10 Best Commercial Tankless Water Heaters Today

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In Brief: Best Commercial Tankless Water Heaters

  1. Rinnai RL Model 
  2. Rinnai C199EN 
  3. Rheem RTGH-95DVLN 
  4. Rinnai RUC98iN Ultra Series 
  5. Rheem RTG-64XLN 
  6. Takagi T-K4-IN-NG 
  7. Rinnai RL Series HE+ 
  8. Rinnai RL Model
  9. Noritz NCC1991-DVLP 
  10. AO Smith ATI-540H-N 
How We Decided

17 products considered. 200+ reviews analyzed, 31 research hours spent, 15+ info. sources referred

More about our Methodology

There are a wide variety of tankless water heaters available in the market for residential usage.

However, there is a whole another segment of tankless water heaters designed specifically for commercial usage.

These commercial applications may include usage in restaurants, beauty salons, hospitals, etc. One has a wide variety of options to choose from when it comes to tankless water heaters.

Many brands of repute have created a separate commercial line of products to cater to this market. Moving away from the context of residential usage, commercial water heaters are a requirement in small businesses of many types.

Many businesses are transitioning to the tankless variety of water heating because of their lower maintenance costs and higher efficiency in the long run.

They are also much better at meeting higher, dynamic demand for hot water which is often the case in most commercial setups.

Comparison Table: Top Commercial Tankless Water Heaters

Product Flow Rate (GPM) Weight (lbs) Price

Rinnai RL Model Tankless Hot Water Heater: Indoor Installation

Rinnai RL Series Indoor Tankless Hot Water Heater / RL94IN /Natural Gas9.4 GPM, 9.4 GPM, RL94iN-Natural Gas/9.4 GPM

9.4 44.3 Check Price

Rinnai C199EN Commercial Condensing Tankless Water Heater

Rinnai C199EN Commercial Condensing Tankless Water Heater

9 71 Check Price

Rheem RTGH-95DVLN 9.5 GPM Indoor Direct Vent Tankless Natural Gas Water Heater

Rheem RTGH-95DVLN 9.5 GPM Indoor Direct Vent Tankless Natural Gas Water Heater

9.5 79 Check Price

Rinnai RUC98iN Ultra Series Natural Gas Tankless Water Heater

Rinnai RUC98iN Ultra Series Indoor Natural Gas Tankless Water Heater, Twin Pipe

9.8 82 Check Price

Rheem RTG-64XLN 6.4 GPM Low NOx Outdoor Tankless Natural Gas Water heater

Rheem RTG-64XLN 6.4 GPM Low NOx Outdoor Tankless Natural Gas Water heater

6.4 38 Check Price

Takagi T-K4-IN-NG Indoor Tankless Water Heater

Takagi T-K4-IN-NG Indoor Tankless Water Heater, Natural Gas

8 43 Check Price

Rinnai RL Series HE+ Tankless Hot Water Heater: Outdoor Installation

Rinnai RL Series HE+ Tankless Hot Water Heater: Outdoor Installation, RL94eN - Natural Gas/9.4 GPM, Large

9.4 44.3 Check Price

Rinnai RL Model Tankless Hot Water Heater: Outdoor Installation

Rinnai Outdoor Tankless Hot Water Heater / RL75eN / Natural Gas / 7.5 GPM, RL75eN-Natural

7.5 43.6 Check Price

Noritz NCC1991-DVLP Commercial Condensing Tankless Water Heater

Noritz NCC1991-ODNG 199,900 BTU Commercial Condensing Tankless Water Heater with Outdoor Mounted, Natural Gas

Not Listed 76.6 Check Price

AO Smith ATI-540H-N Condensing Residential/Light Commercial Tankless Heater

AO Smith ATI-540H-N Condensing Residential/Light Commercial Tankless Heater

9 59 Check Price
 

The following sections of this article take a deep dive into a buying guide for commercial tankless water heaters and the pros and cons of gas and electric models of the same.

A few other sections look at how to best use and maintain these tankless water heaters for long-lasting product life and a review of the top seven products in this category.

Reviews of Top Commercial Tankless Water Heaters

1.best overall rating

Rinnai RL Model Tankless Hot Water Heater: Indoor Installation

Rinnai RL Series Indoor Tankless Hot Water Heater / RL94IN /Natural Gas9.4 GPM, 9.4 GPM, RL94iN-Natural Gas/9.4 GPM

Rinnai Corporation, headquartered at Nagoya, Japan, is one of the leading manufacturers of multiple heating solutions in the United States.

It is almost a century-old organization founded way back in 1920 by Hidejiro Naito and Kanekichi Hayashi.

They have grown significantly in the tankless water heater space and currently have over 30 million Rinnai units installed worldwide.

This Rinnai tankless water heater model is made specifically for indoor installation and supports a hot water flow rate of 9.4 GPM.

The model is a part of the high-efficiency RL series and runs on natural gas. The unit is also equipped with circ-logic technology that allows setting recirculation patterns according to certain habits and optimizes the use of the unit.

The manufacturer guarantees that the unit can be used to support five plumbing appliances or outlets simultaneously at the temperature set by the user.

This tankless water heater also consistently delivers up to 40% energy savings. The space-saving design of the unit ensures that it can be mounted easily and optimally without being an eyesore.

The compact, interior-mount design vents directly outside and makes use of a concentric venting system. This means that the hot exhaust pipe is surrounded by the cool inlet pipe.

This reduces the risk of someone coming in contact with the hot pipe and getting injured. One of the notable features of this model is the Wi-Fi monitoring that alerts the user for conducting timely maintenance.

It also allows the unit to be controlled remotely when needed.

The unit weighs 44.3 lbs and the dimensions of the same are 14 x 10 x 23 inches. Some of the key USPs of this tankless water heater for commercial usage is listed below.

Key USPs

  • A high output flow rate of 9.4 GPM
  • Good energy savings of 40%
  • Recirculation technology for faster hot water delivery
  • Constant Wi-Fi monitoring
PROS:
  • Good value for money
  • Ease of installation is high
  • Good brand repute
CONS:
  • The warranty could be better

Check Reviews & Price on Amazon

2.best overall rating

Rinnai C199EN Commercial Condensing Tankless Water Heater

Rinnai C199EN Commercial Condensing Tankless Water Heater

This tankless water heater by Rinnai is built as a part of its commercial line of water heaters for businesses. It is commercial energy star certified and has a thermal efficiency of 96%.

It is able to provide an endless supply of hot water to the business instantly and consistently.

The heater is designed to be extremely compact so that it can easily be fitted into compact spaces without much hassle.

One of the notable features of this device is the maintenance alerts that keep updating whether the equipment is operating at optimal efficiency and is giving the best possible performance.

The manufacturer offers additional venting options for flexibility in installation. The heat exchanger which the unit is equipped with is designed for maximizing the life of the product and delivering the best possible value.

The tankless water heating unit is also Wi-Fi ready which greatly enhances the ease of use.

The warranty on this product is a commercial version that offers 8 years on the heat exchanger, 5 years on the parts and 2 years on reasonable labor.

The warranty on the heat exchanger can also be measured in terms of hours of operation i.e. 12,000 operating hours.

The unit weighs 71 lbs and the dimensions of the same are 26 x 10 x 18.5 inches. Some of the key USPs of this commercial tankless water heater is listed below.

Key USPs

  • Comes with a standard Tankless Rack System™ which allows for a wall-mount or free standing
  • Multiple venting options for installation flexibility
  • Runs on natural gas and has a good thermal efficiency of 96%
PROS:
  • Energy efficient
  • Good warranty
  • Good brand reputation
CONS:

Check Reviews & Price on Amazon

3.best overall rating

Rheem RTGH-95DVLN 9.5 GPM Indoor Direct Vent Tankless Natural Gas Water Heater

Rheem RTGH-95DVLN 9.5 GPM Indoor Direct Vent Tankless Natural Gas Water Heater

Rheem Manufacturing Company is headquartered at Atlanta, Georgia, United States. They are known for their comprehensive lines of residential and commercial water heaters.

The company is a subsidiary of Paloma Industries and also sells products under the Ruud brand name. The company was founded in 1925 by Richard Rheem, Donald Rheem, and Edwin Ruud.

This Rheem unit features a stainless steel condensing heat exchanger and makes use of natural gas for heating water. The manufacturers claim an efficiency of 94%. This number is backed by third-party testing done by AHRI.

There are intelligent electronic controls which allow for such a high efficiency during operations.

This is an ultra-low NOx model of tankless water heaters that ensures the emissions are minimized. All Rheem products, including this unit, are tested rigorously to meet the industry standards for quality and reliability.

The water heater has a digital display that shows the temperature setting and maintenance codes. There is a self-diagnostic system which allows for easy installation and service.

The venting system is a two-pipe direct vent made of PVC.

The unit weighs 79 lbs and the dimensions of the same are 18.5 x 9.8 x 27.5 inches. Some of the key USPs of this tankless water heater for commercial usage is listed below.

Key USPs

  • High altitude capability – can work at 9,840 ft. elevation above sea level
  • Comes with a digital remote controller
  • Kit includes 10 feet of thermostat wire
  • Freeze protection for temperatures as low as -30 °F
  • Overheat film wrap (OFW), EZ-Link cable included for linking multiple units
PROS:
  • Good brand reputation
  • Great performance
  • Long-lasting hardware
  • No startup delay in getting hot water
CONS:
  • Installation is a bit of a hassle
  • A bit on the heavier side

Check Reviews & Price on Amazon

4.best overall rating

Rinnai RUC98iN Ultra Series Natural Gas Tankless Water Heater

Rinnai RUC98iN Ultra Series Indoor Natural Gas Tankless Water Heater, Twin Pipe

This Rinnai tankless water heater is a gas model that makes use of natural gas to get the water heater. The ‘98′ in the name of the water heater is indicative of its high hot water output rate of 9.8 GPM.

The unit offers a concentric or PVC venting option. The concentric design is safer and a space optimizer. The energy-saving factor for this unit varies from 0.92 to 0.96.

The design is extremely compact allowing for an easier indoor installation. The manufacturers guarantee ultra-low NOx emissions. The maximum power output for this tankless water heater is 199,000 BTUs.

The thermal efficiency of this tankless water heater is a whopping 95% meaning a lot of savings in terms of gas bills. Electronic ignition is one of the other features of this unit.

The unit weighs 82 lbs and the dimensions of the same are 10 x 18.5 x 26 inches. Some of the key USPs of this tankless water heater for commercial usage is listed below.

Key USPs

  • Commercial output temperature range of 98 °F to 185 °F
  • Gas rate input range of 15,200 to 199,000 BTUs per hour
  • 95% thermal efficiency, Energy Star certified
  • The commercial warranty offered – 5 years on heat exchanger, 5 years on parts, and 1 year on labor
PROS:
  • Easy for self-installation
  • Works as expected
  • Able to keep up with the load
  • Quickly provides hot water
  • Noiseless operations
CONS:
  • Customers expect a higher temperature range

Check Reviews & Price on Amazon

5.best overall rating

Rheem RTG-64XLN 6.4 GPM Low NOx Outdoor Tankless Natural Gas Water heater

Rheem RTG-64XLN 6.4 GPM Low NOx Outdoor Tankless Natural Gas Water heater

This tankless water heater by Rheem runs on natural gas and is designed specifically for outdoor installation. The hot water output rate is 6.4 GPM at a 35-degree rise.

The kit that comes with this tankless unit includes a UMC-117 remote controller and 10 feet of thermostat wire. This product is a low NOx version.

It features the next generation burner technology for optimal utilization of gas and getting the most out of the device.

The space-saver design ensures that the unit does not take up much of the valuable space even when it is to be installed outside. It is one of the industry’s best when it comes to detection of even the lowest input flow rates at 0.26 GPM.

This tankless unit has an energy factor of 0.82 and features an all-copper heat exchanger. The minimum activation flow rate for the device is 0.40 GPM. The unit weighs 38 lbs and the dimensions of the same are 14 x 10 x 26 inches.

Some of the key USPs of this tankless water heater for commercial usage is listed below.

  • Ultra-Low NOx burner meets SCAQMD rule 1146.2 requirements
  • High-altitude capability – can operate up to 9,840 ft. elevation above sea level
  • Overheat film wrap (OFW) to protect the heat exchanger
  • Comes with digital remote control and 10 feet of thermostat wire
PROS:
  • Highly sensitive to even low water pressures
  • Excellent performance
  • Lightweight
  • Good energy efficiency rating
  • Good quality components
  • Great design and easy to operate
  • Installation is easy
CONS:
  • Technical support could be better

Check Reviews & Price on Amazon

6.best overall rating

Takagi T-K4-IN-NG Indoor Tankless Water Heater

Takagi T-K4-IN-NG Indoor Tankless Water Heater, Natural Gas

Takagi is one of the well-known names in the tankless water heater industry and this tankless unit by Takagi is one of their best selling models that runs on natural gas.

The unit is designed specifically for indoor installation and it has the option to be converted into direct-vent. The power rating of the device ranges from 11,000 BTUs per hour to 190,000 BTUs per hour.

The energy factor of the device is 0.82 and this ensures that over the long term the gas bills are reduced.

The maximum flow rate of the heater is 8.0 GPM. The device is also equipped with adequate safety features that closely monitor the temperature of the device and make sure that it does not get overheated.

The unit is designed to be environment-friendly and can easily serve two to three bathrooms simultaneously. Since the model is for indoor installation, the design is ultra-compact and lightweight making it suitable for wall mounting.

The manufacturers claim that the unit can help in saving as much as 45% on their monthly gas bills owing to the automatic on and off feature.

The unit weighs 43 lbs and the dimensions of the same are 8.5 x 13.8 x 20.5 inches. Some of the key USPs of this tankless water heater for commercial usage is listed below.

Key USPs

  • Can operate with the water pressure range of 15 PSI to 150 PSI
  • The temperature range achievable by the unit varies between 99 °F to 167 °F
  • Sensors for turning the heater on and off according to water flow
PROS:
  • Rated high for a good temperature control feature
  • Good value for money
  • Easy to install
  • Great brand reputation
  • Easy on the pockets
CONS:
  • Customer support could be better

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7.best overall rating

Rinnai RL Series HE+ Tankless Hot Water Heater: Outdoor Installation

Rinnai RL Series HE+ Tankless Hot Water Heater: Outdoor Installation, RL94eN - Natural Gas/9.4 GPM, Large

This natural gas-based tankless water heater by Rinnai seems to be a popular product for small scale commercial applications. It is designed especially for outdoor installation and has an impressive flow rate of 9.4 GPM.

The unit has a recirculation technology that also allows for making the unit function at specific times according to the schedule set by the user.

Rinnai has also invested heavily in making all their products environment-friendly and this unit ensures that the user gets the water at the desired temperature consistently while also lowing the energy costs.

The design is extremely simple and space-saving.

The unit can comfortably accommodate five plumbing or hot water appliances simultaneously without compromising on the performance. It weighs around 44 lbs and the dimensions of the same are 14 x 10 x 23 inches.

Key USPs

  • A high hot water flow rate of 9.4 GPM
  • Recirculation technology for instant hot water
  • Great energy savings
PROS:
  • Great brand repute
  • Works as expected
  • Better performance compared to other brands
  • Ease of installation is high
  • Gets hot water instantly
CONS:
  • Customer service could be better

Check Reviews & Price on Amazon

8.best overall rating

Rinnai RL Model Tankless Hot Water Heater: Outdoor Installation

Rinnai Outdoor Tankless Hot Water Heater / RL75eN / Natural Gas / 7.5 GPM, RL75eN-Natural

This outdoor tankless water heater by Rinnai has an output flow rate of 7.5 GPM. It can easily supply hot water for fulfilling the needs of a small business. The flow rate varies according to the groundwater temperature.

The recirculation technology of this water heater allows for saving energy and cutting on the gas bills by syncing its operations with the user’s schedule.

The manufacturers boast of a warranty that surpasses that offered by the competition. It is a very compact unit that can be fitted easily without much hassle.

The energy factor on this tankless water heater is 0.82 and the uniform energy factor is 0.81.

The maximum and minimum power rating for this tankless water heater is 10,300 BTUs per hour and 180,000 BTUs per hour, respectively.

The unit is Wi-Fi enabled which means that the user can remotely operate the device and can perform operations like turning it on and off. This can greatly improve the savings and efficiency of the unit.

The device weighs about 44 lbs and the dimensions of the same are 14 x 10 x 23 inches.

Key USPs

  • Energy-star certified
  • Natural gas-operated, and high output flow rate of 7.5 GPM
  • Specially designed for outdoor installation only
PROS:
  • Easy installation process
  • Space saver design
  • Great value for money
  • Can service multiple faucets easily
CONS:

Check Reviews & Price on Amazon

9.best overall rating

Noritz NCC1991-DVLP 199,900 BTU Commercial Condensing Tankless Water Heater with Single Vent, Propane

Noritz NCC1991-ODNG 199,900 BTU Commercial Condensing Tankless Water Heater with Outdoor Mounted, Natural Gas

Noritz is one of the leading manufacturers of natural gas and propane tankless water heaters. They are headquartered at Fountain Valley, California, United States.

They sell their products by partnering with an exclusive and widespread network of wholesalers and contractors.

They offer a wide variety of models and also sell parts and accessories for adequate repairs and maintenance of these models.

This particular model of tankless water heater comes with a keypad and a thermostat display.

There is also a compatible remote controller included. One of the notable safety features of this unit is the freeze protection which allows the unit to work well and as expected even in the coldest of climates.

This unit is a part of the condensing series of water heaters that was launched by Noritz. They are the ultra-low NOx versions of the regular tankless water heaters.

The heat exchanger fitted in these devices is an innovative, dual design exchanger made of a fusion of copper and stainless steel.

This Noritz commercial tankless water heater weighs 77 lbs and the dimensions of the same are 13.8 x 10.6 x 22.3 inches. Some of the key USPs of the tankless water heater is listed below.

Key USPs

  • Unit boasts of a 0.90 uniform energy factor
  • Thermal efficiency of 94%
  • Minimum and Maximum power output of 16,000 BTU per hour and 199,900 BTU per hour respectively
  • Flow rates ranging from 0.5 GPM to 11.1 GPM
  • Temperature setting range varies from 100 °F to 185 °F in increments of five degrees Fahrenheit
PROS:
  • Good thermal efficiency
  • Can detect very low flow rates
  • Good range of temperature
CONS:

Check Reviews & Price on Amazon

10.best overall rating

AO Smith ATI-540H-N Condensing Residential/Light Commercial Tankless Heater

AO Smith ATI-540H-N Condensing Residential/Light Commercial Tankless Heater

A. O. Smith Corporation is one of the largest American manufacturer and marketer of water heaters in the USA. It was founded by Arthur Oliver Smith way back in 1874 at Milwaukee, Wisconsin, United States.

It is currently headed by Mr. Ajita G. Rajendra. They have developed a very diversified line of products over more than a century of existence.

These product lines include heat pumps, water purifiers, water heaters, storage tanks and a lot of varied categories within these to cater to all audiences.

This particular model of tankless water heater by AO Smith is well suited for light commercial purposes. The unit has a maximum hot water flow rate of 9.0 GPM.

The minimum and maximum power output for this unit is 13,000 BTUs per hour and 199,000 BTUs per hour respectively. The unit makes use of a commercial-grade copper alloy for the heat exchanger tubing.

The model has been tested for operations at an elevation as high as 10,100 ft. It has one of the industry’s leading warranty terms offering 15-year coverage.

One of the notable features of this unit is that it is equipped with Air-Fuel ratio (AFR) sensors. Some other safety features include exhaust and water temperature monitoring.

There is a fuse that cuts off the supply to the unit in case of overheating. The space-saving design allows for easy installation without being a drag on the aesthetic of the business.

This tankless water heater weighs 59 lbs and the dimensions of the same are 12.5 x 18.5 x 29.5 inches. Some of the key USPs of this commercial tankless water heater is listed below.

Key USPs

  • Uniform energy factor of 0.93
  • Can be used for recirculation systems
  • Easy link system capable of joining up to 4 units
  • Provides a multitude of installation options
  • Tested for high altitude performance
  • Makes use of condensing technology
PROS:
  • Estimated energy cost of $176 (very low)
  • Freeze, overheat and surge protection included
  • Easy to troubleshoot with diagnostic codes
  • Corrosion resistant heat exchanger
  • Automatic ignition
  • AHRI certified product
CONS:

Check Reviews & Price on Amazon

Buying Guide for Commercial Tankless Water Heater

Rinnai RL Series HE+ Tankless Hot Water Heater: Outdoor Installation

The following buying guide lists down some essential factors that should be taken into consideration when purchasing a tankless water heater for one’s business. This is a one-stop guide to answer all the queries that one might have regarding what parameters to focus on and what features to look for. These heaters can work well for supplying hot water to a small office, restaurants, hotels, salons, etc.

Size of the unit

One of the primary considerations when buying a commercial tankless water heater is the size, which is mainly an indicator of how many faucets or hot water outlets can the unit service simultaneously while maintaining a consistent temperature that is set by the user.

A very small unit will not be able to service the needs of the business satisfactorily whereas, a unit which is too large will cause unnecessary wastage of hot water and be a drag on the electricity or gas bills.

Since it is important to reduce the costs as much as possible in a business setup, one should carefully choose a model that will be a perfect fit for their requirements.

Requirements Specification

The type of model that one selects can vary significantly with even the most little changes in the working conditions of the unit.

Some businesses may require a hot water supply round the clock whereas there may be other business which only requires hot water for a few peak hours during the day.

The climatic condition in which the water heater unit is to be used also makes a difference in the choice of models. A gas tankless water heater is said to be more efficient than the electric variant.

Another consideration is also the location of the installation of the unit. The indoor installation of a tankless water heater will involve some kind of rework in terms of the wiring or venting.

An outdoor installation, on the other hand, will not involve as much rework but if the distance between the heater and the faucet that it is connected to is too much, it might affect the performance of the unit.

Therefore, all of these points should be focused on equally for getting the optimal setup in place.

Flow Rate

All tankless water heaters are equipped with a specification manual which gives details regarding the flow rate at different groundwater temperatures.

These flow rates vary according to the temperature raises which are required from the unit.

If a lot of outlets are operating simultaneously, the hot water can run out sooner and if such a situation is anticipated, taking a bigger unit is recommended.

Type

The most common question that one has to answer is whether they should go for an electric or a gas model of a tankless water heater.

There are a lot of aspects when making this decision and the following couple of sections of this article explore the pros and cons of each type.

The gas models are typically more efficient but they are also costlier since they require venting.

For outdoor installations, gas models are better whereas if the space considerations are too significant for indoor installation, electric models are better.

Warranty

Tankless water heaters are a long term investment and tend to last for over twenty years with proper care and maintenance.

This makes it important to choose a model with a good warranty as one does not prefer investing a lot of money in repairs or replacement in case the product breaks down unexpectedly.

The parts for these models are not available easily and therefore, it is essential to make sure that the warranty in place covers all sorts of issues that may arise. Most models these days come with very good warranty terms.

Customer Experience

This is one of the crucial considerations as one can look at a wide variety of models and get confused about the kind of model which will work best for them.

All the available various kinds are competent and have a host of different features that are extremely useful and essential for making the user’s life easy.

When this is the case, it often makes sense to look at the experiences of other customers and have a look at the reviews that they have left for the specific models.

This provides a better insight into the real-time performance of the unit and gives a fair idea about what to expect in terms of quality and service.

Apart from these factors, the brand reputation and price factors also play into the decision of purchasing a commercial tankless water heater.

Most often, the purchase has to happen within a specified budget and this has to be balanced against getting a good quality product.

Therefore, the price-quality tradeoff is an important one. Choosing a tankless water heater of a good brand is usually a good starting point.

Benefits and Limitations of Gas Commercial Tankless Water Heater

Rinnai RL94IN, 9.4 GPM, RL94iN-Natural Gas/ 9.4 GPM

Some of the benefits of using a gas tankless water heater for commercial applications are listed below.

Higher Capacity

A tankless gas water heater has a greater capacity as compared to electric models. They can achieve better temperature raises for the same groundwater temperature as opposed to electric tankless models.

Better Efficiency in Heating

A gas tankless water heater will be able to heat the water in a much more efficient manner than an electric model when the water being supplied to both is at the same temperature.

The utilization of gas is much more optimized than electricity and it will cost less to heat the water using a gas model than the electric model.

Availability is Easier

The natural gas or propane availability is much more stable and uninterrupted as compared to the availability of electricity.

Most regions cannot guarantee a steady supply of electricity and at the slightest chance of power outage or power surges, the ability of the unit to supply hot water gets compromised.

In contrast, a gas supply line is much more reliable and unaffected by negative externalities. It will take a huge natural disaster to affect the supply of gas to a business.

Some of the limitations of using a gas tankless water heater for commercial applications are listed below.

Venting Requirements

A gas tankless water heater has extensive venting requirements in most cases. The unit should have a proper inlet and outlet pipes connected to ensure that the required oxygen and gas are supplied sufficiently.

These venting requirements take up a lot of space and can prove to displease a customer aesthetically if the installation is indoors.

It will be difficult to install a gas tankless water heater indoors without changing the indoor configuration.

Safety Hazard

A gas leak can be a very dangerous safety hazard, especially if the unit is installed indoors. The other important safety consideration is also the NOx emissions that are a part of every gas tankless water heater.

When the heater is installed indoors, a proper flue system has to be in place to ensure that all these emissions, however low they may be, are carried outside safely.

Costs of Installation

As mentioned previously, the gas models require a proper ventilation system. This means that equipment specific to each model has to be purchased to ensure that the unit operates safely.

It is also recommended that only licensed technicians are commissioned to carry out the installation process. All of these costs significantly increase the effective price of a gas model as opposed to an electric model.

Benefits and Limitations of Electric Commercial Tankless Water Heater

Some of the benefits of using an electric tankless water heater for commercial applications are listed below.

Good for Smaller Applications

Electric models of water heaters are generally better for point of use applications, which is the need in most business setups. If the hot water requirement is not very high, an electric model will work well in most setups.

This will also ensure that the business does not lose money unnecessarily by making use of a unit with a capacity that is greater than the requirements.

Less Expensive

The electrical models of tankless water heaters are less expensive than gas models. The associated installation costs are also lower because there is no additional venting required. The costs of operation are also lower.

Environment-Friendly

The electric tankless water heaters are more environment-friendly as there are no emissions involved. The models are completely clean and there is significantly less carbon footprint involved.

Long Term Price Fluctuations

There is a significantly less possibility of having great fluctuations in the price of electricity. As opposed to this, the supply of natural gas or propane may be affected by frequent fluctuations in price.

Some of the limitations of using an electric tankless water heater for commercial applications are listed below.

Lower Efficiency

The electric models of tankless water heaters are not as efficient as gas tankless water heaters. They are not able to achieve the same temperature raise as a gas model would with the same incoming groundwater temperature.

Slow Heating Time

An electric tankless water heater is slower to heat the water to the desired temperature. Not only does it take a higher time to raise the temperature to the desired value.

Also, if the distance between the heater and the faucet is more then there is energy wastage as the temperature might lower as it travels along the pipes.

Susceptibility to Power Outrages

Power outages or power surges can be a frequent occurrence in any region and this will immediately affect the supply of hot water for any business that is relying on an electric water heater.

This problem can cause a significant issue when hot water is needed constantly.

How to use Commercial Tankless Water Heater

The following are a few pointers that one can keep in mind to optimally install and use their tankless water heaters for commercial applications. These are not only important for the safety of the customer when using the device, but also for ensuring that the unit has a long-lasting life.

  • All the states have their regulations and codes that have to be followed for the installation of a tankless water heater. This is especially so if there is a natural gas line or propane involved. Care must be taken to ensure that none of these codes are violated.
  • There is a whole section on the safety guidelines that have to be followed strictly for correct installation and to ensure that this is taken care of, the installation is usually left to the licensed professionals contracted by the company.
  • In the case of gas units, the gas pressure is pre-set in most models by the company itself and should not be tampered with.
  • Enough space should be ensured around the heater, whether indoors or outdoors, to make sure that the routine maintenance and repairs can take place smoothly.
  • There should be enough ventilation around a gas tankless unit to ensure that the device gets sufficient air for combustion.
  • A model which is designed for an indoor installation should strictly be installed indoors and the one for outdoor installation should be installed outdoors.
  • An attic is not a good place for installing an indoor tankless water heater because of the higher susceptibility of running out of proper air for combustion.
  • When the unit is installed in locations where there are chemicals bound to be present in the air, like beauty salons, factories or dry cleaners, it is recommended that direct venting be used.
  • Proper venting equipment should be used which is specifically designed for the particular model.

Keeping these points in mind will help in ensure proper safety for the user. Also, once the installation is complete, the water heater will work pretty much without much intervention from the user.

The automatic detection of water will trigger the heater to turn on or off and hot water will be supplied as required.

Maintenance of Commercial Tankless Water Heater

The maintenance of a commercial tankless water heater is very similar to the maintenance of a residential tankless water heater.

The most common problem faced by any tankless water heater is the hardness of the incoming water. This can lead to premature corrosion of the sensitive components of a water heater and affects its life.

There is usually an anode rod which is installed inside the water heater to attract the corrosive elements; however, the heat exchanger which is generally made of copper for better performance may get affected.

REMEDY:

  • The most common solution for this problem is to remove the limescale by flushing the system with white vinegar. The following steps should be followed for ensuring that the flushing is done properly.
  • The manufacturer’s cleaning instructions should be followed.
  • Turn off the water heater before starting the cleaning process.
  • The cover should be removed next.
  • The valves can be removed to relieve the pressure from the water heater.
  • The hose lines which are provided by the supplier should be attached to these valves.
  • The valves can then be opened and the rinsing solution is allowed to enter the system.
  • The vinegar solution can be prepared according to the extent of corrosion and cleaning needed.
  • Flush the unit with this solution till all the impurities are cleaned out.
  • Remove the hose pipes and replace the valves as before.
  • The lid can be placed back on the unit again.
  • These steps conclude the flushing process.

FAQs

What Applications are Best Suited for a Commercial Water Heater?

A commercial water heater can be used for a wide variety of operations. These can be as small as serving a few hot water outlets in a salon to as big as serving hot water to all the rooms in a hotel simultaneously. Some of the other commercial applications for a tankless water heater are in healthcare, education, retail, hospitality, etc.

What is the Warranty on Commercial Tankless Water Heaters? Is it Different from Residential Water Heaters?

The warranty for commercial tankless water heaters depends on the specific unit purchased. Typically, the warranty is 5 to 8 years on the heat exchanger, 5 years on the parts and a year on the labor. The warranty on the heat exchanger can even be measured in terms of hours of operation when it comes to commercial applications.

What is the Difference Between Thermal Efficiency and Energy Factor?

Thermal efficiency is the ratio of the energy delivered by the water heater in the form of hot water to the energy consumed by the tankless water heater. Energy factor is very similar to thermal efficiency but the denominator is different in the sense that the energy consumed is measured over 24 hours.

What is the Difference Between a Split System and a Packaged Unit?

A package unit does not have any separate components and comes as a single unit. A split system, on the other hand, can have separate indoor and outdoor components that can be assembled as per requirement.

Can Flowers be Planted around a Tankless Water Heater installed Outdoors?

Any flowers or shrubs can be planted around the tankless water heater system, however, they should not be any closer than 18 inches. This is so that the unit can get sufficient air for circulation. Lack of the required air can lead to overheating or malfunctioning.

Can a Commercial Tankless Water Heater be Installed for Home usage?

Yes, a commercial tankless water heater can be installed if the hot water requirement for the house is very large and can be sufficiently catered to by the heater without overshooting the requirements. However, care should be taken that the unit is installed in a location that it is specifically designed for.

Is it Necessary to Install a Water Softener for a Commercial Tankless unit?

This depends on the hardness of the incoming groundwater in the area where the tankless water heater is installed. Over the long term, if the heater is exposed to very hard water, it might be a good idea to install a softener because the increased hardness causes accelerated deterioration of the performance of the water heater.
There are instruments which can be used to test the hardness of the water. If it exceeds 12 grains per gallon, it might render the warranty void for many brands of water heaters. Regular maintenance and flushing should be done to avoid such cases.

Final Words

The hot water needs of businesses vary widely depending on the size of the business as well as the industry that they are operating in. Small offices and beauty salons’ hot water needs can be taken care of by even small capacity units.

The hot water requirement is limited to a few hours and not many faucets may be in use simultaneously.

By contrast, businesses like big hotels or hospitals are going to make use of hot water a lot more frequently and the needs are much larger. They need to simultaneously supply water on a large scale and round the clock.

In such a case, the unit which should be purchased will have a much higher capacity and different specifications from the models needed in the former case.

Therefore, one should carefully look at their own needs and then at various other factors that affect their hot water needs before choosing a model appropriate for their needs.

Here is the list of our top picks again for you. Check out the specs, customer reviews, price and offers on Amazon –

 

Last update on 2020-11-25 / Affiliate links / Images from Amazon Product Advertising API

ReviewsWorthy Team

Our team consists of enthusiastic and passionate people from different fields and experience. Some are geeks and spend most of their time among gadgets while others love nature and are always on the move! We spend 10s of hours researching and writing on each topic. The articles are then quality checked by our editors. View our "About us" section for more details about process and team.

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