HVAC Packaged Unit Vs. Split System: Everything To Know

Introduction – HVAC Package Unit Vs Split System

Interested in discerning between a packaged unit vs split system? The purpose of this article is to compare the two main types of HVAC systems: packaged units and split systems. The terminology is quite confusing. What one manufacturer means by packaged will not always be the same as another. Below we will break down the different types.

Example of a heat pump which are all packaged units that contains both a heater and air conditioner

First, an HVAC split system is any heating or cooling system that consists of outdoor components and indoor components. The outdoor component is usually the condenser/air compressor for the air conditioner (AC) that cools, the indoor component is usually the furnace that heats and/or air handler that moves the air conditioned air around. The AC is always driven by electricity whereas the furnace could be driven by fossil fuels (oil or natural gas) or electricity.

In contrast, a packaged unit is an all-in-one heating and cooling unit that is installed outside of the home, which avoids the need for a furnace unit in the basement (for heating) and even an air handler unit in the attic (moves cold air around the house). We will take a look at these systems with their advantages and disadvantages discussed in this article. The packaged unit could be a single fuel source heat pump that runs off electricity or a dual source AC and furnace that runs off electricity and natural gas.

While “packaged” implies the components for operation are housed within a single, self-contained unit, what varies are the methods and energy sources used to provide heating, cooling, or both. Below we provide a 4-class classification to add clarity and help you in decision-making when choosing the right HVAC system based on specific needs.

Note: you might be confused by the word HVAC, so in case you’re wondering, HVAC stands for Heating, Ventilation, and Air Conditioning.

Types Of Packaged Units

1. Packaged Air Conditioner (Runs On Electricity)

A packaged air conditioner is an all-in-one air conditioning unit that is installed outside of the home and features both the condenser and the air handler in one unit. These units are usually more suitable for smaller homes and areas with milder climates, as they are usually less expensive to install and maintain than a split system.

Packaged air conditioners are designed to provide adequate cooling for larger areas, making them a more cost-effective option for homeowners with large spaces to cool. Additionally, packaged air conditioners often have features such as dehumidifiers or air purifiers, giving the homeowner more control over their indoor air quality.

2. Packaged Air Conditioner And Gas Furnace (Runs On Electricity And Natural Gas)

A packaged AC and gas furnace is a two-in-one air conditioning system that combines a gas furnace and an electric air conditioner in one unit. The unit is designed for homes that have a gas line already installed and can provide both heating and cooling to the home.

Additionally, the unit is designed to be energy efficient and can be controlled remotely via a mobile app. The two-in-one design of a packaged AC and gas furnace can save the homeowner money on installation and maintenance costs and can provide more precise temperature control than a single unit.

3. Packaged Heat Pump (Runs On Electricity)

All heat pumps are packaged units, meaning they are all-in-one air conditioning units that are installed outside of the home and feature both the condenser and the air handler in one unit.

Heat pump packaged units act as both an air conditioner and a heater. Heat pumps work by transferring heat from one area to another; in the summer, they transfer heat from the inside of the home to the outside, while in the winter they transfer heat from the outside to the inside.

This allows them to provide both heating and cooling to the home, making them a more energy efficient and cost-effective option than separate air conditioning and heating units.

Packaged heat pumps are designed to be energy efficient and typically have features such as dehumidifiers or air purifiers, giving the homeowner more control over their indoor air quality.

4. Packaged Dual Fuel Systems (Runs On Electricity And Gas)

Also known as hybrid heat systems, these units combine the properties of a heat pump with a gas furnace. During milder weather, the heat pump operates using electricity, providing efficient heating and cooling.

When the temperature drops below a certain point where heat pumps become less efficient, the system automatically switches to the gas furnace for heating. This flexibility allows the system to choose the most cost-effective and efficient method of heating based on outdoor conditions. All necessary components are contained within a single unit, consistent with the definition of a “packaged” system.

Types Of Split Systems

Traditional HVAC Set-Up (Various Energy Sources Including Electricity, Natural Gas, Oil)

Traditional HVAC set-ups consist of a separate air conditioner and furnace. The air conditioner is responsible for cooling the air, while the furnace is responsible for providing heat during the colder months. These systems require separate installation of the air conditioner and furnace and are best suited for larger homes and areas with extreme temperatures. We don’t call this “split systems” because its two separate units.

Split Air Conditioner (Runs On Electricity)

A split air conditioner system is a type of air conditioning system that consists of an outdoor compressor and an indoor air handler. The compressor is responsible for cooling the air, while the air handler is responsible for circulating the air throughout the home. Split systems allow for more precise temperature control and are typically more energy efficient than a single unit.

Additionally, they can be customized to meet the specific needs of the homeowner, allowing for more precise temperature control. The invention of the mini-split meant that large ducts were no longer necessary to move air because the air unit was self-contained in each room. There are other options to overcome installing air conditioning in houses with ducts.

Packaged units are all-in-one – but all-in-one means different things!

Reasons To Choose A Packaged Unit

A packaged unit is an all-in-one air conditioning unit that is installed outside of the home and features air conditioners, heat pumps, furnaces, colocated in the same box. The advantages of a packaged unit include easy installation, low cost, and the ability to cool large areas. People may opt for a packaged unit if the split system is more efficient because of the installation and maintenance costs.

A packaged unit is usually less expensive to install and maintain, and may be more suitable for smaller homes and areas with milder climates. That translates to lower labor costs, which could take up to 50% of the total cost.

Lastly, a packaged unit can provide adequate cooling for larger areas, making it a more cost-effective option for homeowners with large spaces to cool.

Reasons To Choose A Split System

People may opt for a split system because it offers several advantages over other types of air conditioning systems. Split systems are typically more energy efficient, quieter, and can cool multiple rooms at once. Additionally, they can be customized to meet the specific needs of the homeowner, allowing for more precise temperature control.

Lastly, split systems can be more easily repaired, as only the specific component that needs to be replaced needs to be accessed. For these reasons, many people opt for an HVAC split system despite the more complicated setup.

What is the advantage? You’re putting more large objects that take up space inside the house. That means higher labor costs, which could take up to 50% of the total cost, and less space.

Comparing Package Unit Vs Split System

There is considerable variability from what we describe above. When comparing the cost of an HVAC split system and a packaged unit, the HVAC split system is typically more expensive to install and maintain. However, the long-term energy savings of a split system may outweigh the initial cost.

The installation of a packaged unit is usually less expensive than a split system, but still requires a professional to ensure proper installation. In terms of maintenance, both systems require regular cleaning and filter changes to ensure peak performance.

Other Considerations For Packaged Unit Vs Split System

When deciding between an HVAC split system and a packaged unit, other considerations include the size of the living space and the local climate. An HVAC split system may be more effective in larger homes and in areas with extreme temperatures, while a packaged unit may be more suitable for smaller homes and areas with milder climates.

Summary – Packaged Unit Vs Split System

In conclusion, when considering an HVAC split system or a packaged unit, it is important to consider the size of the home, the local climate, and the installation and maintenance costs. An HVAC split system is typically more expensive to install and maintain, but may be more suitable for larger homes and areas with extreme temperatures. A packaged unit is usually less expensive to install and maintain, but may be better suited for smaller homes and areas with milder climates. Ultimately, the best option depends on the individual needs of the homeowner.

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