Abstract The energy demand for supplying Domestic Hot Water (DHW) has an important share in the overall thermal energy consumption of commercial buildings. The aim of this paper is to analyze the performance of DHW production in commercial public service, i.e., educational buildings, to subsequently identify frequent inherent shortcomings of centralised DHW installations and to provide measures for optimization or economically more viable solutions. Several buildings of the University of Natural Resources and Life Sciences in Vienna have been investigated in terms of DHW consumption and performance of the installed centralised systems. Referring to the investigated university buildings, it can be stated, that in cases of low to medium consumption figures, typical centralized DHW installations with a hot water circulation pipework achieve only poor efficiencies in the range of 2–12%. As for one particular centralized DHW system in operation, focusing on demand controlled DHW supply through adapted flow control, e.g., reducing the runtime of the circulating pumps at specific time intervals, and, if applicable and feasible, decreasing hot water flow- and storage capacities can reduce annual energy consumption for DHW by 15–25% and improve the overall system efficiency significantly as could be evaluated in a detailed case study. A seemingly economical yet ecologically controversial option for improving centralised DHW systems is the partial or complete conversion to electric point-of-use water heaters. This reduces thermal energy losses almost completely, hereby significantly increasing the efficiency of a DHW supply system. Nevertheless, existing hot water supply systems, energized by district heating, usually consume less primary energy and most likely generate fewer CO2 emissions compared to electric DHW heaters.