Water heating with heat pumps can contribute to reduce carbon dioxide emissions and meet and sustainability goals due to its high thermal efficiency, versatility in terms of alternative energy sources and thermal energy storage capability. In this study, the heat transfer of the condenser subsystem of an accumulation heat-pump water heater is analyzed by means of 2D CFD simulations. After validating the simulation methodology with benchmark natural convection problems, the influence of different geometric parameters of the condenser coil on the heat transfer is studied, which include the distance between coils and the distance from the tank wall. For each case, Nusselt number correlations in terms of Rayleigh number are found via power-law fitting. According to the CFD results, a greater coil pitch improves the average heat transfer. Moreover, a shorter distance from the tank wall generates a velocity field that laterally diverts the plume that forms around each coil. Hence, the heat transfer is enhanced because the preheating effect from downstream coils is mitigated, while the velocity gradients are strengthened. Additionally, a condenser design is proposed with geometric parameters that promote effective heat transfer, and the performance is compared against a reference design with geometric parameters that limit the heat transfer but are common in commercial solutions. The proposed geometry has a 43% increase in the Nusselt number, with respect to the reference geometry. Also, based on a dynamic simulation model of heat pump performance, it is determined that, for the same operating conditions, the proposed geometry improves the overall coefficient of performance (COP) of the system by up to 7%. These results highlight the importance of the geometric design of the condenser in heat-pump water heating systems, since they can contribute to a better overall performance and a more efficient thermal storage.