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Systems explained

Inverter air conditionersA compressor with an accelerator, not an on-off switch.

An inverter air conditioner changes the speed of its compressor to match what the room needs, instead of running flat out and switching off. ActronAir says inverters are now the industry standard across every brand, so the units you're quoted will very likely be inverters. The question that matters more is whether the unit is the right size.

Updated 29 October 2026 · Written by the Find My Aircon team · How we check our facts

What does inverter actually mean?

Daikin compares it to a car's accelerator: the system keeps adjusting its heating or cooling output as the room temperature changes. ActronAir describes the same thing from the inside, a compressor with variable speeds that rise and fall with demand.

A fixed-speed, or non-inverter, unit works more like a light switch. ActronAir says it runs by switching the motor on or off, so it's either going full tilt or not at all.

Rinnai says every one of its current split system ranges uses inverter technology, and other brands put the word up front too. Carrier, for example, lists inverter hi wall, ducted and multi split systems.

Inverter vs non-inverter

InverterFixed speed (non-inverter)
How the compressor runsSpeeds up and slows down with demandFull speed, or off
Holding a temperatureEases back once the room is closeCycles on and off around the setting
Against its rated figuresCHOICE says real running costs may be lower than ratedDraws full power whenever the compressor runs
Where you'll find itAcross new splits, multi-heads and ducted systemsMostly in older systems

Why an inverter can use less than its label suggests

Rated figures assume the unit is working hard. The federal Energy Rating calculator notes that air conditioners may run below their rated capacity, so the real cost for the hours you pick may be lower than it shows. CHOICE makes the same point about modern inverter splits.

To estimate your own, use the input power (what the unit draws), not the capacity (what it delivers). Mitsubishi Electric lists both in kW, which makes them easy to mix up. RAA's method is input power in kW, times your rate per kWh, times the hours you run it. Our running cost tool does that sum with your own power rate.

An inverter won't fix the wrong size

Inverters cope with a range of loads, but they don't rescue a unit that's too big or too small. Rinnai says an oversized system short cycles, switching on and off too often, dehumidifies poorly and wears faster. An undersized one struggles to heat or cool, uses more energy and has a shorter life.

Hot days matter too. ActronAir says above 35 degrees an air conditioner loses cooling capacity, giving the example of a 14 kW system dropping to 10 kW or 12 kW. Mitsubishi Electric calls a professional heat load calculation essential, and our sizing guide explains what goes into one.

Questions worth asking instead

  • Is this model an inverter? It'll say on the spec sheet.
  • What's the rated input power in heating and in cooling?
  • How did you size it for this room?
  • How many stars does it have for our climate zone?
  • I'm replacing an old fixed-speed unit. Are you sizing the new one fresh, or copying the old kW?

What you can do, and what needs a licence

You can

  • Use the setback or sleep mode if yours has one. Mitsubishi Electric's i-save example holds the room 2 to 3 degrees warmer in cooling, or cooler in heating, while you sleep or are out.
  • Keep the filters clean. Daikin says swapping a blocked filter for a clean one can cut energy use by 5% to 15%.
  • Choose a sensible setting rather than the coldest or hottest the remote allows.
  • Check your model number in the manual or on the spec sheet to see whether it's an inverter.

Leave to a licensed installer

  • Sizing from a heat load.
  • Diagnosing a compressor or inverter board fault.
  • Refrigerant work, which needs an ARC licence.
  • Electrical work, and replacing an old unit.

What we'd do

Our take

Don't let the word inverter on the box sway you, because nearly everything carries it now. Put your attention on two things: the right size for the room, and the star rating for your climate zone. If you're replacing an old fixed-speed unit, ask the installer to size the new one from scratch, since the old unit's kW may never have been right.

What this work looks like

Photos from real jobs in Melbourne, to show what the work looks like. They aren't from an installer near you.

Two split system outdoor units on a roof deck
Two split system outdoor units on a roof deck. Aug 2022. A job in Melbourne.
Wiring a new outdoor unit
Wiring a new outdoor unit. A job in Melbourne.
A linear slot diffuser in a ceiling, for ducted air
A linear slot diffuser in a ceiling, for ducted air. Oct 2023. A job in Melbourne.

More job photos

Questions people ask

Is inverter the same as reverse cycle?
No. Inverter describes how the compressor runs. Reverse cycle means the unit can heat as well as cool. Plenty of units are both, but they're separate features.
Is an inverter worth it over a fixed-speed unit?
These days you're rarely choosing. ActronAir says inverters are standard across every brand, so the real comparison is between inverter models, on size, stars and warranty.
How can I tell if my old unit is an inverter?
Look up the model number in the manual or on the brand's website. If the spec sheet doesn't say, ask the technician at its next service.

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Where this information comes from

We don't publish prices. Every home is different, so an installer's written quote is the only real number. How we write and check these pages.

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