Choosing a Tankless Water Heater: What Really Matters?


Learn what factors matter when choosing a tankless water heater, from efficiency and sizing to venting, drainage, installation, and cost.

 A new water heater is a long-term investment, so choosing a model based only on purchase price can be a mistake.

Tankless systems heat water as it is needed, but gas-fired models come with different technologies. The two common categories are condensing and non-condensing.

Condensing units capture additional heat from exhaust gases. This improves efficiency but requires condensate drainage.

Non-condensing units use a single primary heat exchanger and vent hotter exhaust. Their simpler design can make them suitable for some replacement projects.

When comparing models, look at:

  • Hot-water demand

  • Unit capacity

  • Efficiency

  • Venting

  • Gas supply

  • Installation space

  • Condensate drainage

  • Maintenance

  • Total installation cost

A professional assessment is especially important when replacing an existing gas water heater because the new unit may have different venting requirements.

For more information, read this guide to choosing between condensing and non-condensing tankless water heaters

The best water heater is not necessarily the most expensive or most efficient model. It is the one that fits the home's actual requirements.