VRF systems, unlike conventional chiller-based systems, allow for varying degrees of cooling in more specific areas (because there are no large air handlers, only smaller indoor units), may supply hot water in a heat recovery configuration without affecting efficiency, and switch to heating mode (heat pump) during winter without additional equipment, all of which may allow for reduced energy consumption. Also, air handlers and large ducts are not used which can reduce the height above a dropped ceiling as well as structural impact as VRF uses smaller penetrations for refrigerant pipes instead of ducts