Should You Choose a Package Unit or a Split System for Your Home?

By Mike Haines 1/25  Choosing the right HVAC system for your home is crucial for both comfort and energy efficiency. At ACDirect.com, we understand that deciding between a package unit and a split system can be daunting. With numerous factors to consider—from space constraints and installation complexity to long-term costs and performance—we're here to simplify the decision-making process. In this guide, we'll break down the essential differences between these two popular HVAC configurations, helping you determine which option best suits your home's unique needs and your personal comfort goals.

How Can I Tell If I Need a Package Unit or a Split System?

Choosing the right HVAC configuration for your home can feel overwhelming, particularly if you’re torn between a package unit and a split system. Both have their own strengths, weaknesses, and ideal use cases. This article will guide you through the essential differences, helping you decide which option fits your home, budget, and comfort goals best.

What Is an HVAC Package Unit?

A package unit is an all-in-one heating and cooling solution. Rather than having separate indoor and outdoor components, it consolidates all equipment—compressor, condenser, and evaporator—into one self-contained cabinet. This cabinet is usually installed either on the roof (common in commercial buildings) or on a concrete slab beside the house, especially in regions where rooftop installation is less common.

Key points:

• All heating and cooling components are in one cabinet.
• Commonly used for commercial buildings but also popular in residential settings with limited indoor space.
• Typically easier to install or replace as a single unit.

What Is a Split System?

A split system separates the HVAC equipment into two main components. You have the indoor air handler (or furnace with an evaporator coil) and the outdoor condensing unit. The two are connected by refrigerant lines and electrical wiring.

Key points:

• The compressor and condenser coil are housed outdoors; the evaporator coil and air handling components are indoors.
• Common in homes that have a dedicated indoor space for a furnace or air handler.
• Tends to offer higher efficiency options, though efficiency depends on system design and sizing.

Package Units Pros and Cons

Advantages of a Package Unit

Space-Saving Design
A package unit eliminates the need for large indoor mechanical rooms or furnace closets. If you have limited indoor space, a package unit can free up valuable square footage.

Single-Unit Installation
Installation for package units is often straightforward. With everything in one box, your installer only needs to set it in place, connect ductwork, electricity, and gas (if applicable), and you’re essentially ready to go.

Less Indoor Disruption
If you’re replacing an older package unit or upgrading your entire HVAC system, the majority of work happens outside. This reduces the amount of in-home upheaval, making it more convenient for busy households or commercial applications.

Easier Accessibility for Maintenance
Maintenance and repairs can be more convenient since the technician only needs to access one cabinet. This can be a plus if the package unit is mounted at ground level.

Potential Drawbacks of a Package Unit

Exposure to Outdoor Elements
Because the entire system is outside, components might wear faster due to exposure to wind, rain, hail, and temperature extremes. Proper housing and protective covers can mitigate this, but it remains a factor for longevity.

Less Flexibility in Customization
Package units are somewhat standardized in design and may limit your ability to mix and match components (e.g., different coils or variable-speed blowers). If you want a highly customized HVAC setup, a split system might offer more flexibility.

Roof Vulnerability (If Rooftop-Mounted)
In some cases, the package unit is installed on the roof, which may lead to roofing concerns such as leaks or structural stresses. This is particularly relevant for older buildings that aren’t built to accommodate heavier rooftop systems.

Split Systems Pros and Cons

Advantages of a Split System

Energy Efficiency
Split systems often offer more energy-efficient options because you can select a high-efficiency outdoor unit to pair with a compatible high-efficiency indoor air handler or furnace. This flexibility can lead to lower utility bills and better performance overall.

Quieter Operation Indoors
Since the compressor (the noisiest component) is located outdoors, the indoor section operates more quietly than some package units. This can be a significant advantage if you’re sensitive to noise.

Customization Potential
You can choose from various indoor units, adding features like variable-speed blowers, advanced filtration, and zoning systems. This setup allows you to fine-tune your HVAC system based on your home’s specific needs.

Longevity
In many cases, split systems can be easier to maintain in a less harsh environment. Because the indoor components are protected from the weather, they may last longer with proper upkeep.

Potential Drawbacks of a Split System

Requires Indoor Space
A split system’s air handler or furnace needs to be installed in a dedicated indoor area such as an attic, basement, closet, or mechanical room. If you lack this space, a split system can be inconvenient.

Complex Installation
Because a split system involves separate indoor and outdoor units, the installation process can be more involved. Technicians must run refrigerant lines, electrical wiring, and sometimes additional ductwork through walls or ceilings.

Maintenance in Multiple Areas
While many homeowners appreciate the separation of components, maintenance might be slightly more complicated since you need access to both indoor and outdoor units.

Factors to Consider When Deciding

Climate and Environmental Conditions

Hot and Dry Climates: In regions where cooling is a priority for most of the year, a split system can offer higher efficiency, especially if you invest in a high SEER (Seasonal Energy Efficiency Ratio) rating.

Humid Climates: Split systems often allow better humidity control, particularly if you choose a variable-speed blower. Package units can manage humidity but may lack some high-end moisture control features available in certain split system models.

Extreme Weather: If you live in an area with extreme weather fluctuations, having the unit outdoors in a package configuration could lead to faster wear and tear.

Space Availability

Limited Indoor Space: A package unit may be the best choice if you don’t have room for a furnace or air handler indoors.

Suitable Attic/Basement Space: If you have a spacious attic or basement, a split system could be an easy fit.

Energy Efficiency Goals

Customization: If you prioritize energy efficiency and want to mix and match high-efficiency components, a split system may give you more options.

All-in-One Efficiency: Some package units also come in high-efficiency models, but your choices might be more restricted.

Initial vs. Long-Term Costs

Installation Costs: Package units can sometimes have lower installation costs due to simpler setup. Split systems can be pricier initially but may offer better efficiency and lower utility bills over time.

Maintenance Costs: With a package unit, you’ll likely have simpler maintenance since the entire system is in one place, but exposure to the elements might shorten equipment life. Split systems can last longer but can require more in-depth maintenance in two locations.

Comparing Performance and Longevity

Package Unit Performance

Modern package units can achieve high levels of performance and efficiency, especially if you opt for newer models with efficient compressors and blower designs. However, they may not always include advanced features like variable-speed fans or multiple compressor stages.

Split System Performance

A split system can deliver excellent performance, particularly if you invest in high-efficiency outdoor units paired with variable-speed furnaces or air handlers. You can also add zoning systems and advanced thermostats that fine-tune indoor comfort room by room.

Longevity Considerations

Package Units: Typically have a lifespan of around 10 to 15 years, depending on climate and maintenance.

Split Systems: Can last 15 to 20 years if well-maintained and installed properly.

Installation Considerations

Ductwork Requirements

Both package units and split systems typically use ductwork to circulate conditioned air throughout the home. In some retrofit scenarios, especially older homes with minimal duct space, it might be easier to install a package unit outdoors if duct routing is too complex indoors. However, split systems can also be retrofitted with minimal duct modifications if planned correctly.

Structural Feasibility

Roof Load: If you’re considering a rooftop package unit, confirm your home’s roof structure can handle the weight.

Ground-Level Slab: Most package units are installed on a slab, making the ground-level approach simpler. For split systems, ensure there’s an appropriate outside location for the condensing unit that meets local codes and offers enough clearance for airflow.

Noise and Vibration

Package Units: When mounted on the ground, noise can be slightly higher outdoors due to the single cabinet holding all components. Rooftop placements can transmit vibrations through the building structure if not mounted with proper vibration isolation.

Split Systems: Generally quieter indoors, but the outdoor condenser can still produce noticeable noise. Proper installation, including sound-dampening measures, can minimize disruptions.

When considering an HVAC upgrade, many homeowners are turning to ductless AC solutions for their flexibility and efficiency. Ductless air conditioners offer a versatile alternative to traditional systems, providing precise temperature control without the need for extensive ductwork. 

Maintenance and Repairs

Servicing a Package Unit

Accessibility: Maintenance is straightforward if the unit is mounted on the ground; everything is in one place.

Weather Impact: Outdoor exposure can lead to quicker part degradation. Coils, motors, and electrical components may require more frequent checks.

Servicing a Split System

Indoor Access: You’ll need to provide a clear path to the furnace or air handler for the technician.

Outdoor Condenser Access: Keep foliage and debris at least two feet away from the condenser for optimal airflow and easy maintenance.

Common Repair Costs

Package Unit Repairs: Sometimes can be more cost-effective due to the single-cabinet design, but weather-induced wear can offset these savings.

Split System Repairs: May involve diagnosing issues in two locations, sometimes leading to higher labor costs, but part replacement is typically straightforward.

Energy Efficiency Ratings

SEER and EER

SEER (Seasonal Energy Efficiency Ratio): Measures cooling efficiency over an entire season.

EER (Energy Efficiency Ratio): Assesses how a system performs at a specific outdoor temperature, often used in hotter climates.

AFUE and HSPF (For Heat Functions)

AFUE (Annual Fuel Utilization Efficiency): Applies to gas-powered furnaces; measures how efficiently a furnace converts fuel to heat.

HSPF (Heating Seasonal Performance Factor): Measures the heating efficiency of heat pumps.

Comparing Ratings for Package vs. Split

Package Units: Often have slightly lower efficiency ratings compared to high-end split systems, but premium models are available.

Split Systems: Typically offer a range of efficiency tiers, allowing homeowners to pick an option that aligns with their energy conservation goals.

For those seeking a more tailored approach, minisplit systems deliver both cooling and heating capabilities, making them an excellent choice for year-round comfort. Whether you're interested in a single ductless air conditioner for a specific room or multiple ductless AC units to cover larger areas, these systems are designed to meet diverse needs. Embracing ductless air conditioning not only enhances your home's efficiency but also offers the convenience of minisplits cooling and heating, ensuring optimal indoor climate control without compromising on space or style.

Cost and Value

Upfront Investment

Package Units: Usually cheaper to install when factoring in labor and materials, but unit costs can be higher or lower depending on brand and efficiency rating.

Split Systems: Might cost more to install, especially if modifications are needed for ductwork or electrical services.

Operational Costs

Package Units: Consistent bills, though efficiency might not match top-tier split systems.

Split Systems: Potentially lower monthly energy costs if you invest in a high-efficiency model. The difference in energy savings can be significant over the lifespan of the unit.

Return on Investment (ROI)

Package Units: Good option if you value simplicity and lower installation hassle.

Split Systems: Excellent long-term ROI if you’re aiming for higher comfort levels and reduced utility bills, particularly in extreme climates.

Making the Right Choice

Consider Your Long-Term Plans

If You Plan to Stay Long-Term: A split system with high efficiency might pay off in comfort and energy savings.

If You Might Move: A simpler package unit could suffice, particularly if you want a hassle-free installation.

Home Layout Constraints

No Indoor Mechanical Space: Lean toward a package unit.

Basement or Attic Availability: A split system can offer customization and efficiency.

Local Climate

Mild Climates: Package units can be more than enough for moderate regions.

Extreme Hot or Cold: Split systems with high-efficiency and advanced humidity control may provide superior comfort.

Consultation and Professional Assessment

Even with all the information provided here, the best course of action is to consult with a professional HVAC technician or an experienced online HVAC supplier (such as AC Direct). They can perform a Manual J load calculation, assess your home’s ductwork, and advise on specific brands or models.

Key questions to ask your HVAC consultant:

How large is my home’s cooling/heating load?

Are there any existing ductwork or structural limitations?

What efficiency levels align with my budget and climate?

Which brand offers the best warranty and local service support?

Determining whether you need a package unit or a split system is a multifaceted decision influenced by your home’s layout, local climate, efficiency goals, and budget. If you’re short on indoor space and want a more compact all-in-one solution, a package unit can be an excellent fit. It’s straightforward to install, and maintenance is consolidated in one outdoor enclosure. However, be aware of faster component wear due to weather exposure and potentially fewer advanced efficiency features.

On the other hand, if you have available indoor space and a desire for higher efficiency or a more customizable setup, a split system typically delivers better performance, quieter operation indoors, and a broader range of technology choices, such as variable-speed fans and multi-stage compressors. While installation can be more complex and potentially pricier, a well-chosen split system often delivers significant energy savings over its lifespan.

In either scenario, professional guidance is crucial. Consulting with an HVAC professional or an expert sales team ensures you get a system tailored to your home’s specific needs. They can help you balance initial costs, long-term savings, and the comfort level you expect. With careful planning and expert input, you’ll confidently select the right system—package or split—that keeps you comfortable all year round while optimizing energy usage and your budget.