unit to the room size, in order to save cost on air con prices.

3. Don’t bother using silenced units for large rooms

Some air-conditioners are more expensive because you don’t hear the signature “drone” when it’s switched on.

This is only a feature worth paying for if you are air-conditioning a small bedroom. For master bedrooms (200 square feet or more) or living rooms, the silent running is irrelevant. In large spaces, you will probably not notice the sound anyway.

4. Match your usage to the right energy efficiency 

The air-conditioner’s Energy Efficiency Rating (EER) measures how efficiently it uses electricity. The base number is 10 — this is a legal requirement.

For every point above 10, the power cost will be about 10 per cent lower over a month of use. This translates to lower electricity bills, but often a higher initial cost. Is it worth the trade-off?

That depends on how often you use the air-conditioner.

If you only turn on the air-conditioner two or three times a week, you are not likely to see much savings from a higher EER. You might be able to save on cost by getting a cheaper, less efficient unit.

If you use the air-conditioner every night however, you will probably save more with an efficient unit in the long run.

Alternatively, you may want a higher EER to be more eco-friendly.

small bedroom with blue wall

5. Get an extended warranty for bedroom units

If you will use the air conditioner every night, it’s a good idea to buy the extended warranty. This normally costs under S$200. A leaking air-conditioner can cost you almost that much to fix anyway, and a damaged compressor can run up costs of around S$600.

You may want to skip extended warranties on living room units if you use them less frequently (and can live without them if they spoil).

Note that the warranty is almost always from the seller, not the manufacturer. So if the seller closes shop, you may be left in the lurch. Get extended warranties only from proven companies.

6. Use the right credit card to buy aircon units

Buying an aircon unit costs several thousand dollars at least, so use the right cashback or rewards credit card to earn cashback, rewards or air miles. Assuming the aircon costs S$3,000, here is an example of the perks you might get with three different credit cards:

Amex True Cashback Card

Citi PremierMiles Cardciti premiermiles new

HSBC Advance Credit Card

Reward Type 3% cashback for first S$6,000 spend 1.2 Citi miles for S$1 spent locally Up to 3.5% cashback with no min. spend
Rewards Earned from S$3,000 Aircon Purchase S$90 cashback 3,600 Citi miles Up to S$105 cashback

Just remember to pay in full, or else you cannot claim rewards or cashback if your account is in bad standing. You’ll also end up accumulating interest on unpaid balances on your card.

7. Use the right credit card to pay aircon bills

Save on aircon prices in Singapore with the right credit card

The OCBC 365 card offers 3% rebate on electricity bills from providers such as Senoko Energy, Sembcorp Power and Keppel Electric. You’ll need to spend a minimum of S$800 per month on your card to qualify, otherwise cashback rate falls to 0.3%.  

Note that the rebate is capped at $80 a month but that still means a hefty savings of S$960/year. Besides monthly utility bills, you can also earn rebates of 6% on dining and online delivery, 3% on telco bills, grocery shopping and online groceries and 5% on fuel.

Apply Now for OCBC 365 Credit CardThe right credit card will give you free access to airport lounges

The POSB Everyday Card earn you 1% rebate on recurring utilities bills from the SP Group and Starhub. The big plus about this card is that there’s no minimum monthly spend required so you don’t need to worry you can’t meet the target spend. But take note no cash rebates will awarded beyond the maximum spend of $100 per month.

The right credit card will give you free access to airport lounges


Read this next:

Best Credit Cards for Paying Utility Bills in Singapore
4 Credit Cards You Can Use As Your EZ-Link Card
Cashback or Rewards Credit Cards: Which is Better?
6 Credit Cards That Give Free Access To Airport Lounges

By Ryan Ong
Ryan has been writing about finance for the last 10 years. He also has his fingers in a lot of other pies, having written for publications such as Men’s Health, Her World, Esquire, and Yahoo! Finance.