Ceiling Fans reduce climate impact and cost of living.

In the face of rising energy costs and growing concerns over climate change, many Australians are rethinking how they heat and cool their homes. With electricity bills climbing steadily and extreme weather patterns becoming more common, the question many households are asking is simple: how can we stay comfortable without increasing our environmental footprint — or our expenses?

“Ceiling fans are a great way to keep you cool on a hot summer’s day and if used alongside a heater, can help beat the chill in winter. You may be thinking that an air conditioner is the only way to go, guaranteeing a cool summer and a warm winter, but the humble ceiling fan can be more energy efficient and cost effective.” — Canstar Blue

This is where ceiling fans — long seen as a basic utility — are quietly emerging as part of a smarter, more sustainable solution. By combining low power consumption with year-round versatility, ceiling fans are helping Australians make practical choices that support both their finances and the planet.

What Does “Energy Efficient” Cooling and Heating Actually Mean?

Understanding Energy Efficiency:

Energy efficiency refers to how effectively a device converts energy into the desired result with as little waste as possible. When it comes to heating and cooling, energy efficiency refers to how much power a device uses to maintain a comfortable temperature — the more efficient the system, the less energy (and money) it takes to do the job.

While reverse-cycle air conditioners and electric heaters remain common in many homes, their energy demands can be significant. In contrast, ceiling fans — especially modern DC motor models — use far less electricity to circulate air, allowing them to operate for longer periods at a fraction of the cost.

Importantly, ceiling fans don’t cool or heat the air in the way dedicated heaters and coolers do. Instead, they make you feel cooler by creating a wind-chill effect through air movement , or, in winter, by recirculating warm air trapped near the ceiling down into living areas. This may not sound like a big deal, but what it does complement both heating and cooling systems — and when used strategically, can reduce the workload on higher-powered appliances and significantly increase the energy efficiency of the home through this air movement support.

“A ceiling fan can help reduce your energy bill by reducing your dependency on reverse-cycle air conditioners. They also make air conditioners more efficient by circulating the hot or cold air.”
— CHOICE

Creating a Framework to Compare Energy Use.

When comparing ceiling fans and air conditioning systems, it’s important to recognise that these two technologies create thermal comfort in fundamentally different ways. Air conditioners actively reduce the air temperature, while ceiling fans enhance thermal comfort by increasing air movement, which helps the human body feel cooler through the wind chill effect. So, while a fan doesn’t lower the room’s temperature directly, it can make it feel significantly more comfortable — and that perception has measurable value.

According to a peer-reviewed study published in Building and Environment (Volume 234), titled “Energy savings and thermal comfort in a zero-energy office building with fans in Singapore”, researchers found that elevated air movement from ceiling fans enabled them to raise the air conditioning setpoint by between 1.5°C and 4°C without reducing thermal comfort. In practical terms, this means that instead of setting an air conditioner to 18°C, occupants felt equally comfortable with a fan operating and the air conditioner set to 22°C.

This change had a notable effect on energy consumption:

• Cooling energy requirements were reduced by up to 32% when ceiling fans were used in conjunction with air conditioning.
• Reports of overcooling dropped from 33% of participants to just 9%, reflecting greater occupant comfort.
• Importantly, no negative impacts were observed in perceived productivity or air quality, and comfort levels actually improved in warmer, more humid climates — like many regions across Australia.

Source: Building and Environment, Volume 234

Although these findings were primarily focused on cooling in a tropical climate, the logic and figures behind the findings are consistent regardless of surrounding humidity levels – Thus, we can use these findings as a framework to explore the relationship between ceiling Fans and Air conditioning in more depth.

If you would like to read more about some of the effects ceiling fans can have on humidity, you can learn more here.

The Math – Why Ceiling Fans Make Financial Sense:

Applying our framework:

These findings provide a practical framework for understanding how ceiling fans and air conditioning can work together to improve efficiency without compromising comfort. By enabling a setpoint increase of up to 4°C, ceiling fans allow cooling systems to operate more efficiently and cost less to operate.

With this relationship established, we can now quantify the potential savings by comparing the typical energy consumption of various cooling appliances — both on their own and when used in tandem with a ceiling fan. According to Finder, the average electricity rate in Australia currently sits at 31.85 cents per kilowatt-hour (kWh).

Ceiling Fan Energy Usage Example:

Let’s begin by establishing how much power a ceiling fan will use. For this example, we’ll use Fanco’s Infinity-iD DC Fan — a premium performer in terms of both airflow and energy efficiency thanks to its DC Motor:

*Data from Fanco Infinity-iD DC Range and Finder (31.85¢/kWh). See also Sustainability Victoria for fan efficiency guidelines.

The energy consumption figures for the Fanco Infinity-iD DC ceiling fan are based on manufacturer specifications, which can be reviewed here: Fanco Infinity-iD DC Range. Running cost calculations are derived using the average electricity rate of 31.85¢/kWh, as reported by Finder: Average Cost of Electricity. For broader context on ceiling fan energy efficiency, refer to Sustainability Victoria’s guidelines: Fans – Sustainability Victoria.

Even on its highest speed, the Infinity-iD draws just 20.2W, translating to roughly 0.64 cents per hour at average electricity rates. In essence this is a near negligible mount of energy, especially when compared to other appliances and whitegoods that are left in continuous operation.

*Appliance data from multiple sources, using Finder electricity rates. See Sustainability Victoria for appliance efficiency benchmarks.

Cooling Appliance Energy Usage – Low and High Estimates:

According to CHOICE, a standard 4–6 kW split-system air conditioner typically consumes around 1.32 kWh per hour during use. This translates to a running cost of roughly 16 cents per hour on lower settings, and up to 48 cents on higher output. At first glance this may seem minute, but when compared to the Fanco Infinity-iD operating at its highest setting even the air conditioner’s lowest power level uses more than 26 times the energy of the fan.

When compared to other common cooling systems found in Australian homes, ceiling fans consistently demonstrate a significant advantage in energy efficiency — regardless of the product category:

*Cooling system data from  CHOICE, manufacturers, and Finder. See Sustainability Victoria for cooling costs.

Estimated Energy Savings When Using a Ceiling Fan with AC (Per Hour)*

The real opportunity here lies in pairing of the two, the combination of Air conditioning to cool the air, and the ceiling fan to effectively move it. If using a ceiling fan allows the air conditioning setpoint to rise by 4°C without impacting comfort, we can start to model different scenarios based on combined usage.

*Savings based on Building and Environment (Vol. 234) research, using 32% AC reduction framework. Pricing via Finder. See Sustainability Victoria for cooling advice.

Even if we take the most energy intensive system (the ducted system) and combine it with a ceiling fan, although the ceiling fan is technically using energy  Over a 24-hour period, that’s a potential saving of up to $8.40 — simply by running your ceiling fan alongside your air conditioning.

What this tells us: 
Best practice is to use your Ceiling fans and Air conditioning together.

In Summary:

These numbers highlight a key takeaway: using a ceiling fan in tandem with air conditioning can meaningfully reduce your overall energy costs without sacrificing comfort. While a ceiling fan alone doesn’t cool the air, it plays a vital supporting role — helping to achieve thermal comfort more efficiently by making higher AC setpoints feel just as effective.

“When the temperature setpoint was raised and elevated air movement was provided, a 32% energy reduction was obtained.” — Building and Environment, Volume 234

In climates with moderate summers, ceiling fans can even replace AC entirely for part of the season, offering an ultra-low-cost cooling alternative. Even when fans are used as part of a broader climate control strategy, their energy footprint is minimal — particularly in high-efficiency models like those in Fanco’s EarthFirst™ range, which includes fans that use as little as 1 watt on their lowest speed.

By reframing the question from “which one is better” to “how can they work together,” homeowners can unlock practical ways to save energy, reduce costs, and lower their environmental impact — all whilst maintaining a comfortable living environment.

At Fanco, we see the future of home comfort not in choosing between technologies, but in designing them to work in harmony. As this article demonstrates, pairing ceiling fans with air conditioning offers a practical path to reducing both energy use and environmental impact — without compromising on comfort.

That’s why our range is engineered not just for efficiency, but for synergy. Whether it’s a high-performance ceiling fan using just a single watt, or an advanced ventilation system designed to optimise airflow and air quality, every Fanco product is developed with the modern Australian home in mind.