Choosing the Right Hot Water Heater for Commercial Use

choosing the right hot water heater for commercial use

Choosing the right hot water heater for your business isn’t exactly a walk in the park, is it? We know all too well how crucial this decision is, especially when you think about how commercial setups tend to chug through up to 25% more energy just to keep that water warm compared to our homes.

Don’t stress though – our guide’s here to help you navigate through the ins and outs of commercial hot water systems. So grab yourself a cuppa, have a read, and find out which system will be your best mate in terms of heating prowess and being kind on your wallet!

Key Takeaways

  • Think about your business type and how much hot water you need to pick the right heater.
  • Look at costs, both what you’ll pay upfront and it will cost over time.
  • Check if you have enough room for the system you want.
  • Choose between gas or electric heaters based on which is cheaper to run for your business.
  • Decide if one big heater or a few small ones are best for meeting your hot water needs.

Factors to Consider When Choosing a Commercial Hot Water Heater

When choosing a commercial hot water heater, it’s important to consider the type of business, budget, frequency of use, peak use frequency, efficiency, available space and power source.

These factors will help determine the most suitable hot water heater for your commercial needs.

Type of business

We know every business is unique, with its own hot water needs. A cafe or restaurant will use a lot more hot water than an office space. This means they’ll often go for big commercial boilers that can handle washing dishes and making coffee non-stop.

But offices might just need a small system for the occasional tea or hand wash. It’s important to think about what your business does day-to-day when picking out your commercial water heater.

Your choice affects costs too, especially if you pick energy-efficient options like heat pump or solar heaters which might have rebates available. These can cut down long-term expenses but may cost more upfront.

So, we weigh up both initial price and ongoing savings to find what works best for our budgets and our businesses’ daily routines.


Considering your budget is crucial when choosing a commercial hot water heater. Different types of heaters come with varying costs, and it’s essential to find one that fits within your financial plan.

Evaluate the long-term running expenses as well, including energy efficiency and maintenance costs, to ensure you select an option that not only suits your initial budget but also remains cost-effective in the future.

When deciding on a system for commercial use, we know it’s important to weigh the upfront investment against ongoing operating expenses. This approach helps in finding a hot water heater solution that is both efficient and financially sustainable for your business.

Frequency of use

When choosing a commercial hot water heater, it’s important to consider how often you’ll need hot water. The frequency of use will impact the type and size of the system that best suits your business needs.

For instance, if your business requires hot water consistently throughout the day, a tankless system might be more efficient in meeting instant hot water demand without running out.

On the other hand, businesses with intermittent or lower hot water demands may find a storage tank system sufficient while being cost-effective for their usage patterns.

It’s essential to assess your business’s typical daily hot water requirements and peak usage times to ensure that the selected commercial water heating unit can meet these demands efficiently.

Peak use frequency

When considering the peak use frequency of your commercial hot water heater, it’s crucial to analyse the times when you have the highest demand for hot water. Understanding these peak usage periods helps in selecting a system that can meet these demands efficiently while avoiding any disruptions.

By assessing your business’s specific high-demand periods, whether during operational hours or at particular times of the day, you can ensure that your chosen hot water system aligns with these needs and avoids any potential shortages.

Ensuring that your commercial hot water heater can handle peak use frequency is vital for maintaining smooth operations and meeting customer needs during high-demand periods, ultimately contributing to an efficient and reliable business environment.


Efficiency is a crucial factor when choosing a commercial hot water heater. It can significantly impact your hot water costs and the overall effectiveness of the system. Look for energy-efficient options to reduce operating costs and environmental impact, such as solar, heat pump, or condensing water heaters.

Consider the available rebates or incentives for energy-efficient hot water systems in Australia to make an informed decision that benefits both your business and the environment.

Available space

Consider the space where you want to install the water heater. Measure the area and ensure that it can accommodate the type of commercial water heater you choose. This will help you avoid any issues with installation and ensure that the unit fits perfectly within your available space, making efficient use of it.

When selecting a commercial water heater, remember to check the dimensions and specifications provided by the manufacturer. It is crucial for ensuring a hassle-free installation process and optimal functioning of your chosen hot water system.

Power source

When choosing a hot water heater for your business, the power source is an important consideration. The power source can be gas, electric, solar, heat pump, or condensing. Each type has different energy efficiency and cost considerations.

Gas heaters tend to have lower operating costs but may require more upfront investment. Electric heaters are simpler to install and have lower maintenance costs but may have higher operating expenses.

Solar, heat pump, and condensing heaters are known for their energy efficiency and environmental friendliness but may require a larger initial investment. When considering the power source for your commercial water heater, it’s essential to weigh the long-term operational costs alongside the initial installation expenses to find the most suitable option for your business needs.

Multiple types

When considering the multiple types of commercial water heaters, it’s important to understand the options available for your business. Tankless water heaters are efficient and space-saving, making them a good choice for businesses with limited room.

On the other hand, storage tank water heaters are reliable and can handle high demand scenarios well, suitable for businesses with consistent hot water needs. Solar water heaters are eco-friendly and can lead to long-term cost savings but may have higher upfront installation costs.

Heat pumps and condensing water heaters offer great energy efficiency but may require specific conditions for optimal performance.

Tank details

Now let’s delve into some specific details about the different types of tanks you might come across. When choosing a commercial hot water heater, it’s essential to consider tank details like material, insulation quality, and corrosion resistance.

Steel tanks are durable but can be prone to rusting over time, while glass-lined tanks offer better protection from corrosion. Insulation thickness determines heat retention and energy efficiency, so be sure to look for models with adequate insulation.

Additionally, consider whether you need extra features like adjustable thermostats or self-cleaning mechanisms when selecting your commercial hot water tank.

When determining the correct size for your commercial hot water tank, ensure that you account for peak usage times and any future growth in your business. Consider factors such as the number of bathrooms or sinks that will require hot water simultaneously and calculate the required storage capacity based on this information.

Correct sizing

When choosing a commercial water heater, it’s crucial to get the correct sizing. Consider the size of your business and the peak times when hot water usage is at its highest. Factor in the available space for installation and whether you’ll need multiple smaller units or one large unit to meet your needs efficiently.

Gas and electric water heaters also differ in terms of sizing requirements. It’s essential to calculate the right size based on your specific business use. Getting this right ensures that you have enough hot water while avoiding unnecessary energy costs associated with an oversized system.

Types of Commercial Water Heaters

Tankless, storage tank, solar, heat pump, and condensing are just a few options for commercial water heaters. To learn more about the benefits and drawbacks of each type,

keep reading!


When considering a commercial hot water heater, tankless systems offer on-demand heating without the need for a storage tank. This means you get hot water instantly and only when you need it,

types of commercial water heaters

potentially saving energy and money in the long run.

These systems are compact and can be installed closer to the point of use, which might suit businesses with limited space or varied hot water demands.

Tankless systems provide continuous hot water supply, but they may have limitations based on simultaneous usage and required flow rates. It’s important to consider your business’s specific needs and consult with a professional to determine if a tankless system is the right choice for your commercial setting.

Storage tank

Moving on to the next option, a storage tank is a traditional yet reliable choice for commercial hot water heaters. These systems store and heat a large volume of water, making it readily available when needed.

They are generally powered by gas or electricity and can provide hot water for high-demand businesses such as hotels, restaurants, and manufacturing facilities.

When deciding on a storage tank water heater, consider the size of your business and the peak usage times to ensure you have an adequate supply of hot water. Additionally, factor in installation space and efficiency ratings to make an informed decision based on your specific commercial needs.


Now let’s talk about solar water heaters. Solar water heaters are a great option for commercial use if you want to reduce your energy bills and environmental impact. They harness the power of the sun to heat water, making them highly energy-efficient and cost-effective in the long run.

With various incentives and rebate programs available, installing a solar hot water system can also bring financial benefits to businesses. Keep in mind that while solar water heaters have lower operating costs, they may require a larger upfront investment compared to traditional options.

Heat pump

When it comes to commercial hot water systems, another option to consider is the heat pump. This type of system operates by extracting heat from the air and transferring it into the water.

It’s an energy-efficient choice that can help cut down on operating costs in the long run, making it a great investment for businesses looking to save on utility bills.

Heat pumps are known for their environmental friendliness and reliability, making them a popular choice among commercial property owners. They are particularly ideal for businesses in Australia, given the country’s climate conditions and drive towards sustainability.


Condensing hot water heaters are energy efficient. They capture and use heat from exhaust gases to heat water, saving energy and money in the long run. These systems can be more expensive to install but have lower operating costs, making them a good investment over time.

Plus, they produce lower greenhouse gas emissions which is better for the environment.

Choosing a condensing hot water heater could mean long-term savings on operating costs. These systems are more environmentally friendly with lower greenhouse gas emissions while efficiently heating your commercial space’s water.

Benefits and Drawbacks of Different Types

We understand that choosing the right commercial hot water heater is pivotal for the efficiency and functionality of your business. Each option has its own set of advantages and limitations, which we’ve broken down to help you make an informed decision.

Tankless Water Heaters


  1. They’re energy-efficient, as they heat water on demand, leading to lower running costs.
  2. These units have a longer lifespan and take up less space than their tank counterparts.


  1. High initial investment may be a deterrent, although it can be offset by energy savings over time.
  2. May struggle to keep up with high demand, necessitating multiple units for larger businesses.

Storage Tank Water Heaters


  1. Provide a large reservoir of hot water, ideal for businesses with simultaneous usage needs.
  2.  Generally less expensive to purchase and install, allowing for a lower upfront cost.


  1. They can be less energy-efficient due to standby heat loss from the stored water.
  2. A bulky footprint requires more space, which might not be available in all commercial settings.

Solar Water Heaters


  1. Utilise renewable energy, reducing running costs and environmental impact.
  2. Government incentives and rebates can reduce initial costs and encourage eco-friendly practices.


  1. Performance can be limited in areas with less sunshine or during periods of inclement weather.
  2. Initial installation and setup can be costly and complex.

Heat Pump Water Heaters


  1. Offer great energy efficiency by using heat from the air or ground, leading to significant cost savings.
  2. Can provide both heating and cooling to the premises, making them versatile.


  1. They are less effective in colder climates or during winter months.
  2. Require a larger upfront investment and sufficient space for installation.

Condensing Water Heaters


  1. Extremely efficient for businesses using natural gas, as they capture and reuse exhaust gases.
  2. Ideal for large hot water demands, providing consistent hot water supply.


  1. High initial costs can be a barrier for some businesses.
  2. They require access to natural gas and proper venting arrangements.

Correct Sizing for Commercial Water Heaters

When it comes to sizing a commercial water heater, there are several factors to consider such as the type of power source (gas vs electric) and whether multiple units or one large

correct sizing for commercial water heaters

unit is more efficient for your business. These considerations will help ensure that you choose the right size and type of water heater for your commercial needs.

Factors to consider

When choosing a commercial hot water heater, it’s important to consider several factors:

  1. The type of business you have and its specific hot water requirements.
  2. Your budget for the initial purchase and long – term operating costs.
  3. How frequently the hot water heater will be used and at what times during the day.
  4. The level of energy efficiency required for your business needs.
  5. The amount of available space for installing the hot water heater.
  6. The power source available at your location for the hot water heater.
  7. Whether you need multiple types of hot water heaters for different areas in your business.
  8. Details regarding the tank, including material, size, and insulation.
  9. Choosing the correct sizing of the commercial hot water heater to meet your needs effectively.

Gas vs electric

When deciding between gas and electric hot water heaters for your commercial use, it’s essential to consider the operating costs and energy efficiency. Gas heaters often have lower operating costs compared to electric ones, making them a more cost-effective choice over time. However, electric heaters can be more energy-efficient and environmentally friendly, especially when powered by renewable energy sources like solar or wind.

Electric hot water systems also tend to have lower upfront installation costs and require less maintenance than gas systems. On the other hand, gas water heaters generally provide faster recovery times and better performance during peak usage periods. When choosing between gas and electric options for your commercial hot water needs, it’s crucial to weigh these factors against your business requirements and budget constraints.

Multiple vs one large

When deciding between multiple smaller hot water heaters or one large unit for your commercial space, it’s important to consider the specific needs of your business. Multiple units can provide redundancy and flexibility, allowing you to heat different areas independently.

However, a single large unit may be more cost-effective and easier to maintain. Consider factors such as available space, peak usage times, and budget constraints when making this decision.

Improve Efficiency and Reduce Costs with the Right Hot Water Heater – Get a Free Quote Today!

Choosing the right hot water heater for commercial use requires careful consideration of factors such as business type, budget, and frequency of use. It’s important to weigh the benefits and drawbacks of different types like tankless, storage tank, solar, heat pump, and condensing water heaters.

Correct sizing is crucial and depends on various factors including gas vs electric and whether multiple units or one large unit is more suitable. By evaluating these aspects thoroughly, businesses can select an efficient hot water system that meets their specific needs while maximising energy savings.