🛠️ What Is a Package HVAC Unit?
A package HVAC unit combines heating and cooling in a single outdoor cabinet, making it an all-in-one system that saves indoor space and simplifies installation.
💵 Average Cost of Package Units (2025)
Package HVAC unit costs vary based on size, efficiency, brand, and installation complexity.
📊 Equipment Costs:
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2 Ton: $2,800 – $4,200
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3 Ton: $3,300 – $5,000
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4 Ton: $3,800 – $5,800
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5 Ton: $4,300 – $6,500
🛠️ Installation Costs:
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Ground Install: $2,000 – $4,000
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Roof Install: $3,000 – $5,000 (may require crane services)
For a 3-ton system, homeowners typically spend $5,500 – $9,000 total for unit + install.
Cost estimator for HVAC installs, including package units.
🔍 Factors That Impact Package Unit Costs
1️⃣ Size and Capacity
Larger homes require higher-tonnage units, increasing both equipment and install costs.
2️⃣ Efficiency Ratings
Higher SEER2 or AFUE-rated systems cost more upfront but save on utility bills over time.
3️⃣ Type of Package Unit
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Heat Pump (often more expensive than AC-only)
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Gas/Electric
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AC-only
4️⃣ Installation Type
Roof installs cost more due to crane and structural needs.
5️⃣ Ductwork & Electrical Upgrades
Old or leaky ducts may need replacement, adding $1,500 – $3,500 to the project.
The additional costs that can arise during HVAC installs.
🏠 Do Package Units Save Money?
✅ Lower Labor Costs
Installation is often faster with fewer indoor connections.
✅ Reduced Indoor Space Requirements
Saves room in homes without basements or utility closets.
✅ Fewer Parts and Connections
Simplifies long-term maintenance, potentially reducing service costs.
While the upfront cost may be similar to split systems, savings can come from lower installation and maintenance requirements.
Energy.gov explains potential efficiency and energy savings for package HVAC units.
🏷️ Available Rebates and Incentives
High-efficiency package units may qualify for:
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Federal tax credits (up to 30%) for Energy Star-rated systems.
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Local utility rebates.
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Manufacturer incentives.
Check DSIREUSA.org to find rebate opportunities in your area.
🛒 Should You Buy Online or Locally?
Buying Online (like The Furnace Outlet):
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Lower equipment pricing.
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Transparent pricing and shipping.
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Direct-to-home delivery.
Buying Locally:
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Local installer may bundle equipment + install.
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Quicker turnaround if stock is available.
📈 Is It Worth Paying More for High Efficiency?
Higher SEER2-rated units can reduce energy bills significantly:
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14.3 SEER2 vs. 17 SEER2 can save 10-20% on cooling costs annually.
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High AFUE models lower heating costs in colder climates.
Calculate payback periods using your local utility rates to decide if higher upfront costs are justified.
Energy Star provides calculators and efficiency comparisons.
🛡️ Warranties to Expect
Most package HVAC units include:
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5-10 year parts warranty.
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Optional extended warranties.
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Labor warranties vary by installer.
Always register your unit after purchase to ensure warranty validity.
🏁 Final Thoughts: Budgeting for Your Package HVAC Unit
Expect to budget:
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Small home (2-ton): $5,000 – $7,500
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Medium home (3-ton): $5,500 – $9,000
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Large home (4-5 ton): $6,500 – $11,000
Add 10-20% buffer for ductwork or electrical upgrades.
Upgrading to a package unit can be a cost-effective, space-saving HVAC solution for homes without basements, but requires clear planning to avoid budget surprises.
In the next article we will know more about: Installing a Package HVAC Unit: What to Know Before You Buy
