Australia's challenge is to deal with high peaks on the electricity grid in summer due to air conditioning, which is strongly related to the high penetration of residential air conditioning systems. A small scale solar absorption chiller building model was developed to investigate its performance and effectiveness in the different climates of Australia, and to compare it with the existing split systems. Different storage options are simulated and compared to each other. Furthermore, the system is compared to the effect of a photovoltaic supported conventional system and also the effects on the electricity grid are analysed.