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Commercial Water Heaters: What You Need to Know

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  • Post last modified:August 27, 2023

If you own or operate a business, you know the importance of having a reliable hot water supply. From restaurants and hospitals to manufacturing plants and hotels, commercial water heaters are essential in various industries. However, with so many options available, it can be overwhelming to choose the right one for your business. Additionally, proper installation and maintenance are crucial for optimal performance and longevity.

In this article, I will provide an overview of commercial water heaters and offer guidance on selecting, installing, and maintaining them. We’ll cover different types of water heaters, energy-efficient options, sizing guidelines, and more. By the end of this article, you’ll have a better understanding of what you need to know to make an informed decision about your commercial water heating needs.

Key Takeaways:

  • Commercial water heaters are essential in various industries, such as restaurants, healthcare, and manufacturing.
  • Choosing the right water heater, proper installation, and regular maintenance are crucial for optimal performance and longevity.
  • Consider factors such as type, energy efficiency, capacity, and budget when selecting a commercial water heater.

Understanding Commercial Water Heater Types

Commercial water heaters come in different types, each with its own set of advantages and drawbacks. The two main types of commercial water heaters are conventional tank-based heaters and tankless heaters.

Conventional Tank-Based Heaters

Conventional tank-based heaters are the most common type of commercial water heaters. They use a large tank to store hot water, which is constantly heated and maintained at a certain temperature. The tank size can range from 30 to over 100 gallons, depending on the size and demand of the business.

The main advantage of tank-based heaters is their low upfront cost. They are also easy to install and can supply a large amount of hot water to multiple fixtures at once.

However, they have several drawbacks. The stored hot water can run out during peak demand, causing a break in hot water supply. They also consume more energy since they constantly heat the water, even when not in use. Additionally, the tank can take up a substantial amount of space.

Tankless Heaters

Tankless water heaters, also known as on-demand heaters, do not store hot water. Instead, they heat water as it passes through the unit. They are typically smaller than tank-based heaters and can be wall-mounted for space-saving.

The main advantage of tankless heaters is their energy efficiency. They only heat water when needed, which helps save energy and money on utility bills. They also provide an unlimited supply of hot water, as long as there is a sufficient flow rate.

However, they also have some drawbacks. The initial cost is higher than conventional heaters. They may also require additional gas or electrical upgrades to support their demands. Lastly, they may not be suitable for high-demand businesses and may require multiple units to meet the demand.

Commercial Water Heaters

“The two main types of commercial water heaters are conventional tank-based heaters and tankless heaters.”

  • Commercial Water Heaters: A crucial component for businesses to supply hot water to multiple fixtures at once.
  • Water Heater Types: The two main types of commercial water heaters are conventional tank-based heaters and tankless heaters.

Commercial Water Heater Installation: What to Consider

Installing a commercial water heater requires careful consideration of several factors to ensure optimal performance and longevity. As a professional journalist, I recommend following the guidelines below for proper installation:

Factor to Consider Guidelines
Location The water heater should be installed in a well-ventilated area with sufficient space around it for easy access and maintenance. It should be placed on a level surface to prevent damage due to tipping.
Size The size of the water heater should be based on the specific needs of the business, such as peak demand, occupancy, and usage patterns. Undersized heaters may not provide enough hot water, while oversized ones can result in energy wastage and increased operating costs.
Local Regulations It’s important to comply with local regulations regarding commercial water heater installation. This includes obtaining necessary permits, following safety codes, and adhering to installation guidelines provided by the manufacturer.

It’s crucial to hire a professional plumber or HVAC technician for the installation process. Improper installation can result in leaks, poor performance, and safety hazards. A licensed professional can ensure that the water heater is installed correctly and meets all necessary requirements.

Water Heater Installation

Commercial Water Heater Maintenance Tips

Regular maintenance is critical to ensure the optimal performance and longevity of commercial water heaters. Here are a few essential tips for maintaining your commercial water heater:

  1. Check the thermostat: Make sure the thermostat setting is at the recommended temperature, typically between 120-130°F for commercial water heaters. Incorrect temperature settings can lead to higher energy bills and potential damage to the tank.
  2. Flush the tank: Sediment buildup can reduce the efficiency of the water heater and cause damage to the tank. Flushing the tank regularly helps to remove any sediment and maintain optimal efficiency.
  3. Inspect the anode rod: The anode rod is responsible for preventing corrosion in the tank. Check the anode rod regularly and replace it if necessary to prolong the lifespan of the water heater.
  4. Address leaks promptly: Even minor leaks can lead to significant water damage and increase energy bills. Address any leaks promptly to avoid costly repairs and replacements.

It is also important to hire a professional for regular inspections and maintenance. A qualified technician can identify potential issues early and ensure that your water heater is operating efficiently.

Water Heater Maintenance

“Regular maintenance is critical to ensure the optimal performance and longevity of commercial water heaters.”

By following these simple maintenance tips and working with a trusted professional, you can ensure that your commercial water heater is operating efficiently, saving energy, and providing reliable hot water when you need it.

Advantages of Energy Efficient Commercial Water Heaters

When it comes to choosing a commercial water heater, energy efficiency should be a top priority. Not only does an energy-efficient water heater save your business money in the long run, but it also has a positive impact on the environment. Here are some of the advantages of energy-efficient commercial water heaters:

Lower Operating Costs

Energy-efficient commercial water heaters consume less energy, resulting in lower operating costs. By reducing the amount of energy needed to heat water, your business can save a significant amount of money over time. Plus, using less energy means your water heater will emit fewer greenhouse gases, making it a more environmentally-friendly choice.

Improved Performance

Energy-efficient commercial water heaters are designed to deliver reliable and consistent hot water, with improved performance compared to traditional models. They heat water more quickly and efficiently, which means you won’t experience a shortage of hot water during peak demand periods.

Longer Lifespan

Energy-efficient commercial water heaters are built to last, with a longer lifespan than traditional models. This is because they have less wear and tear on the components, thanks to their efficient operation. By investing in an energy-efficient water heater, you can save money on replacement costs in the long run.

Environmental Benefits

By using less energy to heat water, energy-efficient commercial water heaters have a positive impact on the environment. They emit fewer greenhouse gases, which helps to reduce your business’s carbon footprint. Plus, many energy-efficient models are built with eco-friendly materials, making them a more sustainable choice overall.

When choosing a commercial water heater, consider the benefits of energy efficiency. Investing in an energy-efficient model can help your business save money, improve performance, and reduce your environmental impact.

Energy Efficient Water Heaters

Exploring the Benefits of Tankless Commercial Water Heaters

When it comes to commercial water heaters, tankless water heaters have gained popularity over the years due to their energy-efficient technology and suitability for various commercial applications. Unlike conventional tank-based heaters that store and heat a fixed volume of water, tankless heaters heat water on-demand, providing endless hot water supply. This makes them ideal for businesses that require a constant supply of hot water, such as hotels, restaurants, and hospitals.

One of the main advantages of tankless commercial water heaters is their energy-saving capabilities. As they heat water on-demand, they do not have to constantly maintain a large volume of hot water, which can lead to significant energy savings. Additionally, tankless heaters have a longer lifespan compared to conventional heaters, with an average of 20 years compared to 10-15 years for tank-based heaters.

Tankless water heaters also take up less space, making them suitable for businesses with limited space. They can be mounted on the wall, freeing up valuable floor space that can be used for other purposes. Moreover, tankless heaters offer greater flexibility in terms of installation location, as they do not require a large storage tank.

Advantages Disadvantages
– Energy-efficient – Higher upfront cost
– Endless hot water supply – Limited flow rate
– Longer lifespan – Requires professional installation
– Saves space

However, tankless commercial water heaters have some disadvantages that business owners should consider before making a decision. They have a higher upfront cost compared to conventional water heaters, and may require a larger upfront investment. Additionally, tankless heaters have a limited flow rate, which means they may not be suitable for high-demand applications. Finally, they require professional installation to ensure optimal performance and safety.

Despite their disadvantages, tankless commercial water heaters offer a range of benefits that can help businesses save money and energy while ensuring a steady supply of hot water. When evaluating water heater options, businesses should consider factors such as demand, energy efficiency, and installation requirements to determine whether a tankless water heater is the right choice for their specific needs.

tankless water heater installation

Commercial Water Heater Sizing Guide

Choosing the right size for a commercial water heater is crucial for optimal performance. Factors such as peak demand, recovery rate, and storage capacity should be carefully considered to ensure the water heater can meet the hot water needs of the business.

Peak demand refers to the maximum amount of hot water needed at any given time. This can vary depending on the type of business and the number of occupants. Recovery rate is the amount of time it takes for the water heater to reheat the water after it has been depleted. Storage capacity refers to the amount of hot water the water heater can hold at any given time.

It is important to note that oversizing a water heater can lead to unnecessary energy consumption and higher costs. Undersizing, on the other hand, can lead to insufficient hot water supply and disrupt business operations.

Consulting with a professional plumber or water heater installer can ensure accurate sizing and proper installation. They can also recommend the best type of water heater based on the business’s hot water needs and budget.

Overall, proper sizing and installation are key factors for a commercial water heater to function efficiently and reliably.

Commercial Water Heater Sizing

Choosing the Right Commercial Water Heater for Your Business

When selecting a commercial water heater, there are several key factors to consider. The right choice depends on a variety of factors, including your business type, hot water demand, and budget constraints. By keeping these key considerations in mind, you can choose the perfect commercial water heater for your business needs.

Fuel Type

The first consideration is fuel type. The two most common options for commercial water heaters are natural gas and electricity. Natural gas is typically the most cost-effective option because it is less expensive than electricity. However, if you don’t have access to natural gas, electricity may be a better choice for your business.


Another important factor to consider is capacity. You need to choose a commercial water heater that can meet your business’s hot water demand. To determine the appropriate capacity, you need to calculate the peak hourly demand of your business. The peak hourly demand is the maximum amount of hot water your business requires during the busiest hour of the day.

It’s important to choose a commercial water heater with enough capacity to handle the peak demand. If your water heater is too small, you may experience a shortage of hot water during peak demand times.

Efficiency Ratings

Energy efficiency is another important consideration when choosing a commercial water heater. An energy-efficient water heater can help reduce your energy bills and lower your carbon footprint. When shopping for a commercial water heater, look for the Energy Star label. The Energy Star label indicates that the water heater meets or exceeds energy efficiency guidelines set by the U.S. Environmental Protection Agency.

Budget Constraints

Finally, it’s important to consider your budget when selecting a commercial water heater. You want to choose a water heater that meets your business’s hot water needs without breaking the bank. Keep in mind that while a higher-efficiency water heater may cost more upfront, it could save you money in the long run through reduced energy bills.

Choosing the right commercial water heater requires careful consideration of several key factors. By selecting the appropriate fuel type, capacity, and efficiency ratings, you can save money and ensure your business has reliable access to hot water.

Choosing the right Commercial Water Heater

Understanding the Importance of Commercial Water Heaters

As a professional in the industry, I understand the crucial role that commercial water heaters play in various sectors. Whether it’s a hotel providing hot showers for guests or a restaurant needing hot water for cooking and cleaning, reliable hot water supply is essential to keeping businesses running smoothly.

Even in healthcare and manufacturing industries, hot water is necessary for sanitization and production processes. Without a properly functioning commercial water heater, businesses may suffer from interrupted operations, dissatisfied customers or clients, and decreased productivity.

That’s why it’s important to invest in a high-quality commercial water heater and maintain it regularly. By doing so, you’ll ensure that your business has the hot water it needs to meet its demands.

Commercial Water Heater

When choosing a commercial water heater, it’s important to consider factors such as capacity, efficiency ratings, and fuel type. Consulting with a professional can help you make the right choice for your business’s specific needs and budget constraints.

Regular maintenance is equally important to ensure optimal performance and prolong the lifespan of your commercial water heater. This includes regular inspections, flushing, and addressing any issues promptly.

By understanding the importance of commercial water heaters and taking the necessary steps to choose and maintain them properly, businesses can ensure a steady supply of hot water and avoid costly interruptions.

Key Factors to Consider in Commercial Water Heater Maintenance

Regular maintenance is vital for ensuring the optimal performance and longevity of commercial water heaters. In addition to reducing the risk of breakdowns and expensive repairs, proper maintenance can also help improve energy efficiency and save on operating costs.


Regular inspections are an essential part of commercial water heater maintenance. Inspecting the unit helps identify any potential issues before they escalate into major problems. During an inspection, it is important to check for leaks, signs of corrosion, and any damage to valves and pipes.


Flushing the water heater tank is another critical maintenance task. Over time, mineral deposits and sediment can accumulate at the bottom of the tank, decreasing its efficiency and performance. Flushing the tank removes these deposits and ensures that the heating elements function properly.

Addressing Common Issues

Several common issues can affect commercial water heaters. For example, a faulty thermostat can cause the water temperature to fluctuate and affect the efficiency of the unit. Other common issues include a malfunctioning pilot light, a clogged burner, and a damaged heating element. It is important to address these issues promptly to prevent further damage to the unit.

By following these maintenance tips, you can ensure that your commercial water heater operates safely and reliably, while also reducing the risk of costly repairs. Remember to hire a qualified professional to perform any maintenance tasks if you are not experienced with handling water heaters.

Water Heater Maintenance

“Regular maintenance is vital for ensuring the optimal performance and longevity of commercial water heaters”


After researching and writing about commercial water heaters, I can confidently say that choosing the right water heater and maintaining it properly is essential for any business. With the variety of water heater types available, including conventional tank-based heaters and tankless heaters, it is important to consider factors such as installation requirements, energy efficiency, and sizing. A professional installation and regular maintenance are crucial for optimal performance, energy savings, and longevity of your water heater.

When selecting a commercial water heater, consider your business’ specific needs and constraints. Factors such as fuel type, capacity, efficiency ratings, and budget will all play a role in determining the best water heater for your business. Don’t forget to take into account the impact of reliable hot water on your business operations in industries such as hospitality, restaurants, healthcare, and manufacturing.

Stay Ahead of Water Heater Maintenance

Effective commercial water heater maintenance can save you time, money, and headaches. Regular inspections, flushing, and addressing issues promptly are essential in preventing costly breakdowns. By staying ahead of maintenance, you’ll be able to ensure optimal performance for your water heater and prevent any potential disruptions to your business.

Overall, commercial water heaters are a crucial investment for any business that requires hot water. By understanding the different types of water heaters, installation requirements, energy efficiency options, sizing, and maintenance, you’ll be equipped to make an informed decision and keep your water heater running smoothly.

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