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Their major difference is the size. Residential HVAC units are much smaller compared to commercial systems. Commercial HVAC systems are larger because they are generally employed to cool much larger spaces. Spaces like warehouses, department stores, and even medium-size businesses benefit from these larger systems Considering a residential HVAC  unit is typically smaller than the commercial one. There is no reason your residential unit cant be placed securely in your backyard  or another hidden place away from your family and guests. However, commercial units are usually installed on the roof of the building due to their large size and noise.