The Difference Between a Split System and a Packaged HVAC Unit
June 23, 2025 By: One Way Heating & Cooling
Choosing the right HVAC system for your home is one of the smartest investments you can make, especially in a climate like El Paso, TX, where summers can be blistering hot and winters still call for reliable heating. If you’re researching options, you’ve probably come across two common types: split systems and packaged HVAC units.
Understanding the differences between these two HVAC setups can save you money, improve your home comfort, and make sure your system runs efficiently for years to come. Let’s dive deep into what each system offers, their pros and cons, and how to decide which one is right for you.
What is a Split System HVAC?
A split system HVAC is the traditional and most widely used setup across American homes. The name “split” comes from the fact that the system’s components are divided between two locations: an outdoor unit and an indoor unit.
Components of a Split System
Outdoor Unit: This contains the compressor and condenser, which work together to release the heat absorbed from inside your home to the outside air.
Indoor Unit: This includes the evaporator coil and either an air handler or furnace that circulates air through your ducts and into your living spaces.
How Does a Split System Work?
The outdoor unit compresses and cools refrigerant, which then travels inside to the evaporator coil. The indoor unit uses this cooled refrigerant to absorb heat from your home’s air and blow cool air through your vents. In heating mode, the process reverses or the furnace generates heat, depending on the system.
Benefits of a Split System HVAC
Energy Efficiency: Split systems often have higher SEER (Seasonal Energy Efficiency Ratio) ratings, making them more efficient and cost-effective over time.
Quieter Indoor Operation: Since the compressor is outside, the noise level inside your home is significantly reduced.
Flexible Installation: You can choose from various indoor unit options, including ducted or ductless systems, and even install multiple indoor units for zoned heating and cooling.
Better Air Quality: Many split systems come with advanced filtration options, improving the air you breathe.
Long-Term Savings: Higher efficiency means lower monthly energy bills, especially important in El Paso’s hot summers.
Things to Consider with a Split System
Installation requires space for both indoor and outdoor units, as well as proper ductwork.
The upfront cost can be higher compared to packaged units due to the complexity of installation and multiple components.
Maintenance involves servicing both indoor and outdoor units regularly.
What is a Packaged HVAC Unit?
A packaged HVAC unit is a self-contained system where all the heating and cooling components are housed in one outdoor unit, typically placed on the roof or beside your home.
Components of a Packaged Unit
The compressor, condenser, evaporator coil, and air handler are all combined into a single box.
It connects directly to your duct system to circulate conditioned air throughout your home.
How Does a Packaged Unit Work?
The packaged unit performs all cooling and heating functions inside one outdoor enclosure. It sends cooled or heated air through your ductwork into your home without the need for separate indoor equipment.
Benefits of a Packaged HVAC Unit
Space-Saving: Because it’s all outside, you free up valuable indoor space, which is ideal if you don’t have a basement or attic.
Simplified Installation: With fewer parts to install, setup is typically faster and less disruptive.
Easier Maintenance: All components are in one place, making access for repairs and routine maintenance straightforward.
Cost-Effective: Generally, packaged units have a lower upfront price compared to split systems.
Things to Consider with a Packaged Unit
Usually less energy-efficient than split systems due to shared components and heat exchange.
Can be noisier since the entire system is outside, often near living or sleeping areas.
Limited customization and zoning options, which means less flexibility for larger or multi-story homes.
Which HVAC System is Right for Your El Paso Home?
When deciding between a split system and a packaged HVAC unit, consider your home’s layout, space availability, and your energy efficiency goals.
If you have enough outdoor and indoor space, want the highest efficiency, and prefer quieter operation inside your home, a split system may be the ideal choice. Split systems also offer more flexibility in terms of zoning, which means you can customize comfort room-by-room, perfect for larger homes or those with multiple floors.
On the other hand, if your home has limited indoor space, such as no basement or attic, or if you want a simpler installation process with fewer components to maintain, a packaged unit could be a great fit. Packaged units are common in smaller homes and commercial buildings where space inside is at a premium.
Why Local Expertise Matters in El Paso
El Paso’s unique desert climate, with scorching summers and mild winters, demands HVAC systems that can handle high cooling loads efficiently without breaking the bank. Choosing the right system isn’t just about picking split vs packaged; it’s about finding a solution tailored to your home’s size, insulation, and how you live.
This is where working with a local expert really pays off.
Why Choose One Way Heating & Cooling?
At One Way Heating & Cooling, we specialize in helping El Paso homeowners navigate their HVAC options with confidence. We understand the local climate challenges and are committed to recommending systems that deliver comfort, efficiency, and long-term value.
Our services include:
Expert advice to help you choose between split and packaged HVAC systems
Professional installation ensuring your system runs at peak performance
Preventive maintenance to keep your HVAC running smoothly year-round
Fast and reliable repairs whenever you need them
We’re proud to serve El Paso with honest, affordable, and top-quality HVAC solutions.
Ready to Upgrade Your HVAC?
Don’t wait for the next heat wave to realize your system isn’t up to the challenge. Contact One Way Heating & Cooling today for a consultation and find out which HVAC system, split or packaged, is the perfect fit for your El Paso home.