In a packaged system, all equipment is built into an outdoor unit, usually on a concrete slab or other platform. The "package" that gives it its name provides central air conditioning during the summer and heat in colder months.

The primary advantage of a packaged system is that they are ideal for homes with space constraints that do not allow for a traditional split system. One draw back however is that packaged systems must be mounted on the root top of the home.

Models available use:

• Electricity for resistance heating and cooling
• Gas for heating and electricity for cooling
• Heat pump models using electricity

The efficiency of packaged systems are rated using SEER (for cooling efficiency), AFUE% (for gas heating efficiency) and HSPF (for heat pump efficiency). Ductwork is required to transfer the heated or cooled air throughout the home.