Pull out the sides of the air conditioner and check them for holes, gaps or cracks. You can seal any small holes with duct tape or electrical tape, but if the sides are in bad shape, they should be replaced. Holes and cracks in the sides of a window air conditioner allow cool air to escape, running up your electric bill and reducing the efficiency of the unit. Replacing those sides is one of the best things you can do to insulate your window air conditioning units.
Examine the areas around the sides of the air conditioner where they meet the window. Apply caulking to seal up any gaps between the sides and top of the air conditioner and the window it rests in. This caulking helps to insulate the air conditioner and improve cooling efficiency.
Close the fresh air vents in the air conditioner while the unit is on. Having the fresh air vents open while the air conditioner is operating means that you are paying to cool the outside air.