Maximizing Efficiency: A Deep Dive into Propane Tankless Water Heaters

Propane tankless water heaters are renowned for their exceptional efficiency, with some models boasting efficiency ratings of up to 98 percent. This remarkable performance is largely attributed to their condensing design, which allows them to extract additional thermal energy from the combustion gasses, effectively heating the incoming water more effectively. Furthermore, Energy Star-rated propane tankless units have the potential to consume up to 25 percent less energy than traditional commercial water heaters, making them a highly attractive option for businesses and facilities seeking to optimize their energy usage.

Factors Influencing Efficiency

The efficiency of a propane tankless water heater can be influenced by a variety of factors, including the size and efficiency of the unit, how well it is matched to the space, the quality of the installation, and the frequency of maintenance.

Unit Size and Efficiency

The size and efficiency of the propane tankless water heater play a crucial role in determining its overall performance. A typical propane tankless water heater producing 40,000 BTU/hour, for instance, will consume approximately 1.5 gallons of propane per day. However, the actual usage can vary based on factors such as the specific model’s efficiency rating, the size of the unit, and how well it is matched to the building’s hot water demand.

To qualify for the Energy Star commercial water heater label, propane tankless systems must have a capacity greater than 200,000 BTUs per hour, a thermal efficiency of 0.94 or higher, and an Energy Factor of 0.93 or higher. These stringent requirements ensure that the most efficient models are recognized and promoted, helping commercial building owners and facility managers make informed decisions.

Installation and Maintenance

The quality of the installation and the frequency of maintenance can also have a significant impact on the efficiency of a propane tankless water heater. Proper venting, reliable propane supply connections, and adherence to the manufacturer’s instructions are crucial for ensuring optimal performance. Regular inspections and cleaning to remove any buildup or blockages in the unit can also help maintain its efficiency over time.

Demand Charges and Energy Costs

It’s important to note that the efficiency of a propane tankless water heater can also be influenced by the demand charge associated with electric utility tariffs. In addition to the electric rate a facility pays per kilowatt-hour, most commercial utility tariffs include a demand charge based on the peak demand drawn by the facility. This charge reflects the load that the facility places on the generation and transmission systems and can be as high as several hundred dollars per month.

By limiting the demand from large electric equipment, such as high kW-rated electric water heaters, commercial building owners and facility managers can effectively reduce their demand charges and lower their overall energy costs. Propane tankless water heaters, with their high efficiency and lower energy consumption, can play a crucial role in this strategy, helping to optimize energy usage and minimize the financial impact of demand charges.

Long-Term Cost Savings

how efficient is a propane tankless water heater

While propane tankless water heaters may have a higher upfront cost compared to traditional storage tank models, they can offer significant long-term energy savings due to their superior efficiency. The average cost of a propane tankless water heater is around $1,000 per unit, but these systems are designed to operate for 20 years or more, which is two or three times longer than most storage tank water heaters and electric tankless water heaters.

Assuming an average energy savings of $150 per year, the investment in a propane tankless water heater can be recouped in approximately six to seven years. This long-term value proposition makes propane tankless water heaters an attractive option for commercial building owners and facility managers who are looking to optimize their energy usage and reduce their operating costs over the life of the equipment.

Reducing Carbon Footprint

One unique aspect of propane tankless water heaters is their ability to decrease a building’s carbon footprint. Nearly all water heating systems will have some environmental impact linked to their operations in the form of carbon emissions. However, propane tankless systems enable commercial buildings and facilities to lessen their impact on the environment, which is particularly beneficial for those with environmental standards to maintain or green certifications to achieve.

Propane, as a clean-burning fuel, produces lower carbon emissions compared to other fossil fuels, such as oil or coal. When combined with the high efficiency of propane tankless water heaters, this translates to a significantly reduced carbon footprint for the building or facility. This makes propane tankless water heaters an attractive choice for environmentally conscious commercial entities that are committed to sustainability and reducing their environmental impact.

Conclusion

Propane tankless water heaters offer exceptional efficiency, with some models achieving ratings of up to 98 percent. This efficiency is largely due to their condensing design, which allows them to extract additional thermal energy from the combustion gasses and use it to heat incoming water more effectively. Energy Star-rated propane tankless units can even use up to 25 percent less energy than conventional commercial water heaters.

The efficiency of a propane tankless water heater can be influenced by various factors, including the size and efficiency of the unit, the quality of the installation, and the frequency of maintenance. Additionally, the demand charges associated with electric utility tariffs can also impact the overall energy costs, making propane tankless water heaters a strategic choice for commercial building owners and facility managers seeking to optimize their energy usage and minimize their operating expenses.

With their long-term cost savings and the ability to reduce a building’s carbon footprint, propane tankless water heaters are a highly compelling option for commercial applications. By carefully considering the technical specifications, installation requirements, and maintenance needs, commercial building owners and facility managers can maximize the efficiency and performance of these innovative water heating systems.

References:
Three Benefits of High-Efficiency Propane Tankless Water Heaters
Tankless Water Heater Propane Use
Maximize Efficiency with Propane Tankless Water Heater