What Is a Rooftop AC Unit?

HVAC Logo IconBy Tom MoorApril 7, 2025
Rooftop HVAC system

When you think about an air conditioning system, you may picture that familiar outdoor unit sitting next to the house, with another component tucked away inside. But there’s another option that’s gaining attention, especially for homeowners looking to save space: a rooftop AC unit.

If you’ve ever noticed a big metal box perched on top of a commercial building, that’s a rooftop unit, or RTU or packaged system. While these systems are commonly used in businesses, they can also work for certain homes. So, how is a rooftop AC unit different from a traditional system, and could it be the right choice for your home? Let’s break it down.

How Does a Rooftop AC Unit Work?

A rooftop air conditioning unit is a self-contained system installed on the roof of a building or home. Unlike traditional central air systems, which have separate indoor and outdoor components, a rooftop unit houses everything – compressor, condenser, and air handler – in one cabinet.

Warm air from your home moves through the ductwork to the rooftop unit, where it passes over the evaporator coil. The refrigerant inside the coil absorbs heat from the air, cooling it down as a fan pushes the refreshed air back through your ducts and into your living spaces.

At the same time, the warmed refrigerant moves to the compressor, where the system releases the heat outside through the exhaust. Some models combine both heating and cooling, making them a convenient, year-round HVAC solution.

Rooftop units are especially popular in commercial spaces, but they’re gaining traction with homeowners who want to maximize indoor and outdoor space, keep their yard open for landscaping or patios, or simply prefer a cleaner, less cluttered look.

The Pros and Cons of Installing a Rooftop AC Unit

The biggest difference with a rooftop unit is its location and design. Traditional central AC systems usually place the condenser outside at ground level and the air handler indoors, often in a basement, attic, or closet. With a rooftop unit, it’s all housed together on the roof.

Here’s a look at the pros and cons:

Pros

  • Space-saving: With no bulky equipment inside your home or taking up space in your yard, rooftop units free up valuable areas for landscaping, outdoor seating, or storage.
  • Simpler installation: Since everything is in one self-contained unit, installation can be quicker and require fewer connections than traditional split systems.
  • Increased efficiency: Many rooftop units include advanced features like economizers, which reduce energy use by pulling in cool outside air when conditions allow.
  • Quieter operation: With the unit overhead, you’ll notice less noise compared to a system placed near windows or outdoor living spaces.

Cons

  • Weather exposure: Constant sun and severe weather can impact performance over time, especially in hot or storm-prone regions. While built to handle the elements, these units perform best in moderate or cooler climates.
  • Roof access required: Maintenance and repairs require roof access, which can be less convenient than servicing ground-level systems. Even routine tasks, like changing the air filter, involve getting up on the roof.
  • Higher installation costs: Installation can be more expensive, particularly if you’re retrofitting an existing home.
  • Not ideal for all roof types: Homes with steep pitches or complex roof designs may not be suited for rooftop systems.

Things to Consider Before Installing a Rooftop AC Unit

While rooftop units come with a range of advantages, they’re not the right fit for every home. Before you commit, think about these key factors to help you decide if an RTU works for your space and lifestyle:

  • Yard space: If you have limited room between houses, a small backyard, or extensive landscaping you want to preserve, a rooftop unit helps keep your outdoor areas clear for patios, gardens, or play spaces.
  • Climate conditions: Rooftop systems are built to handle the weather, but extreme heat or frequent storms – like in parts of Florida or the South – can wear on performance over time. Homes in moderate or cooler climates may see more reliable efficiency.
  • Maintenance access: Keep in mind that rooftop units require roof access for routine maintenance, like filter changes or inspections. If your current system is in the attic, you may already be familiar with tight access points. However, rooftop systems can make it easier to overlook small issues, like debris buildup or blocked vents, until your seasonal service check rolls around.
  • Home layout and roof design: RTUs work best for single-story homes or those with flat or low-slope roofs. Steeply pitched or complex roofs can complicate both installation and long-term maintenance, and typically raise costs.
  • Get a professional opinion: Before moving forward, have a trusted HVAC professional inspect your roof structure, home layout, and cooling needs. They’ll help you weigh your options and make an informed choice for your home.

The Cost of a Rooftop Air Conditioner

Rooftop AC units typically range from $2,500 to over $10,000, depending on the model and features. Basic units start around $2,500 to $4,500, while mid-range options run between $4,500 and $7,000. High-end systems with advanced features can exceed $10,000.

Upgrades like higher SEER ratings for better energy efficiency can add 10-20% to the cost but help lower your energy bills over time. Features like smart technology, advanced air filtration, and zoning can add another 5-15% but offer added convenience, comfort, and air quality benefits.