Commercial Water Heaters

THE PRODUCT:

Commercial water heating equipment includes a wide range of equipment that heats potable water for purposes other than space heating. Businesses with commercial water heaters range from office buildings, which typically use very little hot water, to restaurants, which may use large volumes. 

THE STANDARD:

The current standards for most types of commercial water heaters took effect in 2003. The standards require a minimum thermal efficiency level of 80%. DOE finalized amended standards in 2023, which require compliance starting October 6, 2026. Once the updated standards take effect, new commercial gas-fired water heaters will be required to meet a minimum thermal efficiency of 95% or 96%, depending on the equipment type, effectively requiring the use of condensing technology.

KEY FACTS:

Although there are electric and oil-fired commercial water heaters, gas-fired equipment accounts for most of the energy consumption of this product category.