Air conditioning in Panama is not always essential. Despite the location in Central America there are large areas of the country which are not subject to oppressive heat such as the mountains. Here the locals enjoy mild temperatures all year round, so there is no need for an air conditioning system. A simple heating system may be required as temperatures drop in the evenings and most people will opt for a plug in electric heater or a log fire.

In places such as Panama City the temperatures can be oppressive and air conditioning is essential. Most modern apartment blocks are being designed with air conditioning systems already in place. Those homes that do not have air conditioning will not normally go to the expense of having one installed, opting for ceiling fans and free-standing floor fans instead.