Tank Vs. Tankless Commercial Water Heater: Comparing The Cost

Tank Vs. Tankless Commercial Water Heater: Comparing The Cost

Commercial water heaters are important for businesses like restaurants, hotels, and laundromats. To save money and keep them working well, it's essential to pick the right one. This article compares tank vs tankless commercial water heater, focusing on their costs and other factors that affect performance.

Energy Efficiency

When selecting a commercial water heater, factor in energy efficiency. Tankless water heaters go by several names like "on-demand" or "instantaneous" heaters. They use less energy compared to tank water heaters. Tankless heaters only heat water when needed. In contrast, tank heaters keep a large volume of water hot at all times, resulting in standby heat loss.

Commercial water heaters' energy efficiency relies on multiple factors, including insulation of the storage tank, heating element efficiency, and temperature settings. You can enhance a commercial water heater's energy efficiency in three ways. First, insulate the tank. Second, install a better heating element. Third, lower the thermostat setting.

Cost of Installation

Installing a commercial water heater can cost differently. It's based on the heater type, installation complexity, and location. Tankless water heaters cost more to install compared to tank water heaters because of their complicated design and the requirement for specialized venting and gas lines.

Installation costs for water heaters depend on various factors. These include the size and location of the heater, utility connections, and local labor rates. To lower the expense of putting in a commercial water heater, think about a few things. Pick a good spot near necessary services. Get the right size heater. And ask a few trustworthy installers for quotes.


Tankless water heaters need less maintenance than tank heaters. However, both types still require regular check-ups and servicing to work their best.

Maintaining a commercial water heater can be costly, depending on various factors. These include the type and frequency of maintenance services, the cost of replacement parts, and labor rates. Regular maintenance is cheaper than repairing or replacing a broken water heater. Commercial water heaters need regular maintenance, such as flushing the system, inspecting the heating element, and checking for leaks or corrosion.


Choosing the right size for your business water heater is important to ensure your hot water needs are met. Tank water heaters store a lot of hot water and are good for businesses that need a lot of hot water quickly. However, once the stored hot water is depleted, it takes time for the tank to replenish.

Tankless water heaters provide hot water on-demand, without a limit on the supply. They could have difficulty meeting high demand because their flow rate is limited. The cost of high-capacity commercial water heaters is generally higher than that of low-capacity heaters, but the increased capacity can help prevent downtime and improve customer satisfaction.

Fuel Type

Commercial water heaters can use different types of fuel, like natural gas, propane, or electricity. The type of fuel you choose can change the cost and efficiency of a commercial water heater. Gas heaters usually save more energy and cost less to operate than electric ones. They need a gas line and venting system, which makes installation more expensive.

To choose the best fuel type for a commercial water heater, think about fuel availability and cost, heater efficiency, and installation expenses.


Commercial water heaters have different lifespans. Tankless water heaters last longer than tank heaters. With proper maintenance, they can last up to 20 years or more. In contrast, tank heaters typically have a lifespan of 10 to 15 years.