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Commercial Hot Water Systems

The following topics are discussed on this page:


As a business owner, you probably know all your pieces of operating equipment inside and out.

The hot water system, though, is less understood, yet it is just as important as the other equipment.  This is mainly due to the reliability of the hot water system and the fact that it needs little or no intervention to perform, so much so that we only really look at it when something goes wrong.

This is the main reason to spend the time at the start determining which hot water system to choose, because for the next decade or so you will have very limited involvement in your hot water system. If you choose the wrong type, you could be silently costing yourself and your business hundreds of dollars per month in extra running costs.

Hot Water System Fuel Types

Hot water systems are generally run with LPG, Natural Gas, or Electricity.

In office buildings, or where gas is not a viable option, electric instantaneous hot water systems seem to be the most popular.

Your electrician needs to be informed of the energy draw before the work is started.

I am yet to see solar-powered hot water systems in the commercial world. The use of battery power may change this. Large heat pumps are sometimes used in conjunction with instantaneous hot water systems.

Types of Hot Water Systems

It can be quite confusing when deciding on the type of hot water system you are going to choose for your business.

Hot water systems related to commercial business fall into four major groups. Below is a look at the pros and cons of each:

  • Gas Hot Water System
  • Electric Hot Water System
  • Continuous Flow Hot Water System (outdoor and indoor), (Gas or Electric),
  • Renewable Energy – Heat Pump, Solar Hot Water

Pros and Cons of each group

Gas Hot Water Systems

  • Pros
    • Can be serviced by either LPG or Natural gas, giving it a good serviceable area
    • Cheaper than electricity
    • Gas leaves a better carbon footprint than electricity
    • Very easy to work out gas usage when planning for LPG use
    • Suitable for indoor and outdoor use
    • Suitable for instantaneous and storage hot water
  • Cons
    • Limited areas of use indoors and outdoors due to gas safety
    • Gas components need maintenance more regularly than electric
    • LPG requires constant work with the supplier to maintain gas supply
    • Usually a higher set-up cost than electricity.

Electricity Hot Water System

  • Pros
    • Cheap to install
    • Cheaper to buy
    • Different tariffs can be used to gain access to cheaper power
    • Can be used indoors and outdoors with less restriction than gas
    • Suitable for instantaneous and storage hot water
  • Cons
    • Leaves a big carbon footprint
    • Has components which regularly fail (Elements and Thermostat)
    • Old wiring needs to be regularly updated when installing a new system
    • Less energy efficient than gas

Instantaneous Hot Water System

  • Pro
    • Cheap set-up costs
    • Very energy efficient (No storage tank to keep hot, only heats water on demand)
    • Space saving (Very small inside, can be installed anywhere, even in a cupboard)
    • If there is gas or electricity, the hot water will not run out
    • Suitable for LPG, Natural or electricity
    • Can be installed indoors and outdoors
  • Cons
    • These units are sized to produce a certain water flow limit. Sizing these units is critical to a successful installation
    • These units require high power, gas output when in use.

Hot Water System Brands

We are blessed with so many great brands to choose from in Australia. I have listed the main brands we deal with. It pays to keep up to date with the different products that these businesses are bringing out as the rate of technology advancements over the past 2-3 years are really starting to add some great features to the market.

  • Rheem Electric hot water systems
  • Rinnai Electric hot water systems
  • Stiebel Eltron Electric hot water systems
  • Vulcan Electric hot water systems
  • Aquamax Electric hot water systems
  • Dux Electric hot water systems
  • Everhot Electric hot water systems
  • Boosch hot water systems

Company Commercial Brochures

I have provided links below to the comprehensive pages that each of these brands provides for your view about their commercial hot water solutions.

Dux Water Heaters 


Rheem Commercial & Industrial

AquaMAX Water Heaters

Vulcan Electric 80-400L

Hot Water System Maintenance

A hot water system can be very costly when it comes to replacing the whole system at the end of its life. For this reason, it is important to perform one or two maintenance tasks along the way so that you can prolong the life of your hot water systems for as long as you want.

So, what can you do as the owner?

  • Inspect the hot water system’s exterior on a regular basis. You may notice water stains or water around the base of the tank. This may be a leaky seal at the start, but if left could turn into bad corrosion and seriously reduce the lifespan of your tank.
  • Inspect the hot water system relief valves periodically. These are the valves with a little lever on top. If the valves are constantly letting water through, then call a plumber to come and replace the valves. Any delay could void your insurance and could be dangerous, as these valves control the pressure inside your hot water system.
  • The sacrificial anode protects your tank from corrosion and needs replacing every 5 years. This component really extends the lifespan of a tank, so I highly recommend replacing them every 5 years.
  • Keep the area around your hot water system clear of vegetation. 

Over the coming months, we will keep expanding on the topic of hot water systems by providing helpful hints and videos on how to use your hot water system more effectively.

If you have any questions or topics that you would like us to research in the meantime, write to us with your request and we will be only too happy to help you where we can.

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