Condensing vs Non-Condensing Tankless Water Heater: Settling The Debate

Mark Jonas

Comparison, Blog

Tankless water heaters are becoming an excellent choice for homeowners who are trying to conserve energy and space. Unlike typical water heaters, tankless water heaters provide hot water on demand without needing a huge tank. From my personal experience, I can say that tankless water heaters are great when it comes to saving energy costs and being reliable. 

When selecting a tankless water heater, there are two main types to consider: condensing and non-condensing. Each has its unique set of pros and cons, making it difficult to choose between them. 

Well, are you looking to install one but need help knowing which one is right for you?

Don’t worry; we’re here to help!

In this article, we’ll break down all the essential facts you need to know to make an informed decision. I’ll be guiding you through and through with my years of plumbing experience, review and feedback from clients, and talks with industrial experts.

What is a Condensing Tankless Water Heater?

A tankless condensing water heater heats water on demand rather than keeping it in a tank. Its consistent hot water supply design makes it popular.

It’s not something I had ever considered before, but it quickly became apparent that they offered some significant advantages.

The heater preheats the incoming water using heat from the exhaust gases (range of 120°F-140°F). It condenses the water vapor in the exhaust gasses into liquid form, which then drains.

At first, I was a little reluctant to try out this new technology therefore I did some research and asked for reviews from people who already owned them. Here is what a few of them said:

Jim said “My recent experience with the Rinnai RU199iN tankless water heater has been excellent! It’s like the ninja of water heaters – quiet and incredibly efficient in performance.”  

Another friend of mine Emily shared her review too she said” I was initially hesitant about switching to a condensing tankless water heater due to the higher upfront cost. However, after hearing about its long-term benefits from our mutual friend and conducting my research, I decided to take the plunge. And its performance has exceeded my expectations”.

What is a “condensing unit” in a tankless water heater?

In a tankless water heater, the “condensing unit” is the component that condenses exhaust gasses. It’s only found in condensing tankless water heaters and accounts for their higher efficiency rate.

PROS
  • Higher efficiency rate (up to 98%)
  • Compact
  • Lower carbon emissions
  • Energy saving
  • Cost-effective maintenance
CONS
  • Expensive
  • Requires special venting and piping
  • Tricky to install

Advantages of Condensing Tankless Water Heater

Are you curious about the advantages of Condensing tankless water heaters? Here’s a closer look at the perks they offer.

Compact

The condensing tankless water heaters are compact, space-saving, and easy to install in small areas. This feature makes them an excellent choice for those with limited home or workspace.

Ideal for Cold Climate

Yes, you heard correctly.

Unlike non-condensing types, condensing models have a secondary heat exchanger making them much more efficient in cold weather conditions. Thanks to their rapid heating mechanism.

Most of my friends who live in colder areas have said that the condensing tankless water heater is a savior for them, it is ideal for cold places.

Ultra high-efficiency rate

You may use standard PVC pipes for the air exhaust and save money on costly pipes.  As a result, they are more efficient.

Also, a condensing tankless water heater is the way to go if you want to save money on your energy expenses. It has an efficiency rating of up to 98%, making it more eco-friendly and cost-effective in the long term.

Condensing tankless heaters are without a doubt the most efficient water heaters out there and can save you a lot on energy bills. According to  American Counsel Condensing natural gas tankless water heaters have Energy Factors greater than 90%, potentially saving more than 470 trillion Btus each year.

Consistent hot water supply

As mentioned above, this water heater is designed to continually flow hot water on demand. So you’ll never have to wait for a tank to fill up before taking a hot shower.

As a result, it’s an excellent choice for homes desiring a constant, on-demand hot water supply.

Disadvantages of Condensing Tankless Water Heater

Before making a decision, it’s crucial to look at the drawbacks of condensing tankless water heaters.

Cost

A condensing tankless water heater is more costly than its non-condensing cousin due to its condensing feature. The initial cost of condensing units may stun you as they vary from 600$-1900$.

Complex Installation

A condensing tankless water heater requires special venting and piping. The complexity of the condensation feature can make the system tricky to install. You’ll need a professional to install it; it may be an additional expense.

I have witnessed that people are hesitant to buy condensing water heaters because of their high cost compared to traditional non-condensing heaters. If they were more reasonably priced I’m sure people would buy them more.

Maintenance

Another drawback of this type of heater is the need to drain excess condensate with acidic pH. Over time it can erode your venting system. They require routine maintenance to perform effectively.

Make sure to frequently check that your vent system is in tip-top condition.

A user on a forum stated “Complex heaters need maintenance, but getting people to change is hard. So, I feel that tankless has a place, but should not be oversold.” And I fully agree with his statement. I’ve had far more maintenance calls from owners of condensing water heaters than non-condensing. 

What is a Non-Condensing Tankless Water Heater?

If you’re on a tight budget and are okay with losing a little efficiency, then a non-condensing tankless water heater is your best friend. It’s more affordable and more dependable.

This design is similar to a condensing tankless water heater but differs in a few ways. This type of water heater heats water as it passes through a single heat exchanger.

Non-Condensing, unlike Condensing tankless water heaters, don’t have a condensation feature. They simply vent the exhaust gasses out of the system without capturing any extra heat.

Generally, people who don’t have the capital to meet the upfront cost of condensing water heaters opt for this version. 

Most of the house owners I came across who wanted a non-condensing unit placed said it was because of its low cost. A traditional non-condensing tankless water heater costs 10 to 15 percent less than condensing. 

PROS
  • Simple to install
  • Immediate drainage
  • Affordable upfront cost
  • Durable
  • Versatile
CONS
  • Lower efficiency rate (up to 80%)
  • long-term higher energy bills
  • Higher carbon emission

The key reasons behind the low cost on non condensing water heaters are:

Heat Exchanger Design: Non-condensing units have a simpler heat exchanger design, which is less expensive to manufacture than the secondary heat exchanger found in condensing units.

Venting Requirements: Condensing units often require special venting materials and installation due to the need to capture and condense exhaust gasses. Non-condensing units may have more straightforward venting requirements, reducing installation costs.

Advantages of Non-Condensing Tankless Water Heater

Now, look at some key features and advantages of Non-Condensing tankless water heaters.

Versatility

The best part of this type of heaters is that they are an excellent option for various types of buildings. No more worries, as condensate is not held in one place but travels through pipes.

So there’s no need for protection against exposure. You may install them in a variety of locations and setups as they are versatile and adaptable.

These are best for you if you move around and change houses a lot. One of my friends whose job requires him to move houses a lot recently bought the non-condensing tankless water heater and he says it made shifting houses a lot easier because it’s very portable and can be set up anywhere.

Hot Water on Demand

The non-condensing tankless water heaters give you endless hot water. Thus you’ll never need to worry about getting cold water again. They only heat the water you use, eliminating energy waste.

Long lifespan

Non-condensing tankless water heaters experience less wear and tear. There’s less to go wrong with them as there are fewer parts and less technology. I still have the non condensing water heater I purchased 9 years ago and it still works just fine. This is proof of its longevity.

They are durable since they vent away the extra heat created during the heating process. This feature reduces corrosion and damage to the unit and increases its lifespan.

On average, you can expect a non-condensing tankless water heater to last around 15 to 20 years or even longer with proper care and maintenance.

Disadvantages of Non-Condensing Tankless Water Heater

Non-condensing water heaters may seem like a classic option, but they have some downsides. We’ve got the list, so you don’t have to look for them alone!

Less efficiency rate

They are less energy efficient than condensing tankless water heaters, which leads to higher energy bills in the long run. This might be a significant drawback if you want to reduce energy costs.

Having used both non-condensing and condensing tankless water heaters in various real-world scenarios, I can attest to the noticeable difference in efficiency. Non-condensing units are indeed less energy-efficient, and this observation comes from years of monitoring my energy bills.

One instance that stands out was when I replaced my father’s aging non-condensing tankless water heater with a condensing model. In the months following the upgrade, I saw a significant drop in his energy bills. This firsthand experience confirmed the energy-saving advantages of condensing units.

Maintenance

Non-condensing tankless water heaters need frequent maintenance, as the heat exchanger and other parts tend to deteriorate faster. You’d have to get pricey piping (stainless steel) for the venting system.

Poor Cold Climate Performance

If you live in a colder climate and rely on hot water all year. Then you should think twice before getting a non-condensing tankless water heater.

Non- condensing units struggle to work in colder areas, resulting in inconsistent hot water supply throughout the winter.

Differences between a Condensing & Non-Condensing Tankless Water Heater

When buying a tankless water heater, there are several factors to consider. We’re here to assist you with all the information you need to differentiate between condensing and non-condensing models.

Size

Selecting a good-sized tankless water heater for your home or workplace is crucial. Ask yourself how much hot water you usually use in your household work. If you’re purchasing for the first time, keep your family in mind.

If the unit is undersized, it can’t satisfy your hot water demands. If it’s oversized, It’ll be a waste of money. Ensure choosing the correct size for your household needs.

Non-condensing models are typically smaller and an excellent choice if you’ve limited space and modest hot water demand. Condensing models may be a good bet to manage a higher volume of hot water.

Price

Price is a significant factor when selecting tankless water heaters. It depends on the type and dimensions of the unit.

Keeping your budget in mind, you should get a good-quality one to avoid regretting it later. A non-condensing unit is a way to go if you want the convenience of hot water and avoid paying the extra upfront cost.

Capacity and Flow rate

Capacity is basically the large amount of hot water a tankless water heater can produce per minute. Be cautious about capacity and upgrade to a slightly larger size to ensure you have enough capacity to meet your needs.

When deciding the size of a tankless system, consider the flow rate (2.5-5 GPM – gallons of hot water per minute).

For high hot water demand, a condensing tankless water heater wins the game. Since it’s larger, more powerful, and energy efficient. On the other hand, a non-condensing tankless water heater often has a lower capacity and flow rate.

Warranty

Looking for peace of mind and long-lasting investment? Checking the manufacturer’s warranty is an essential factor.

Warranty depends on the manufacturer and the specific model. However, the standard warranty coverage of tankless water heaters depends on these three:

  • Parts warranty (2-5 years)
  • Labor warranty (1-2 years)
  • Heat exchanger warranty (10-20 years).

Both condensing and non-condensing systems can provide you with hot water for years to come. Invest in quality, and you won’t regret it!

Energy Efficiency:

The EF rating measures the energy efficiency of tankless water heaters. The acceptable EF rating ranges from 0.82-0.98. Higher rating indicates that the unit is more energy efficient.

Condensing feature ensures that the heater requires less energy to heat the water, resulting in a higher efficiency rate. Condensing tankless water heaters often have better EF ratings than non-condensing heaters.

Comparison Table

Comparison FactorsCondensingNon-Condensing
WorkingHave a primary & secondary Heat exchanger; Recaptures heat from the exhaust gases.Have one Heat exchanger; the exhaust gases are vented out of the system.
Energy efficiencyHigherLower
Initial costHigherLower
MaintenanceTricky to installEasy to install
Carbon footprintLowerHigher
Ideal ClimateColderWarmer
 Hot water demandHigherLower
DrainageNecessary to drain the condensation at the bottom of the heater.If vented horizontally, draining the condensate is not necessary.
Combustion temperatureLowerHigher (up to 356°F/ 180°C).
SizeSlightly largerMore compact
Venting materialFlexible venting material (PVC) Metal

FAQs

Which tankless water heater is more efficient?

It’s a tie! Both types have unique advantages and disadvantages. The most efficient option for you depends on your specific needs and priorities. Make sure to weigh each type’s pros and cons before deciding.

Is condensing better than a non-condensing tankless water heater?

To summarize the choice, condensing tankless water heaters:

  • Operate at a lower BTU.
  • Cost less to vent (no more need for expensive venting pipes)
  • Ultra-high efficient and more effective.

Although, both heaters emit trace quantities of toxic vapors into the atmosphere.   Nonetheless, condensing units have a lower carbon footprint.

Is a condensing tankless water heater worth it?

Yes, it’s well worth it when you consider the purchasing and installation costs. Wouldn’t you instead invest more in a superior tankless heater and less in installation?

An ideal tankless water heater will offer many more benefits than costly venting and maintenance!

Which Tankless Water Heater is Better – Final Verdict

Both condensing and non-condensing tankless water heaters provide benefits and drawbacks. The choice is all yours!

Considering the elements is essential because a wrong decision can cost you far more. Reflect your needs and choose the suitable tankless water heater for you.

If you’re thinking about whether you should go for a condensing tankless water heater? Yes, you should; it’s the better choice since it’s more energy-efficient and eco-friendly.

Still, it’s entirely up to you. Good Luck!

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