Air-conditioning applications using propane (R-290) have several environmental and thermodynamic advantages over more commonly used refrigerants, such as R-410A and R-22. This paper presents the development of a mathematical model for variable capacity air conditioning systems that use R-290/POE ISO 22 as refrigerant/lubricant. The thermodynamic performance of the refrigeration system is evaluated in terms of the SEER (Seasonal Energy Efficiency Ratio). The thermodynamic properties of the refrigerant/lubricant mixture were obtained from a departure-function approach using the Peng-Robinson equation of state. The effect of the oil on the condenser and evaporator heat transfer coefficients and pressure drops was also taken into account. Sub-models were developed for each component of the air conditioning system, including the connecting lines and the scroll compressor.