As a business owner, you have a lot to consider. Not only do you have to plan for the big picture, but you also need to account for the smaller details. Without the right size water heater, your guests, employees, or tenants will be left with cold water, and that doesn’t reflect well on your business.

If your old tank-style water heater is on its last legs, you’re likely considering an upgrade to a modern electric tankless water heater. Electric tankless water heaters boast many benefits, including:

  • On-demand heating
  • Free up more space
  • More energy-efficient

We’ve pulled together a list of 5 reliable commercial electric tankless water heaters to get the ball rolling. Just be sure to always consult with a professional plumber on the correct size for your business!

Top 5 Models of Commercial Electric Tankless Water Heaters

There are dozens of different water heater brands on the market, but some are more established than others. The following 5 brands and models frequently appear and various commercial applications, such as:

  • Hotels
  • Restaurants
  • Offices

We’ll take a closer look at the specs of each model, plus their pros and cons. And, of course, you are still encouraged to consult with a local professional plumber, as they may have a specific recommendation for your business that’s either on or off this list.

  • Important Note: Many heavy-duty commercial tankless water heaters still need to be powered by gas. Most electric water heaters are better suited for smaller commercial situations.

1) Stiebel Eltron Tempra

Stiebel Eltronis a German-made water heating company that has been well-trusted for over 90 years. The Tempra line has specialized technology that never allows you to run out of hot water.

You’ll enjoy endless hot water because if the Tempra is experiencing high demand, it will automatically deliver slightly less water so that it can remain hot. Many other brands will continue to deliver the same amount of water, but doing so makes it run cold.

The self-modulation feature also ensures that the least amount of energy is used at all times, saving you money on your electric bills. This model is ideal for smaller commercial settings, such as:

  • Small laundromats
  • Spas
  • Salons
  • Barbershops

The main con? The upfront price of this model is expensive. However, that goes for most electric water heaters. Thankfully, the energy-efficient nature helps you recoup your investment along the way.

2) EcoSmart ECO 11

The EcoSmart ECO 11 model is popular for commercial settings that have multiple handwashing units. So if you have a communal restroom or sinks in your office breakroom, this is a reliable model.

EcoSmart tankless electric hot water heaters are 90% smaller than traditional tank-style water heaters, so you’ll free up a lot of space with this brand.


  • It’s a smaller unit, so it’s not ideal for large industrial commercial settings. Work with a plumbing professional to find the right size unit for your business.
  • It’s most consistent in warmer climates.

3) Rheem RTEH100

Like many other manufacturers, Rheem makes models that are run on natural gas or propane. However, they do have smaller, point-of-use electric tankless water heaters for those looking to make the switch to an electric water heater.

The Rheem RTEH line has SafeStart technology that engages every time the water starts up to help avoid occurrences of dry fire. It can mount in any orientation so that you can make the most out of your space.

No soldering or sweat connections are required, and the compact size is suitable for ADA-compliant facilities.

The biggest con is that these are smaller units that can’t support high water demands in a large hotel or office park.

4) Eemax ProSeries XTP

Okay, we’ve mentioned a few tankless electric water heaters that are best for small commercial applications. But what about larger commercial and industrial needs? Then the Eemax ProSeries XTP is for you.

The ProSeries is ideal for diverse commercial situations that require water temperatures up to 180 °F and flow rates between 0.5 and 20 gallons per minute. There are 10 different models in the ProSeries, and they all either have 3 or 6 heating chambers. The XTP, in particular, can handle applications like:

  • Washdown processes
  • Dishwashers
  • Handwashing
  • Shower facilities
  • Commercial kitchens and utility sinks
  • Mop sinks

The biggest con to be aware of is the upfront installation cost.

5) AO Smith Electric Tankless 4-Chamber

AO Smith makes a 4-chamber electric tankless water heater that is very user-friendly. You can adjust the temperature with simple “up and down” arrows on the digital interface. Replacement parts are easy to find and install, so overall, this model is very easy to work with.

This is another model that can only handle smaller commercial applications. If you need a heavy-duty solution, AO Smith also makes more robust tankless water heaters; however, they are gas-powered.

We’ll Help You Find the Perfect Tankless Water Heater

Making the switch from a tank-style water heater to a modern tankless water heater is an exciting decision! However, choosing the right size model and making the upfront financial commitment can feel overwhelming.

Thankfully, you have a friendly partner in Paladin Plumbing. We’ve been helping Minnesota home and business owners with water heater installations for over 20 years. We’ll get down to the nitty-gritty details in order to find the correct size water heater for your needs.

Reach out to Paladin today for a free estimate!