Packaged System

What Is an HVAC Packaged System (HVAC Package Unit)? 

By Anne Fonda 

An HVAC packaged system, also known as an HVAC package unit, is a type of ducted heating and cooling system in which, instead of one unit outside and one unit inside (as with a standard split system), the heating and cooling components are both contained in a single outdoor unit. 

Packaged HVAC units provide a single outdoor cabinet with the necessary components to heat and/or cool all the rooms of your home. Packaged systems usually consist of some combination of an air conditioner, furnace, evaporator coils, condensers, humidifiers, air handlers, and other components. 

Since both the heating and cooling coils and other components are in one outdoor packaged unit, the HVAC unit is larger than your standard split system AC unit or heat pump. 

Where are packaged HVAC units best suited? 

In U.S. homes, traditional split systems are the norm, with 85% of new construction including a split system. Packaged HVAC systems are less common, with about 10-15% of homes utilizing them. 

Common residential installation locations include: 

• Slab-on-grade houses with limited indoor utility space 
• Homes with flat roofs 
• Manufactured/mobile homes 

If you have a current packaged HVAC system, when it comes time for replacement, you will want to get another packaged HVAC unit. But remember, you can upgrade. 

What are the benefits of packaged HVAC systems?  

There are several advantages to using packaged systems for your temperature control and comfort needs:  

1. Cost Savings: Installing a packaged system can save you money in both energy costs and installation costs. By having all the necessary components in one place, you don’t have to pay extra labor costs to install multiple units throughout your home. 

1. Space Efficiency: Because packaged systems are housed in a single cabinet outdoors, they do not take up significant space indoors like a split system. Packaged systems can fit many unique applications from a side-discharge ground-level application to various rooftop applications.  

1. Easy Maintenance: Since packaged systems have all their key components in one place (e.g., 90% single-side service), maintenance is much easier than with split system units.  

What types of packaged HVAC units are available? 

Packaged air conditioner 

A packaged air conditioning unit is a perfect solution for homes in warmer areas of the country that have limited space for a split system.  

Packaged heat pump 

A packaged heat pump unit combines heating and air conditioning all in one unit. These systems offer an energy-efficient all-electric solution for homes in mild climates. 

Packaged dual fuel (Earthwise™ hybrid) 

A packaged dual fuel system heats your home with either an electric heat pump or a gas furnace based on the weather outside, so you’re always using the most efficient method to stay warm. In addition, the heat pump cools your home in the summer. 

Packaged gas/electric furnace/AC combo 

A packaged gas-electric system offers you electric air conditioning and gas heating. In warm weather, it’s an all-electric high-efficiency air conditioner. In cold weather, it provides warmth from natural gas or propane. 

Choosing your perfect packaged HVAC system 

When selecting an HVAC package unit, there are several factors to consider:  

1. Size and Capacity: Make sure you select a packaged system that is appropriate for the size of your home and can provide adequate temperature and humidity control.  

1. Type: There are different types of packaged systems available. Consider the type that would work best for your climate and budget, while considering your utilities and government rebates/incentives.  

1. Efficiency Ratings: Look for energy-efficient models that come with good ratings from ENERGY STAR® or other organizations like AHRI (Air Conditioning, Heating, Refrigeration Institute). This will help ensure that you are getting a packaged HVAC system that will provide efficient performance and cost savings for the long run.  

Anne Fonda, Content Writer

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A Content Writer with Trane Technologies, Anne Fonda researches topics and writes for Trane® and associated residential HVAC brands. She works in collaboration with Trane Technologies subject matter experts, offering easy-to-understand, informative content on complex topics. Her goal is to help consumers make informed decisions on the products and services they need.

She has written for HVAC and other service provider websites for over 16 years. Before transitioning to web content writing, Anne had a 14-year stint as an award-winning journalist. She graduated cum laude from the University of Missouri-Columbia School of Journalism.

When she’s not working, Anne enjoys playing word games, reading, gardening, spending time with family, and visiting gardens and museums.

Expert review by Samantha Barkley, Product Manager, Residential Packaged Equipment