Research Finds Gas Still Most Specified Means For Commercial Water Heating

September 2024

According to research conducted on behalf of hot water specialist Adveco into the adoption of low-carbon technology gas-fired applications continue to dominate the UK commercial landscape.

Of the 2,800 commercial sites specifying new or refurbished hot water systems between 2019 and 2023, the research demonstrated 74% had committed to gas-fired appliances. Despite the introduction of a limitation on new gas grid connections for heating systems in 2022, gas remained the popular option throughout 2023 with installations rivalling and even exceeding numbers recorded in 2019 across major vertical sectors including education, healthcare and catering.

While new build focuses on electric water heating and heat pumps, the retrofit market has predominantly remained on gas, despite most locations (73%) stating commitments to net zero. When questioning consultants and contractors, heat pumps will always be specified for heating, but the majority stated heating and hot water in many cases are best left separate, which from a design perspective makes absolute sense.

While hybrid hot water systems are being specified for new build, for retrofit the majority of those questioned confirmed that while initially leaning toward heat pumps, they were encountering problems with costs, infrastructure and design.

The research also identified concerns relating to European regulation changes on refrigerants, and the safety of propane units, also highlighted recently by the Building Engineering Services Association (BESA).

As a result, specifications are being revised back to gas when connections are available. Reasons cited in the research included gas being much simpler, familiar, and cost-effective to replace and run as 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. A proportion of the refurbishment work recorded in the resaerch was driven by a need to replace ageing systems rather than actively addressing energy efficiency to reduce carbon emissions.

For commercial premises with an existing gas connection upgrading to new condensing gas-fired appliances remains an option without fear of breaching new building regulations until 2035.

With working lifespans of at least 15 years for well-maintained water heaters that option takes many buildings well into the 2040s when the expectation is that the next generation of proven renewables or grid green gas (hydrogen) will likely be more cost-effective alternatives. Given expectations that approximately 70% of existing non-domestic building stock will still be in use by 2050, this exposes a major requirement for the government to clarify and invest in future energy sources to enable widescale, nationwide transition to low-carbon energy before 2050.

For businesses using gas and intending to refurbish hot water applications, Adveco offers comprehensive metering services to assess demands and generate advanced theoretical modelling to shape sustainability strategies and deliver a lower-cost transition to electric water heating.

For organisations with high, daily hot water demands, or site complexities such as a lack of external space which can curtail the use of heat pumps or solar thermal systems Adveco offers two ranges of direct-fired condensing water heaters – the AD and the ADplus for instantaneous demands. Both ranges provide a compact, floor-standing design that is easy to introduce into an existing plant room. High efficiency translates into 30% savings in fuel consumption, making it more cost-effective while reducing emissions. Both AD and ADplus exhibit ultra-low NOX and CO emissions. 20% hydrogen-blend ready out of the box, the AD & ADplus can help bridge towards the next generation of more cost-effective sustainable technologies.

Those systems with gas as a primary energy source can still make commitments to net zero through the application of solar thermal as a source of pre-heat to offset at least 30% of annual energy demands. Between 2019 and 2023 the adoption of solar thermal exhibited consistent growth as recognition of its ability to actively cut operational costs of gas and electricity-based applications and reduce carbon emissions for faster return on investment has influenced its specification. On many accounts, solar thermal was perceived as the easiest and most effective way of offsetting existing gas-fired systems for active investment in measurable sustainability.

Resources for ADVECO LTD