Why traditional storage systems create inefficiencies
Centralised systems are generally designed around peak demand assumptions. To ensure hot water is always available, these systems rely on stored volume and continuous circulation to maintain temperature across the building.
This is an effective approach, but it’s one that comes with trade-offs, including:
These inefficiencies are often built into the design long before the building is even operational.
Designing around demand instead of storage
The old model of ‘store and circulate’ creates unnecessary operational waste, causing financial, environmental and design consequences. Because of this, modern hot water design is moving towards a more demand-based approach. Point-of-use systems heat water closer to where it is needed, reducing reliance on large central plant infrastructure and aligning system performance with how a building will actually use water.
Hot water demand across a building isn’t simultaneous. Usage varies throughout the day, across different outlets and between residents. And yet, many hot water systems are still designed around conservative peak assumptions rather than real-world demand.
Designing around demand helps reduce unnecessary infrastructure and improve whole-system efficiency.
Where this approach makes the most sense
Every project is different. Some high-demand environments like multi-residential apartment buildings or aged care facilities might get the most out of 3-phase electric point-of-use systems that support multiple outlets and don’t rely on large central storage.
Whereas, in commercial spaces, single-outlet applications like basins and sinks are suited to smaller, localised single-phase systems that reduce wait times and water waste.
For other projects, compact small storage can provide a practical alternative where localised hot water is needed without the unnecessary complexity of a larger system.
The goal is to match the system to how the building actually uses hot water.
Is point-of-use hot water better than centralised storage?
The right solution depends on how hot water is used, building type and system requirements.
For modern commercial and multi-residential projects, point-of-use systems can reduce energy loss, water waste and unnecessary infrastructure by heating water closer to where it’s needed. In other cases, compact small storage solutions may be a better fit.
Better system design
Replacing traditional hot water tanks is not just a product decision. It’s a system design decision. When hot water systems are designed around actual demand rather than assumptions, it leads to simpler infrastructure, improved efficiency and better project outcomes across energy use, water performance, installation and long-term operation.
As more buildings move away from gas and towards electric systems, rethinking how hot water is delivered is becoming a necessity.
