Commercial Tankless Water Heaters vs. Storage Tanks: How Are They Different?

Most commercial plumbers have ample experience installing tankless water heaters as well as the more traditional water storage tanks. However, you have to explain the differences to your clients, which can be difficult to do. You want them to consider the benefits of each system, including efficiency, longevity, and cost. We are going to compare a traditional hot water storage tank and tankless water heater, and we will also go into some of the pros and cons. Because you are working closely with business owners and commercial operators, you want to ensure that you are explaining their options in greater detail.

Tankless water heaters provide water on demand via high-powered burners that heat the water supply instantaneously. The water runs through the exchanger and the system delivers the hot water directly to a faucet or shower. Tankless water heaters typically rely on electricity or gas as an energy source. They are also found to be more energy-efficient than hot water storage tanks by about 22%.

Many commercial vendors (and residences) make use of the traditional hot water storage tanks. The units are typically a 50 gallon water heater system that stores the water and keep it hot until it’s needed. A pipe connected to the tank delivers hot water to various fixtures around the commercial space of your clients, including bathrooms and kitchen areas.

Storage tanks also make use of gas and electricity as a source of power. A natural gas water heater uses about 50% less power than less energy than an electric storage tank, making them much more cost-effective as well. However, your commercial clients can expect to spend more money to install a gas water heater. They also feature a temperature and pressure-release valve that activates when there are irregularities in the preset functions.

Business owners with on-demand tankless water heaters use much less water on an average day. You should recommend to your commercial clients that if they use a lot of water in a day, then that efficiency will make a huge difference. Tankless systems are also going to cost you more than a traditional storage tank, but they are also designed to last a lot longer. The average lifespan of a tankless electric water heater is roughly 20 years, whereas storage tanks tend to last for 10 years before they’ll need to be replaced. Tell your clients that their energy savings will improve by 27 to 50 percent if they install on-demand water heaters at all hot water outlets.

• They will save your clients money over time.
• Tankless water heaters are going to help businesses cut down on energy costs and limit waste.
• They offer greater longevity than traditional storage tanks.
• A tankless water heater can last up to 30 years with preventative maintenance and regular repair work. You should also inform your clients that hard water can affect the lifespan and efficiency of their system. 
• The unit itself takes up a lot less space than a traditional hot water tank.
• You can install on-demand water heaters in tight quarters and areas with limited space because they are so compact. This makes things a lot easier for commercial properties that have limited space.
• You won’t have to wait for the tankless unit to deliver hot water. Most systems can provide up to three gallons of water per minute. Storage tanks will take longer to heat your water supply because of the sheer volume of water that the tank has to store at one time.

• Purchasing and installing a commercial tankless system will likely cost the client more money. The installation can be especially costly if you are replacing a traditional storage tank with a tankless system. 
• Retrofitting a tankless water heater (in place of a traditional storage tank) will take some time to complete. You should tell your client about the complications that can arise when relocating the existing pipes. This can easily increase the installation costs. 
• Some tankless systems are “output challenged”.
• Taking two showers at the same time or using multiple plumbing fixtures simultaneously will overtax your tankless system. They often cannot keep up with the demand that comes with high usage. This can affect employee and customer morale.

• Storage tanks have a much more affordable initial cost when it comes to purchasing and installing the system. This is extremely beneficial for businesses that are looking to minimize their operating expenses responsibly.
• Storage tanks operate more simply than a tankless system, which can result in affordable repairs and maintenance. 
• The simplicity of the system makes it much easier to ensure that they are functioning properly. Tankless water heaters require more specialized training and skill to repair.

• The monthly utility bills are going to be higher.
• Storage tanks have to reheat water constantly, which can create a wasteful situation in terms of the client’s energy usage. Find out how often they are using their hot water. If you can save them some money on monthly energy expenses, then you should recommend a commercial tankless water heater.
• Storage tanks take up a lot more space than an on-demand water heater.
• If your client’s business has severe space restrictions, then you can end up creating a tough logistical issue. 
• Depending on the needs of the client, they may need a larger storage tank. Larger units are much more difficult to install, and with greater hot water availability will come higher energy costs. 
• The client will need to replace a storage tank a lot sooner than a tankless unit. They only have about half the average lifespan, which means that you will go through two storage tanks before having to replace a tankless system.

All of this information is crucial to communicate to your clients. As a repair tech and commercial water heater specialist, your mission is to ensure that you are properly taking care of your clients. Try to explain every option that they can choose from and help them narrow down the choice that is best for them. You should also go over different types of systems that are available to your clients. This includes everything from electric water heaters to 50 gallon water heaters to solar hot water heaters to tankless gas water heaters. Again, talk them through their options and make sure they are making the right choice!