A package unit combines the heating and cooling equipment that would normally be split between an indoor air handler and an outdoor condenser into a single weatherproof cabinet, connected to the building by ductwork. Rooftop installation is possible for some applications, and the same design serves commercial buildings as well as homes.
Look for indoor equipment. If there is a furnace or air handler inside the house paired with an outdoor condenser, you have a split system. If all the equipment sits outdoors in one cabinet and the only thing indoors is ductwork and vents, you have a package unit.
It needs maintenance that accounts for full weather exposure, because every component sits outdoors rather than just the condenser. The offsetting advantage is that one visit covers both the heating and cooling sections, since they share a single cabinet.
Yes. Package units are common on commercial properties, where the all-in-one design and rooftop mounting keep equipment out of occupied space. For business properties with larger or multiple systems, our commercial HVAC page is the better place to start.