Water heating is typically the second-largest utility expense for a laundromat after water itself, and in many stores it represents 20–35% of total utility costs. Choosing the right water heating system — and keeping it properly maintained — can make or break your margins.
I'm Nick Kremers, founder of WashBizHub. This guide covers everything laundromat owners need to know about water heating systems in 2026.
| System Type | Fuel | Best For | Efficiency | Upfront Cost | Operating Cost |
|---|---|---|---|---|---|
| Tank water heater | Gas | Most laundromats | 0.58–0.70 UEF | $1,000–$5,000 | Low (gas) |
| Tankless (on-demand) | Gas or electric | High-throughput stores | 0.87–0.98 UEF | $3,000–$10,000 | Lower than tank |
| Electric resistance tank | Electric | Gas unavailable | 0.90–0.95 UEF | $800–$3,000 | High (electric) |
| Heat pump water heater | Electric | Mild climates; green goals | 3.0–4.5 UEF | $3,000–$8,000 | Low-medium |
| Solar water heating | Solar + gas/electric backup | Sun-belt markets | 3.0–8.0 SHF | $8,000–$25,000 | Very low |
Gas Water Heaters: The Standard for Most Laundromats
Natural gas water heaters are the dominant choice for laundromats in markets where gas is available. In most of the US, natural gas provides heat at $0.50–$0.90 per therm-equivalent, compared to $1.50–$2.50+ for the equivalent electric heat — making gas 2–4x cheaper per unit of heat produced.
Tank vs. Tankless Gas Water Heaters
Tank water heaters store 50–120 gallons of pre-heated water. They are simpler, less expensive upfront, and easier to service. The downside: standby heat loss (constantly keeping water hot even when no one is using it) wastes 15–25% of the energy they consume.
Tankless (on-demand) water heaters heat water only when demanded, eliminating standby heat loss. They can deliver essentially unlimited hot water — important for large laundromats where peak hot water demand can exceed the capacity of a single storage tank. Upfront cost is higher and they require larger gas lines and ventilation, but operating savings typically justify the premium within 3–5 years for high-volume stores.
BTU Sizing for Laundromats
| Store Size | Washer Count | Peak Hot Water Demand | Recommended Capacity |
|---|---|---|---|
| Small (8–12 washers) | 8–12 | 25–45 GPH | 75,000–120,000 BTU tank or 180,000 BTU tankless |
| Medium (14–22 washers) | 14–22 | 45–80 GPH | 2× 40-gal tank or 300,000–400,000 BTU tankless |
| Large (24–40 washers) | 24–40 | 80–150 GPH | Multiple tanks manifolded or 500,000+ BTU commercial tankless |
| Mega (40+ washers) | 40+ | 150–250+ GPH | Commercial boiler system or multiple large tankless |
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