Best Commercial Tankless Water Heaters: For Laundromat, Restaurant, Hotel

Whether you operate a commercial kitchen at a restaurant, a laundromat, a hotel, a brewery, a car wash or any other type of commercial building that has high demand for hot water, you’d want to buy the highest GPM tankless water heaters that could keep up with the load. But here’s the question:

Can a commercial tankless water heater system provide enough hot water during the peak loads?

Will a tankless water heater system work for me?

I hate to say it again, but it depends. Tankless water heaters can handle even a very high demand. But there’s no one-size-fits-all solution. There are very powerful tankless water heaters, but you need to properly size the system according to your needs. And here’s good news:

In this article, you’re going to learn everything you need to know about commercial tankless water heaters. I’ll tell you about the pros and cons of on-demand solutions for your business and what size tankless water heater you would need. I will share my own product recommendations and some tips from business owners and professional plumbers.

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By fuel source: natural gas, electric, propane
By use: restaurant, laundromat, hotel, brewery

Commercial Tankless Water Heaters Reviews

Every type of business has its own hot water demand. Some need a tankless water heater just for the sinks, others need one (or more) for a dishwasher or washing machines. Tankless water heaters are also used for cleaning operations.

All of these cases require different solutions. I’ll cover most of them later in the article. If you don’t want to read the entire article, feel free to open the table of contents and skip to the section for your business.

Now, here is the list of the best commercial tankless water heaters on the market:

1. Rinnai CU199 (NG/LP) Indoor Commercial Tankless Water Heater For Laundromat, Restaurant, Hotels

If you saw our guide on buying the best tankless water heaters, you may have noticed how we love Rinnai. It’s because it is one of the most reliable tankless water heater brands out there. And reliability is very important when we talk about business solutions.

Normal residential Rinnai models are great. Even for high-demand households. But commercial application requires even higher temperatures, higher flow rates, redundancy, and more.

That’s why Rinnai offers commercial CU series. Rinnai CU commercial tankless water heaters are available for both indoor and outdoor installation.

Although both versions have freeze protection, it is recommended to install an indoor Rinnai CU199 if you live in colder climates where the temperature may drop below the freezing point.

You can use Rinnai CU either with natural gas or liquid propane.

If you compare it to other brands and models, Rinnai CU is probably the most technologically advanced solution and the easiest to operate at the same time.

Now, let’s take a look at it and see how it is different from other brands and what its specifications are:

Rinnai CU199: Closer Look at the Specs

First of all, Rinnai CU199 (and CU160) is a dedicated commercial tankless water heater model. It means that it’s specifically designed for higher hot water demands than any residential model and shows a longer lifespan considering the higher temperatures and heavy loads.

A single Rinnai CU199 unit can provide up to 11 GPM of hot water. And if it’s used in a tankless rack system (which can be both wall-mounted or free-standing), it can meet any hot water demand with 97% thermal efficiency.

The unit’s maximum capacity is 199,000 BTU. But that doesn’t necessarily mean it always burns at maximum capacity. It only shows that it’s capable of handling heavy loads, which is important if you’re considering the unit for commercial laundry or kitchen, for example.

Rinnai commercial tankless water heaters are equipped with wi-fi wireless modules that allow you to remotely control, manage, and maintain the unit via a simple app. It sends alerts when it requires maintenance or a part needs to be replaced. You can also set the temperature and monitor the use of gas and water.

Rinnai CU199 and CU160 units can be used as a single unit or in the rack system where you link multiple units together, allowing for redundancy and dependability. When one unit goes out, you have others working flawlessly.

More on the specific use cases you can learn below in the article (see “best for laundromats,” “best for restaurants,” etc. sections).

Overall, this is a great choice for any commercial application, and this is our #1 recommendation.

However, there are other commercial tankless water heaters that, although not as convenient and advanced as Rinnai, also show great performance and come at lower prices.

Check them out!

2. Takagi T-M50NG Heavy Duty – Highest GPM Commercial Tankless Water Heater For Hotel

Technical specs:

• Max. Flow Rate: 14.5 GPM (single unit)
• Activation Flow Rate: 0.4 GPM
• Dimensions: 25.25 x 25 x 12.75 (inches)
• Fuel type: Natural gas or Propane
• 6 year warranty

Takagi is a well-known Japanese tankless water heater brand that’s been on the market for over 60 years. It offers both residential and commercial tankless water heaters of the highest quality.

Takagi T-M50NG is fueled by natural gas but is also available in LP (propane) option.

With a max capacity of 380,000 BTU, it is the most powerful commercial-grade tankless water heater on our list. It is designed specifically for commercial applications like restaurants, hotels, breweries, etc.

Above 200,000 BTU, you’re going to need a plumbing license called a boiler operator license.

According to the specifications, it can produce an astonishing 14.5 GPM in warmer climates.

Takagi T-M50NG is the perfect fit for a hair salon, small cafe, or even a restaurant as it will never run out of hot water no matter how busy the shop gets.

It also can be used with water storage tanks as an additional (yet powerful) water heater.

It is possible to install up to four Takagi units together. And with the TM-MC01 multi-unit controller, you can install and control up to 10 units.

The heat exchanger is made of commercial grade copper which provides 25 times better heat transfer than stainless steel, making this model stand out among other tankless water heaters.

Built-in freeze protection prevents it from freezing in colder climates.

If you want to learn more about the specific use cases, feel free to skip to our dedicated sections about laundromats, restaurants, and more.

3. Rheem RTGH-C95DVLN Indoor Commercial Tankless Water Heater For Laundromat

Rheem RTGH-C95DVLN looks exactly like its residential twin. But they are very different:

While residential tankless water heaters max out at 120 degrees regardless of the inlet water temperature, this unit can heat the water up to 185 degrees and it never runs out!

This model is compatible with Schedule 40 PVC venting or PPs.

This model has one unique feature that differentiates it from others:

It’s an exclusive built-in condensate neutralizer. It raises the pH of the condensate so it can be safely discharged into the drain. It prevents pipes from corrosion and damage.

The maximum flow rate of this unit is 9.5 GPM, but if that’s not enough, you can connect up to 20 units into one system with no additional accessories needed.

Having multiple units installed creates redundancy. When a tankless unit goes down you can repair it while your business is up and running.

This unit may be installed both indoors and outdoor. The Rheem tankless water heater is on copper pipes. This kind of freeze protection allows Rheem RTGH-C95DVLN to be installed in places where the temperatures go down to as low as -30 degrees!

Rheem can be controlled via Wi-Fi (for indoor models). You will get gas and water usage reports straight to your app. The app also allows you to control the temperature and maintain the unit remotely. But notice this:

You may need to buy and install an additional wireless module.

Overall, Rheem RTGH-C95DVLN is a great alternative to Rinnai for lower prices. It has fewer features but comes at a lower price.

4. AO Smith ATI-540H-P Propane Commercial Tankless Water Heater

UPD (2022): This model is outdated and we do not recommend buying it anymore

If you didn’t know, AO Smith tankless water heaters are manufactured in the same place as Takagi. They partnered up in 2010 and have been trying to take their place on the market since then. This is why AO Smith ATI-540H-P looks so similar to Takagi tankless water heaters.

Now, let’s take a look at the model itself:

AO Smith ATI-540H-P is designed for light commercial and heavy residential usage.

Similar to Takagi, you can link up to 4 heaters or connect up to 20 heaters with a multi-unit controller.

Single unit’s maximum flow rate is at 10 GPM based on factory testing. The real flow rate totally depends on the temperature rise. The colder the inlet water temperature is, the lower the flow rate is going to be.

For example, the groundwater temperature in Florida is 67-77 degrees. If you’re going to heat the water up to 180 degrees, you’re going to get about 4 GPM of hot water, which is significantly lower.

In general, this is an OK model if you want to use it for beauty salons or spas or even a small commercial kitchen with multiple sinks. It may not be able to supply the hot water for a dishwasher though if you’re running a commercial kitchen.

5. Noritz NCC199CDV Commercial Tankless Water Heater

Noritz NCC199CDV features sleek modern cabinet design. These heaters can be wall mounted indoors or outdoors and save a huge amount of useful space that can be utilized for other revenue-generating ideas within the facility.

Noritz has one of the best thermal efficiency of 98%. In simple words, it means that for every dollar you spend on the natural gas burnt you’ll get 98 cents worth of hot water.

This model can cascade up to 24 units in the single multi-system using a special controller.

Noritz NCC199CDV features a unique heat exchanger design using 316L commercial grade stainless steel ensuring some of the best corrosion resistance from acidic condensate or poor water quality if you don’t have a water softener. Scale resistive materials allow Notitz NCC199CDV for longer lifespan.

In terms of venting Noritz offers both common and independent venting regardless of whether you use a single unit or up to six units in one vent system. The common vent system eliminates or reduces the number of penetrations for exhaust and intake that are required for your commercial tankless water heater system.

With appropriate system controller, you can link up to 24 units into one system.

The single unit’s flow rate reaches as high as 11.1 GPM. Two of these units are capable of easily handling a quick-service restaurant. Three would be a little bit bigger than that.

Overall, Noritz NCC199CDV is a great commercial tankless water heater that can cover needs of any commercial facility whether it’s a restaurant, a brewery, a hotel, or a laundromat.

6. Stiebel Eltron Tempra 24 Plus Electric Commercial Tankless Water Heater

Technical specs:

• Max. Flow Rate: 4.5 GPM
• Activation Flow Rate: 0.5 GPM
• Dimensions: 4.63 x 16.63 x 14.5 inches
• Service Requirements: 100 amps (2 double pole 50 amp breakers)
• 99.8 Energy efficient

Stiebel Eltron Tempra 24 Plus is actually a residential-grade unit. We’ve reviewed it in our article about the best electric tankless water heaters for the whole house.

But here’s the thing:

Commercial usage implies that there’s a huge demand for hot water. No electric tankless water heater is designed for heavy-duty usage. It would need too much power.

But at the same time, commercial facilities or places like hotel rooms or commercial kitchens in restaurants may need tankless water heaters for smaller applications like sinks, or showers, or cleaning operations. And electric options may be the most convenient.

For this kind of applications we recommend Stiebel Eltron Tempra 24 Plus.

It’s a German brand that makes some of the most reliable electric tankless water heaters. It ensures longer lifespan even in the commercial applications.

Although the technical specifications aren’t the best in the class, the reliability, great service support, and excellent reputation make Stiebel the perfect choice for commercial usage.

Its flow rate is 4.5 GPM which means it can easily handle the demand for hot water for a 3-compartment sink or a couple of showers. Which should be enough.

It requires 100 amp service and 2 double pole 50 amp breakers. So make sure your service can handle the load and the panel has enough space.

If you are looking for even lower demand point of use commercial tankless water heaters, we recommend this one:

7. Ecosmart ECO 11 Commercial Point of Use Tankless Water Heater

Technical Specs:

• Max. Flow Rate: 3 GPM
• Activation Flow Rate: 0.3 GPM
• Dimensions: 11.5″H x 8″W x3.8″D
• Service Requirements: 57 amps (1 DP x 60 amp breaker)
• 99.8 Energy efficient

Again, this unit is designed for residential usage. It’s not supposed to heat the water to 180+ degrees. But hey, do you even need 180 degrees hot water at your sink or shower?

Ecosmart ECO 11 can provide up to 3 GPM of hot water in warmer climates. Which equals to heating the water for a couple of sinks or a shower and a sink at the same time.

If your inlet water temperature is cold, you still can supply a sink or a shower with 1.5-2.5 GPM of hot water.

It’s cheap and easy to install and the requirements for installation are doable anywhere. You’re going to need to have place for only one 60 amp breaker in your service panel.

It’s 99.8% efficient and the hot water never runs out. This is why it’s so better than the mini-tank water heaters.

Overall it’s a great option if you are looking for a commercial point-of-use tankless water heater.

🧺 Best Commercial Tankless Water Heater For Laundromat

Now that we got to the actual product recommendations, let’s see what you should consider when choosing a tankless water heater.

But first, here’s the best commercial tankless water heater for laundromats according to our experts:

Technical specs:

• Max. Flow Rate: 11 GPM (single unit)
• Activation Flow Rate: 0.4 GPM
• Dimensions: 18.5 x 26.4 x 11.4 (inches)
• Fuel type: Natural gas or Propane
• Energy Star certified

If the budget allows, this is the best choice you can get for a mat. Rinnai CU Series can efficiently provide 11 GPM of hot water at 180 degrees straight to your washing machines, or it can be used as the heating unit in circulation loops for a large storage tank that serves the whole facility.

But there are some nuances that you should know about the sizing the system and tankless water heaters in general.

First, the sizing depends on how big is the mat. How many washing machines do you have? How big are they and how much hot water do they require?

Second, the inlet water temperature. The colder the temperature, the lower the flow rate will be. In warmer climates, a single Rinnai can provide a flow rate of up to 10 GPM. Which should be enough for 4 washers running at the same time. The number depends on the poundage and your location.

Third: we are talking timed cycles. If you have five Rinnais providing 5 GPM at 70 degrees rise and are washing with 120 degrees you are going to need the capacity of four units for one minute it takes to fill the 50 lb machine. That leaves 59 more minutes they can deliver hot water elsewhere. This is a theory of course and it’s a very rough estimation that lacks several unknowns, but you get the idea.

Now let’s see what the owners has to say about the tankless water heaters in laundromats:

And here’s what other mat owner says about the Rinnai:

If you’re still not sure whether you should buy a tankless water heater, consider these advantages they offer over the storage water heater or as an addition to them:

• Commercial tankless water heaters offer redundancy for laundromats. If you have several units installed and one of them goes down, you have others to support your business and serve your clients.
• They save you a lot of space that you could make use of.
• Commercial on demand tankless water heaters save you money over time due to the efficient use of natural gas and usage patterns. They’re only being used at max capacity when the hot water is needed on busy days. And they’re not being used as much when the place has few people in it and the demand is low.

And so you don’t feel it’s all rainbows and unicorns, here are the downsides of tankless water heaters for laundromats:

If you undersize the system the water fill rate for your washers may increase on the busy days. Here’s why:

Although the hot water never runs out, tankless water heaters can provide a limited amount of hot water per minute. It’s ok if the load is spread evenly during the day. But when the traffic at your place is heavy and all of your washers are being used at the same time, the fill rate may increase and the clients will have to wait longer.

Commercial tankless water heaters for laundromats for cold climates

Tankless water heaters may not be the best choice if you live in colder climates where the inlet water temperature is cold and the temperature rise is high. The colder water a tankless unit receives the more BTUs it has to burn to get it hot. With a 199,000 BTU limit on most water heaters the time a tankless unit spends to heat the water increases too. Thus the flow rate decreases and instead of the promised 8-11 GPM you’re going to get 4 GPM flow rate.

Condensing tankless water heaters like Rinnai CU199 (see below) partially solve this problem by increasing the efficiency to 98%, but it still may not be enough.

Rinnai CU199 Technical Specs

• Max. Flow Rate: 11 GPM (single unit)
• Activation Flow Rate: 0.4 GPM
• Dimensions: 18.5 x 26.4 x 11.4 (inches)
• Fuel type: Natural gas or Propane
• Energy Star certified

But nevertheless, a tankless unit can be a great addition to your existing system with a storage tank water heaters. You no longer need to keep 120 gallons of water 140-180 degrees hot in your storage. Instead, you may use it as a “buffer” to decrease the temperature rise for a tankless unit and increase its flow rate according to the requirements. Or vice versa.

This way you can burn less natural gas or propane and still be able to provide your business with enough hot water and save money on the bills over time.

🍽️ Best Commercial Tankless Water Heater For Restaurant

Now, commercial tankless water heaters for restaurants and commercial kitchens is a whole different story. The hot water demand and the usage patterns are very different than mats has. But our recommendations not so much.

If you’re in a hurry and just want to see the products, we’ve got two recommendations for commercial kitchens. We think that the best commercial tankless water heaters for a restaurant are Rinnai CU199 (both NG and LP options) and Ecosmart ECO.

Now, why are there two models and not one? Simple:

Rinnai is the main water heater that is used to provide continuous flow of hot water to the appliances with higher demand. While Ecosmart is recommended as the point of use unit for places like sinks at the bathroom or other places where the hot water is needed occasionally or where it’s more convenient to use a separate smaller tankless water heater.

If you’re looking for a tankless water heater for catering trucks and roadside food trucks, you may be more interested in our list of the best propane tankless water heaters.

Now, let’s see what advantages offer tankless water heaters for restaurants and what you should consider during the sizing process.

First and most obvious advantage is saving space. Tankless water heaters are much smaller and take much less space than traditional storage tank water heaters. While it may be not very important in other places, free space is a huge advantage in a commercial facility like restaurant where it can be used for additional utility area.

Second thing: redundancy. Restaurants and commercial kitchens simply can’t exist without hot water. I can’t imagine what a restaurant owner feels when his storage tank leaks. It’s a disaster!

Fortunately, if you install a tankless water heater, there’s no storage to leak. If maintained tankless units can easily serve about 10 years in heavy duty mode without any problems. And if you installed several units (which is common for a busy place) and one of them goes down, you have other units running and provide you with endless hot water.

When you buy a tankless water heater for your kitchen, you buy a peace of mind that you won’t have to shut down your operation due to lack of hot water. Because it’s always there!

Third, you save money over time. At the end of the day, costs is likely one the most important factors that you consider when investing in a water heater, right? It’s true that the upfront cost of a tankless system is higher than the tank-types. But don’t be fooled by it!

When you buy a tankless system you’re buying the powerful modern technology that ensures high efficiency. I don’t want to sound overly salesy, but it’s true. Your savings over time will cover the initial expenses. Your natural gas bills will drop significantly because tankless water heaters are heating the water on demand. Unlike storage tanks that are running 24/7.

Learn more

🏨 Best Commercial Tankless Water Heater for Hotels

A tankless water heater system also works great for a hotel or senior care facility. Here’s why:

In hotels the hot water demand is spread evenly across the day. In the mornings people take showers. In the afternoon they do laundry, etc.

A regular tank-type water heater would be wasting energy by heating the water during the whole day. While a tankless on demand water heater uses energy when the hot water is needed and stays in the standby mode when the demand is low and doesn’t waste energy.

Here’s what we think is the best commercial tankless water heater for hotels:

Rinnai CU 199 Technical Specs:

• Max. Flow Rate: 11 GPM (single unit)
• Activation Flow Rate: 0.4 GPM
• Dimensions: 18.5 x 26.4 x 11.4 (inches)
• Fuel type: Natural gas or Propane
• Energy Star certified

If you’re looking for a point of use solutions, consider this electric tankless water heater: