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Types of Commercial Tankless Water Heaters

The Different Types of Commercial Tankless Water Heaters Infographic

Water heaters are far more diverse than you might think. They come in a variety of different types and form factors, based on their mode of operation and other technological components. In this article, we will briefly cover the different types of commercial tankless water heaters. Here is a quick infographic to summarize:

Commercial Tankless Water Heaters

You might already know: “tankless” water heaters are those units that can heat water without a storage tank or boiler. They heat water “on demand.” “Commercial” tankless water heaters are those tankless water heaters which are specifically designed to handle extremely large hot water demands. Typically, non-commercial tankless water heaters are installed in single-family houses while commercial tankless water heaters are installed on large commercial properties like hotels, and restaurants. 

Learn more about the differences between commercial and non-commercial tankless water heaters here. 

Tankless Water Heaters Commercial​ Gas

The first division is based on fuel type: a commercial tankless water heater can be gas-powered or electric. Gas-powered water heaters are typically more energy efficient than standard electric resistance tankless water heaters and can function in power outages. However, gas-powered water heaters require venting, use non-renewable sources of energy, and are likely to be phased out in the future by the government.  

The comparison between a commercial tankless gas water heater and an electric heat pump water heater is more complex. A heat pump water heater can be more efficient than a gas-powered water heater in certain scenarios.

Tankless Water Heaters Commercial​ Gas Condensing

Parent Category: Gas Powered Water Heater

Gas-powered commercial tankless water heaters can be further divided into condensing and non-condensing tankless water heaters. Condensing tankless water heaters use condensing technology to absorb additional energy from exhaust gases before they are vented. This makes them more efficient than non-condensing tankless water heaters. Read our condensing tankless water heaters guide here. 

Condensing Tankless Water Heaters can be powered by natural gas or propane.

Commercial Tankless Hot Water Heater Natural Gas

Parent Category: Gas Tankless Water Heaters -> Condensing Gas Tankless Water Heaters OR Non-condensing tankless water heaters.

Natural Gas Tankless Water Heaters use natural gas as their primary fuel source to heat water. Natural gas costs lesser than propane in most places in the USA. You can learn more about propane vs natural gas tankless water heaters here.

Natural Gas Water Heaters can be condensing or non-condensing.

Commercial Tankless Water Heaters Propane

Parent Category: Gas Tankless Water Heaters -> Condensing Gas Tankless Water Heaters OR Non-condensing tankless water heaters

Propane tankless water heaters use propane as their primary fuel source to heat water. You require lesser amount of propane than natural gas to generate the same amount of heat energy. Find out more about propane vs natural gas tankless water heaters here.

Propane Gas Water Heaters can be condensing or non-condensing.

Commercial Electric Tankless Water Heater

The second major categorization of tankless water heaters according to their energy source comprises of commercial electric tankless water heaters. These types of tankless water heaters utilize electricity to generate the energy needed to heat water.

Commercial Tankless Water Heaters Electric Resistance

Parent Category: Commercial Electric Tankless Water Heaters

Electric resistance water heaters are the most common types of electric tankless water heaters. They use a heating element like a coil of resistance wires to heat water. This form of water heating tends to be extremely inefficient for large hot water demands.

Commercial Tankless Heat Pump Water Heaters

Parent Category: Commercial Electric Tankless Water Heaters

Heat pump water heaters absorb energy from ambient air to heat water – like a reverse “air conditioner”. They are widely considered to be the future of sustainable water heating their incredible efficiencies. However, current heat pump technology faces several adoption challenges which can be solved by developing tankless heat pump technology. Read our commercial tankless heat pump water heating guide here.

Intellihot launched the world’s first tankless heat pump water heater in early 2023. Learn more about the Electron Series here.

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