The two-stage compression cascade heating heat pump cycle was devised for hot water supply in business use such as hotel and store use which allows hot water supply less in primary energy consumption than gas boilers, and higher in temperature than conventional heat pumps. This cycle heats water in cascade manner by two-stage compression using two compressors in both low- and high-stage refrigerant circuits, and two condensers different in condensation temperature (intermediate heat exchanger and condenser) to achieve higher hot water temperature and higher COP. For cost reduction, the new system design method was established which is possible to cope with conventional compressors such as screw and scroll ones with different theoretical suction volume for every one. System design parameters such as thermal output and COP of hot water supply were largely affected by theoretical suction volume ratio of low- and high-stage compressors dependent on combination of the compressors, and refrigerant condensing temperature in an intermediate heat exchanger as proper parameter. 4 refs., 17 figs., 13 tabs.