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Condensing vs Non-Condensing Tankless Water Heaters

Heaters Reviews, March 31, 2025April 8, 2025

When it comes to modernizing your home’s hot water system, tankless water heaters have become a popular choice due to their efficiency, compact size, and convenience. However, choosing the right type of tankless water heater for your home can be a bit tricky, especially when faced with the decision between condensing and non-condensing models. Both types offer distinct advantages, but understanding the key differences can help you make an informed choice that fits your budget, energy needs, and long-term goals. In this guide, we will compare condensing and non-condensing tankless water heaters to help you make an informed decision.

Condensing vs Non-Condensing Tankless Water Heaters

Condensing Tankless Water Heaters

Condensing tankless water heaters are known for their exceptional energy efficiency, making them a popular choice for homeowners who want to reduce their utility bills and environmental impact. These systems are designed to capture and reuse heat that would otherwise be wasted, offering significant advantages over traditional non-condensing models.

How They Work?

Condensing tankless water heaters utilize a heat exchanger that extracts heat from the exhaust gases produced during the water heating process. When the hot exhaust gases exit the system, they pass through a secondary heat exchanger where they are cooled down. The heat from these gases is then transferred to the incoming cold water, which reduces the amount of energy required to heat the water. This process allows condensing units to achieve a higher energy efficiency rating compared to non-condensing models.

Energy Efficiency

One of the standout features of condensing tankless water heaters is their high energy efficiency. These systems can operate at an efficiency level of up to 98%, meaning that almost all of the energy used to heat the water is effectively utilized. In comparison, non-condensing models typically operate at about 80-85% efficiency. By capturing and reusing the heat from the exhaust gases, condensing water heaters minimize energy waste, making them ideal for homeowners looking to save on their energy bills.

Benefits of Condensing Technology

  1. Reduced Energy Consumption
    Because condensing models make use of the heat from exhaust gases, they require less fuel to produce the same amount of hot water as non-condensing units. This reduction in fuel usage directly translates to lower utility costs, particularly for larger homes or those with higher water usage.
  2. Environmental Benefits
    With reduced energy consumption, condensing tankless water heaters also have a smaller carbon footprint. They produce fewer greenhouse gas emissions compared to traditional systems, which is an important factor for environmentally-conscious homeowners. As the demand for green technology increases, condensing units are becoming a popular choice for eco-friendly households.
  3. Longer Lifespan
    Due to the efficient heat exchange process, condensing water heaters tend to last longer than their non-condensing counterparts. Since the exhaust gases are cooled down and less corrosive, the components of the system face less wear and tear. As a result, homeowners can expect fewer maintenance issues and a longer service life from their condensing tankless water heaters.

Installation Considerations

While condensing tankless water heaters are highly efficient, their installation is more complex compared to non-condensing models. The main challenge lies in the venting system. Condensing units require a special venting system made from materials like PVC or CPVC, which are resistant to the acidic condensate created during the cooling process. Proper venting ensures that the system operates safely and efficiently. Homeowners should work with a professional installer who can assess the home’s needs and install the system correctly.

Additionally, because condensing water heaters are more efficient, they often require larger intake and exhaust pipes, which can make installation more difficult in certain spaces. The complexity of the installation process can also contribute to higher upfront costs compared to non-condensing models.

Ideal Uses for Condensing Tankless Water Heaters

Condensing tankless water heaters are best suited for households with higher water usage or those looking to make long-term energy savings. If you live in a climate with colder water temperatures or if you have multiple bathrooms, a condensing system’s efficiency becomes even more important. These units are particularly beneficial for large families, homes with multiple occupants, or places where consistent hot water demand is high.

Maintenance Needs

While condensing units are durable, they do require some maintenance to ensure optimal performance. The primary maintenance task is the periodic flushing of the system to remove mineral buildup. This is especially important in areas with hard water, as mineral deposits can accumulate in the heat exchanger, reducing efficiency over time. Regular maintenance, such as annual inspections and cleaning, can help extend the lifespan of the system and maintain its energy efficiency.

List of the Best Condensing Tankless Water Heater:

Image

Product

Rating

Rinnai RXP199iN Condensing Tankless Water Heater

Best Choice

5/5

View on Amazon


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Rheem RTGH-95DVELN-3 Condensing Tankless Water Heater

4.5/5

View on Amazon


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Rinnai CU160iN Condensing Tankless Water Heater

4.5/5

View on Amazon


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Non-Condensing Tankless Water Heaters

Non-Condensing Tankless Water Heaters

Non-condensing tankless water heaters are a popular choice for homeowners seeking an efficient, reliable, and relatively simple solution to their hot water needs. While they don’t offer the same level of energy efficiency as condensing models, they still provide significant benefits, particularly for those with lower upfront budgets or less complex water heating requirements.

How They Work?

Non-condensing tankless water heaters work by heating water directly through a combustion process. The system burns fuel (usually natural gas or propane) to produce hot combustion gases, which then pass through a heat exchanger. As the hot gases travel through the heat exchanger, they transfer their heat to the cold water flowing into the system. The heated water then exits the unit and is distributed throughout the home.

Unlike condensing models, non-condensing units do not recycle the exhaust gases. The combustion gases are expelled directly through a venting system, which is typically made of stainless steel or other durable materials. This venting system must be designed to withstand the higher temperatures of the exhaust gases since non-condensing models do not lower the temperature of the gases before releasing them.

Energy Efficiency

Non-condensing tankless water heaters are generally less energy-efficient than their condensing counterparts. These units typically have an efficiency rating of around 80-85%, meaning that a portion of the energy used to heat the water is lost through the venting system. Since non-condensing units do not reuse the heat from the exhaust gases, they consume more energy to provide the same amount of hot water compared to condensing systems.

While they are not as efficient, non-condensing water heaters still offer better energy savings compared to traditional tank-based systems, which can be very inefficient due to standby heat loss. If energy efficiency is not the highest priority, non-condensing models are a viable option for homeowners who need a more cost-effective solution.

Benefits of Non-Condensing Technology

  1. Lower Initial Cost
    One of the key advantages of non-condensing tankless water heaters is their lower upfront cost. The simpler design and absence of complex heat exchangers or condensate drainage systems make these units more affordable compared to their condensing counterparts. Homeowners on a tight budget or those looking to replace a traditional tank water heater without a significant investment often turn to non-condensing models for a more economical solution.
  2. Easier Installation
    Since non-condensing units do not require special venting systems (like the PVC or CPVC piping needed for condensing models), they are typically easier and faster to install. The venting requirements for non-condensing systems are also less complicated, meaning fewer modifications to the home are required. As a result, installation costs tend to be lower, which is an appealing factor for many homeowners.
  3. Reliability and Simplicity
    Non-condensing tankless water heaters have a simpler design and fewer components, which can translate to increased reliability. There are fewer parts that can wear out or need maintenance, and the technology has been around longer, making it a well-established solution for many households. For homeowners who prioritize simplicity and durability, non-condensing units are a solid choice.

Limitations of Non-Condensing Tankless Water Heaters

  1. Higher Energy Usage
    Non-condensing units use more energy to heat the same amount of water compared to condensing models, primarily due to the inability to recycle the exhaust gases. This can lead to higher utility bills over time, especially in larger homes or in situations with consistent high hot water demand. Homeowners may see a greater impact on their energy costs with non-condensing models when compared to more efficient options.
  2. Greater Venting Requirements
    Since non-condensing units produce hotter exhaust gases, they require more robust venting systems. These systems must be made of materials capable of withstanding high temperatures, like stainless steel, and must be installed properly to ensure the safe expulsion of gases. Improper installation or venting can result in safety hazards, so professional installation is highly recommended.
  3. Potential for Increased Carbon Emissions
    Because non-condensing units do not recycle exhaust gases, they tend to emit more CO2 compared to condensing systems. For environmentally-conscious homeowners, this can be a downside, especially in areas where reducing carbon emissions is a high priority. Although non-condensing models are still a more eco-friendly option than traditional tank water heaters, they fall short of the environmental benefits offered by condensing units.

Ideal Uses for Non-Condensing Tankless Water Heaters

Non-condensing tankless water heaters are best suited for households with moderate water usage and where the installation of a more complex venting system is not feasible. Smaller homes or properties with lower hot water demand can benefit from the simplicity and lower cost of these units. Additionally, if you live in a warmer climate with less need for high-efficiency systems or if you are working with a limited budget, a non-condensing unit may provide a good balance of performance and cost-effectiveness.

Maintenance Needs

While non-condensing tankless water heaters require less maintenance than condensing models in terms of the heat exchanger, they still need regular attention. One key maintenance task is ensuring that the venting system is free of blockages or corrosion, especially since the exhaust gases are hotter and can lead to faster wear on the materials. Regular flushing of the system to prevent mineral buildup is also necessary, particularly in areas with hard water.

Since these systems are simpler in design, maintenance costs can often be lower. However, homeowners should still perform annual inspections and keep the unit clean to ensure it operates efficiently over its lifespan.

List of the Best Non-Condensing Tankless Water Heater:

Image

Product

Rating

Rheem RTG-70XLN-3 Non-Condensing Tankless Water Heater

Best Choice

5/5

View on Amazon


label

Rinnai RE180iP Non-Condensing Tankless Water Heater

4.5/5

View on Amazon


label

Rheem RTG-70DVLN-3 Non-Condensing Tankless Water Heater

4.5/5

View on Amazon


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Condensing vs Non-Condensing Tankless Water Heaters: A Comparison

Condensing vs Non-Condensing Tankless Water Heaters: A Comparison

When it comes to choosing between condensing and non-condensing tankless water heaters, several factors need to be considered to make an informed decision. Both types have their unique advantages and limitations, and the best option depends on your specific needs, budget, and priorities.

Energy Efficiency

The most significant difference between condensing and non-condensing tankless water heaters is their energy efficiency. Condensing models are designed to capture heat from exhaust gases and use it to preheat incoming water, making them more energy-efficient than non-condensing models, which release the exhaust gases without reusing the heat.

FeatureCondensing Tankless Water HeaterNon-Condensing Tankless Water Heater
Efficiency RatingUp to 98%80-85%
Energy SavingsHigher long-term savingsLower energy savings
Energy UsageLower overall consumptionHigher overall consumption

Condensing systems typically save more energy, resulting in lower utility bills over time. Non-condensing units, while still efficient compared to traditional tank water heaters, use more energy to heat the same amount of water, leading to higher operating costs.

Installation Costs and Complexity

The complexity of installation differs significantly between the two types of water heaters. Condensing units require more sophisticated venting systems and specialized materials to handle the acidic condensate produced during the cooling process. As a result, the installation tends to be more expensive and time-consuming. Non-condensing models, on the other hand, have simpler venting requirements, making them easier and quicker to install.

FeatureCondensing Tankless Water HeaterNon-Condensing Tankless Water Heater
Initial Installation CostHigherLower
Installation TimeLongerShorter
Venting RequirementsSpecial materials (PVC, CPVC)Standard stainless steel venting

While the upfront cost for a condensing unit is higher due to installation complexity, it is important to consider the long-term energy savings, which can offset this initial expense.

Environmental Impact

The environmental impact is another area where condensing tankless water heaters have a clear advantage. Condensing systems are more efficient, which means they use less fuel and produce fewer emissions. Non-condensing units, with their lower efficiency, tend to emit more carbon dioxide and contribute to a larger carbon footprint.

FeatureCondensing Tankless Water HeaterNon-Condensing Tankless Water Heater
CO2 EmissionsLower emissionsHigher emissions
Environmental ImpactEco-friendlyLess eco-friendly

If reducing your carbon footprint and environmental impact is a priority, a condensing tankless water heater is the better choice.

Cost of Ownership

Although condensing units have a higher upfront cost, their superior energy efficiency often leads to significant savings on utility bills over time. Non-condensing units, while less expensive initially, tend to have higher energy consumption, which can increase operating costs in the long run.

FeatureCondensing Tankless Water HeaterNon-Condensing Tankless Water Heater
Upfront CostHigherLower
Annual Operating CostsLower (due to energy savings)Higher (due to higher energy usage)
Long-Term SavingsSignificant energy savingsMinimal savings

Homeowners looking for long-term savings on energy bills should consider the condensing model, especially if they expect high or consistent hot water demand.

Maintenance

In terms of maintenance, non-condensing tankless water heaters require less attention. The simpler design and lack of a complex heat exchange process mean fewer parts are prone to wear and tear. Condensing units, while efficient, have more components that may require maintenance, such as the heat exchanger and condensate drainage system. Both models will need annual inspections and occasional flushing to prevent mineral buildup, but the condensing unit may require more frequent attention due to its more intricate design.

FeatureCondensing Tankless Water HeaterNon-Condensing Tankless Water Heater
Maintenance FrequencyHigher (due to complex components)Lower (simpler design)
Common Maintenance TasksFlushing heat exchangers, cleaning condensate pipesFlushing heat exchangers

While both systems are relatively low-maintenance compared to traditional tank heaters, the increased complexity of the condensing unit can lead to more frequent service needs.

Suitability for Different Households

The suitability of a condensing vs non-condensing tankless water heater largely depends on the size of the household, water usage, and climate. Condensing models are best suited for larger homes, high-demand households, or those in colder climates, where energy efficiency and consistent hot water supply are crucial. Non-condensing units, with their lower upfront cost and simpler installation, are ideal for smaller homes or properties with moderate water usage.

FeatureCondensing Tankless Water HeaterNon-Condensing Tankless Water Heater
Best ForLarger homes, high water demandSmaller homes, moderate water demand
Climate ConsiderationsIdeal for colder climatesSuitable for warmer climates

Homeowners with high hot water needs or those looking to future-proof their systems against rising energy costs may prefer the condensing option, while those with limited space and budget may find non-condensing systems a more practical choice.

Conclusion

In summary, both condensing and non-condensing tankless water heaters offer valuable benefits depending on your specific needs. Condensing models are more energy-efficient, environmentally friendly, and cost-effective in the long run, making them a great choice for larger homes and those who prioritize energy savings. On the other hand, non-condensing units are more affordable initially, easier to install, and reliable for smaller households with moderate water demand.

Enjoyed this guide of condensing vs non condensing tankless water heater? Then be sured to check out our other heaters reviews.

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