We Use CookiesWe use cookies to enhance the security, performance, functionality and for analytical and promotional activities. By continuing to browse this site you are agreeing to our privacy policy

10 Best Commercial Tankless Electric Hot Water Heaters 2026 in the United States

How do we rank products for you?

Our technology thoroughly searches through the online shopping world, reviewing hundreds of sites. We then process and analyze this information, updating in real-time to bring you the latest top-rated products. This way, you always get the best and most current options available.

headphones-stars

Our Top Picks

#1

Winner

Rheem RTEX-24 24kW 240V Electric Tankless Water Heater, Gray

Rating
10.0
Chosen by1,120
Energy Efficiency
Installation Requirements

Most important from
3860 reviews

Energy Efficiency
Exceptional efficiency and workmanship.
Installation Requirements
Installation is straightforward and the unit heats water quickly.

The Rheem RTEX-24 is a 24kW, 240V electric tankless water heater designed for commercial use. Its standout feature is the ability to deliver a high flow rate of up to 5.9 gallons per minute (GPM), which means it can supply hot water to multiple fixtures simultaneously, a beneficial trait for commercial settings.

Its self-modulating power control ensures efficient energy usage, achieving an impressive 99.8% energy efficiency, making it a cost-effective choice for businesses looking to reduce energy bills. The adjustable digital temperature display and ON/OFF dial control make it user-friendly, allowing precise temperature adjustments.

Installation is simplified with bottom 3/4

Rating
10.0
Chosen by1,120
Energy Efficiency
Installation Requirements

Most important from
3860 reviews

Energy Efficiency
Exceptional efficiency and workmanship.
Installation Requirements
Installation is straightforward and the unit heats water quickly.
#2

Rheem 18kW 240V Tankless Electric Water Heater, Gray

Rating
8.8
Power Rating
Temperature Rise
Installation Requirements

Most important from
3860 reviews

Power Rating
Cheaper than Home Depot, pulls about 8kW upon use.
Temperature Rise
No need to set the temperature to 145°F unless using multiple hot water devices simultaneously.
Installation Requirements
Installed in a tiny house and works wonderfully.

The Rheem 18kW 240V Tankless Electric Water Heater is a strong contender in the commercial tankless electric water heater category. With a flow rate of up to 4.4 gallons per minute (GPM), it can efficiently supply hot water for various applications, making it ideal for small businesses or residential settings where space-saving is crucial. The unit features advanced self-modulation technology that adjusts power usage based on hot water demand, improving energy efficiency, which is rated at an impressive 99.8%. This could lead to significant savings on energy bills, particularly in environments with fluctuating hot water needs.

Installation is straightforward, with bottom 3/4 inch NPT water connections and a wall-mount design that is simple to set up. The external digital thermostatic control with LED display allows for precise temperature adjustments, catering to specific user preferences with accuracy to +/-1 degree. The durable copper immersion heating elements further enhance the product's longevity, and being field serviceable means maintenance can be done without needing to replace the entire unit.

There are some considerations to keep in mind. While the flow rate is suitable for residential or light commercial use, larger businesses with higher hot water demands might find this unit insufficient. The weight of 14.78 pounds is relatively light for its size, but some users might still prefer a more robust model depending on their specific needs.

Rating
8.8
Power Rating
Temperature Rise
Installation Requirements

Most important from
3860 reviews

Power Rating
Cheaper than Home Depot, pulls about 8kW upon use.
Temperature Rise
No need to set the temperature to 145°F unless using multiple hot water devices simultaneously.
Installation Requirements
Installed in a tiny house and works wonderfully.
#3

Rheem 11kW 240V Tankless Electric Water Heater

Rating
8.8
Energy Efficiency
Durability and Warranty

Most important from
3860 reviews

Energy Efficiency
Heats the water within seconds and is far more energy efficient than old units constantly heating large volumes.
Durability and Warranty
The unit quit working after one year, and customer service was unhelpful in resolving the issue.

The Rheem 11kW 240V Tankless Electric Water Heater is a solid choice for those needing a reliable source of hot water on demand. Its main strength lies in its ability to provide continuous hot water with a flow rate of up to 2.68 gallons per minute (GPM). This makes it suitable for smaller commercial settings or households with moderate hot water needs. The adjustable digital temperature display and self-modulating power control are user-friendly features that help maintain consistent water temperature and energy efficiency.

The unit is relatively compact, with dimensions of 8.25 inches wide by 12.63 inches high, and it is wall-mountable, which can save valuable space. Durability seems promising with a solid construction and a stainless steel finish. Some potential drawbacks include the power rating of 11 kW, which may not be sufficient for larger commercial applications or areas with higher hot water demands. Additionally, installation requirements might require professional help, particularly for those unfamiliar with electrical setups.

This Rheem tankless water heater is an efficient and compact option for consistent hot water supply in smaller commercial or residential settings, but it may not be ideal for larger, high-demand environments.

Rating
8.8
Energy Efficiency
Durability and Warranty

Most important from
3860 reviews

Energy Efficiency
Heats the water within seconds and is far more energy efficient than old units constantly heating large volumes.
Durability and Warranty
The unit quit working after one year, and customer service was unhelpful in resolving the issue.

Buying Guide for the Best Commercial Tankless Electric Hot Water Heaters

Choosing the right commercial tankless electric hot water heater can be a bit overwhelming, but with the right approach, you can find the perfect fit for your needs. The key is to understand the specific features and specifications that matter most for your application. By focusing on these key specs, you can ensure that you select a model that provides reliable, efficient, and sufficient hot water for your commercial space.
Flow RateFlow rate, measured in gallons per minute (GPM), indicates how much hot water the heater can deliver at a time. This is crucial because it determines whether the heater can meet the demand of your commercial space. For small businesses with low hot water needs, a lower flow rate (around 3-5 GPM) may suffice. For larger operations like restaurants or hotels, a higher flow rate (10+ GPM) is necessary to ensure multiple fixtures can operate simultaneously without a drop in water temperature. Assess your peak hot water usage to determine the appropriate flow rate for your needs.
Power RatingThe power rating, measured in kilowatts (kW), indicates the heating capacity of the unit. Higher power ratings mean the heater can heat water more quickly and handle higher flow rates. For light commercial use, a unit with a power rating of 10-20 kW might be adequate. For heavy-duty applications, you might need a unit with 20-30 kW or more. Consider the volume of hot water required and the speed at which it needs to be heated to choose the right power rating.
Temperature RiseTemperature rise refers to the increase in water temperature as it passes through the heater. This is important because it affects how hot the water will be when it reaches the tap. A higher temperature rise is needed in colder climates where incoming water temperature is lower. For example, if the incoming water is 50°F and you need it to be 120°F, the heater must provide a 70°F temperature rise. Ensure the unit you choose can achieve the necessary temperature rise for your location and usage.
Energy EfficiencyEnergy efficiency, often expressed as a percentage, indicates how well the heater converts electrical energy into hot water. Higher efficiency means lower operating costs and less energy waste. Look for units with efficiency ratings of 90% or higher for the best performance. Consider the long-term savings on energy bills when choosing a more efficient model, especially if your commercial space has high hot water usage.
Installation RequirementsInstallation requirements include the electrical specifications and space needed for the unit. Commercial tankless electric water heaters often require significant electrical capacity, so ensure your building's electrical system can support the unit. Additionally, consider the physical space where the heater will be installed. Some units are compact and can fit in tight spaces, while others may require more room. Check the installation guidelines and consult with a professional if necessary to ensure compatibility with your building.
Durability and WarrantyDurability and warranty are indicators of the unit's reliability and the manufacturer's confidence in their product. Look for heaters made with high-quality materials that can withstand the demands of commercial use. A longer warranty period (5-10 years) provides peace of mind and protection against potential issues. Consider the reputation of the manufacturer and read reviews to gauge the durability and reliability of the unit.

FAQ

Most Popular Categories Right Now