Condensing vs Non-Condensing Tankless Water Heaters

When choosing a tankless water heater, one of the key decisions is whether to go with a condensing or non-condensing model. Understanding the differences can help you choose the most efficient and cost-effective option for your home.

🔷 What is a Condensing Tankless Water Heater?

A condensing tankless water heater utilizes a secondary heat exchanger to capture and reuse the heat from exhaust gases. This means less energy is wasted and the unit operates more efficiently.

• ✅ Higher efficiency (up to 98%)
• ✅ Reuses heat that would otherwise be lost
• ✅ Lower exhaust temperature = safer venting
• ✅ Often made with stainless steel heat exchangers

🔻 What is a Non-Condensing Tankless Water Heater?

A non-condensing model uses only a primary heat exchanger and vents the hot exhaust gases directly. While still more efficient than tank-style heaters, they are less efficient than condensing models.

• ⚠️ Slightly lower efficiency (80–85%)
• ⚠️ Higher exhaust temperatures = special venting required
• ⚠️ Generally lower upfront cost

🤔 Which One is Right for You?

Condensing tankless water heaters are better for energy-conscious homeowners or those in colder climates. Non-condensing units may be ideal for warmer regions or when upfront cost is a major concern.

🟢 Choose Condensing If You Want:

• Long-term energy savings
• Lower emissions
• Stainless steel durability

🟠 Choose Non-Condensing If You Want:

• Lower initial cost
• Simple installation with proper venting
• A basic upgrade from a tank system

Still not sure? Check out our comparisons page or browse our top-selling models for more inspiration.