Packaged terminal heat pumps (PTHPs) are installed on exterior walls and do not require refrigerant lines, expanding the pool of available installation contractors. They typically offer models with lower maximum heating or cooling BTU output compared to mini-split heat pumps, making them an ideal option for spaces that have lower peak heating and cooling loads (e.g. smaller or very well-insulated spaces) where a mini-split fan coil may be oversized for the space.

Note that old-school packaged terminal air conditioners (PTACs) also provide heating, but they use electric resistance and so are considerably less efficient.

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