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Here’s How To Save On Your Electricity Bill If You Can’t Go Without Using Your Air-Conditioner In Singapore

Choosing and buying the right air-conditioning unit in Singapore can save you a tidy sum on your monthly utilities bills.

This article was first published on SingSaver.

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.

# 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.

# 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.

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

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.

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.

SingSaver is a personal finance comparison platform which provides free, quick and easily accessible resources to help consumers understand personal finance products in Singapore; including credit cards, personal loans and travel insurance. SingSaver is committed to helping users find the right financial product with easy-to-use self-serve comparison tools.

End-Of-Year SingSaver Credit Card Promotion Till 30 November 2018

If you are looking to sign up for a credit card for your end-of-year shopping trips or overseas holidays, SingSaver has a wide range of cards that you can choose from. From now till 30 November 2018, if you apply for a credit card through SingSaver, you can receive additional reward for every successful application.

You can choose credits cards from American Express, UOB, Citibank and many others. Do note, you must apply for your credit card(s) and complete your redemption form to qualify for the additional rewards.

American Express

For every successful American Express credit card sign up, you will receive$150 in cash from SingSaver. These are the eligible American Express cards. Click on the link below to sign up through SingSaver.

  1. American Express Singapore Airline Krisflyer Card ($150 cash voucher)
  2. American Express True Cashback Card ($150 cash voucher)
  3. American Express Krisflyer Ascend Card ($150 cash voucher)
  4. American Express Capitacard ($100 cash voucher)


For every successful UOB credit card sign up, you will receive $50 in cash from SingSaver. These are the eligible UOB cards.Click on the link below to sign up through SingSaver.

  1. UOB One Card ($50 cash voucher)
  2. UOB YOLO ($50 cash voucher)
  3. UOB Delight Credit Card ($50 cash voucher)
  4. UOB PRVI Miles Card ($50 cash voucher)

For every successful Citibank Card sign up (New Citi Customers Only), you will receive $200 in NTUC, Takashimaya or Grab Voucher from SingSaver. For existing customers, you will receive $50 in NTUC Voucher.


These are the eligible Citibank cards. You can click on the link below to sign up through SingSaver.

  1. Citi Cashback
  2. Citi PremierMiles
  3. Citi Reward
  4. Citi SMRT Card

For the full list of credit cards promotion including cards offered by HSBC, OCBC and Standard Chartered, you can check out the SingSaver website.

The above rewards are a SingSaver exclusive deal and you must apply for these cards through SingSaver AND complete the redemption form in order to qualify for them. Promotion ends 30 November 2018. Terms and conditions apply.

Please refer to the graphics below on the steps required to apply for your credit and to redeem your promotion.