Electric water heating has quickly become the predominant choice for commercial new builds for specification, meeting the demands of Part L and securing necessary BREEAM points. For organisations currently reliant on gas for their water heating needs, the impetus is to look at alternatives as part of wider sustainability strategies, with electricity being an obvious choice. It is not; however, a black-and-white decision as electric water heating can present a range of advantages and pitfalls, each of which can significantly impact operational efficiency, cost, and overall effectiveness. Understanding these factors is crucial for making informed decisions about water heating applications, especially in pre-existing buildings.
Advantages of Electric Water Heating
Electric water heating offers some clear advantages, most notably they can be highly energy efficient, particularly when compared to traditional gas heaters. They convert almost all their electricity into heat, minimising energy waste. This efficiency can be particularly advantageous in commercial buildings where energy costs constitute a significant portion of operating expenses. Combined with precise temperature control, which is essential in commercial applications where specific water temperatures are required, consistent performance is ensured. It can improve the efficiency of operations in settings like restaurants, hotels, and healthcare facilities.
Electric water boilers can be extremely compact, lending themselves to installation in smaller and more restrictive spaces. This space-saving feature is particularly beneficial in commercial buildings where space is at a premium. Electric water heaters are also generally easier to install than their gas counterparts because they do not require venting or gas lines. This simplicity can reduce installation costs and time, making them an attractive option for both new construction and retrofits. Additionally, electric units often have fewer moving parts, leading to lower maintenance needs and costs over time.
With no risk of gas leaks, and no production of harmful combustion byproducts, such as nitrogen oxide or carbon monoxide, Electric water heaters pose fewer safety risks compared to gas water heating. This makes electric water heaters a safer choice for commercial buildings where safety regulations and concerns are paramount.
From a sustainability standpoint electric water heaters will be seen to be more environmentally friendly, especially when powered by renewable energy sources. Whilst the electricity grid cannot yet claim to be a net zero energy source, it is in the process of becoming decarbonised, so an electric system would be a means to future-proof a building’s energy demands looking forward towards 2050. This alignment with green energy initiatives can help commercial buildings reduce their carbon footprint and meet sustainability goals.
And the Pitfalls of Electric Water Heating
While electric water heaters are generally easier and cheaper to install, high-quality, high-capacity electric units can have a higher initial cost than gas units. This initial investment can be a deterrent, especially for smaller businesses with limited capital, but the most significant disadvantage of electric water heaters is the potentially high operating costs. Electricity remains considerably more expensive than natural gas in the UK, at the time of writing, gas costs 5.48p per kWh (kilowatt hour), versus electricity, at 22.36p per kWh which can lead to substantial operating costs, especially in commercial buildings with high hot water demands. As we have observed, the overall efficiency and environmental impact of electric water heating depends on the source of the electricity. In the UK a notable proportion continues to be generated from fossil fuels (32% from gas versus 51% zero-carbon sources in 2023) so the environmental benefits are significantly reduced.
Of more concern is that electric water heating can place a significant additional load on a building’s electrical system. In commercial settings with substantial electrical usage, adding high-demand electric water heaters can strain the system. From our experience, we are already seeing projects adding extremely costly upgrades to electrical infrastructure as part of refit, something better hot water design could help avoid.
In terms of actual use, electric water heaters generally have slower recovery rates compared to gas water heaters. This means they take longer to heat water after the initial supply has been depleted. In commercial settings with continuous hot water needs, such as hotels or large office buildings, this slower recovery can be a drawback, necessitating either larger or additional units to meet demand, or if using an indirect electric boiler then a larger cylinder, in a similar way to heat pump driven systems.
Finally, water heating for commercial applications can have a significant impact on operations demanding robust and resilient 24/7/365 operation. If the electric water heating system is entirely dependent on the electrical grid should there be a power outage, these units will not function, leading to a lack of hot water. For businesses where a continuous hot water supply is critical, this dependency can pose a significant risk requiring additional emergency power supplies which will be extremely costly.
Considerations for the adoption of electric water heating in commercial properties
When considering electric water heating for commercial buildings, it is essential to weigh the specific advantages and pitfalls against the operational needs and constraints of the business. The key factors which should be considered are hot water demand, energy costs, infrastructure, environmental goals, Safety and Regulatory Compliance and backup.
If considering a transition to electric water heating start by assessing the volume and consistency of hot water demand. Talk to Adveco about metering hot water in your buildings as it is a low-cost activity that can pay dividends both in terms of capital investment and long-term operational costs. The data gained also helps when it comes to evaluating the local cost of electricity versus alternative fuels like natural gas. Businesses with high and constant hot water usage might find electric water heaters less suitable due to higher operational costs and slower recovery rates. However, for businesses with moderate or intermittent demand, electric units can be highly effective. If lower electricity costs or renewable energy sources are available, electric water heaters can still be cost-effective.
Modelling applications of real data is also critical when assessing and planning potential increases to the electrical infrastructure of a building. In our experience, significant upgrades specified to accommodate new electrical systems can be substantially pared back with better sizing and optimised design of electric water heating. If not, these costs, which are potentially very high in urbanised and city centre locations, must be factored into the decision.
For organisations with strong sustainability goals, or access to government funding for net zero projects electric water heating, powered by renewable energy sources, will align well with environmental initiatives, helping to reduce the overall carbon footprint and may in some circumstances offset cost concerns and help meet mandated investments in sustainable processes such as outlined in ESOS and SECR. Electric water heating may also offer advantages in terms of safety and compliance with local building codes and regulations, particularly in urban areas where gas installations might be restricted or pose additional risks.
In regions prone to power outages, it is essential to have a backup plan to ensure a continuous hot water supply. This might include battery backups or hybrid systems that combine electric and alternative heating sources such as solar thermal.
Conclusion
Electric water heating in commercial buildings offers a range of benefits, including energy efficiency, ease of installation and maintenance, safety, space efficiency, environmental impact, and precise control. However, these advantages must be balanced against potential pitfalls such as high operating costs, load on the electrical system, slower recovery rates, dependence on the electrical grid, initial costs, and environmental considerations related to the energy source. By carefully evaluating these factors in the context of their specific operational needs and local conditions, commercial building operators can make informed decisions that optimise both efficiency and cost-effectiveness in their water heating as a first step towards a wider sustainability strategy for their buildings.
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