If you are in the market for a new commercial water heater you will want to make sure that you make an educated decision. A new commercial water heater is a big investment that will last you a significant period of time. You want to make sure that you have done your homework on such a large purchase. There are two main types of water heaters that you could purchase. See below for the details on each to learn more about which option might be the best for your business.  Tank Storage: A tank storage water heater is the most common and traditional type of water heater for both residential and commercial use. The tank produces hot water and stores it in the tank until hot water is needed and used. However, this can be an inefficient way to store hot water and the water can cool down and need to be reheated. This reheating process can waste money. Insulation can be applied to help reduce the tank’s ability to cool down but is not always the most efficient. In regards to upfront cost a tank storage water heater is the most cost effective.  Tankless: A tankless water heater is the latest and greatest when it comes to heating water quickly. Tankless water heaters produce hot water on the spot so there is no need for it to be stored. The lack of storage reduces the amount of wasted money and energy. In the long run you will likely save money using a tankless water heater. However, the upfront cost of a tankless unit will likely cost you quite a bit more than a tank storage unit. Things to remember when purchasing a new commercial water heater is that you want to make sure you get the proper size for your business. It is important to get one that will produce slightly greater quantities than needed on a daily basis to account for the peak season. A high efficiency unit can help with additional savings for up to about 25% off of your monthly operating costs.