Are Condensing Water Heaters Worth It? Condensing vs. Non-Condensing (2024)

Are Condensing Water Heaters Worth It? Condensing vs. Non-Condensing (1)

Whenever utility costs bog you down, you try and find a way to bring down the expenses. One of the ways you can reduce energy costs around your home is by switching your traditional tank heaters for tankless water heaters. As you shop for tankless water heaters, you can choose either condensing or non-condensing water heaters.

Condensing water heaters are worth it due to their lower cost and increased efficiency compared to non-condensing heaters. Installing a condensing water heater will drive down your energy usage, contribute less to environmental degradation, and improve your water heating efficiency from 85% to 95%.

Save Money on Energy Bills with Spa...

Save Money on Energy Bills with Space Heaters - Expert Insights

If you’re looking for the convenience of a tank water heater without the tank, you’re in the right place. Let’s see what you’ll gain if you replace your traditional water tank with a condensing heater system.

Are Condensing Water Heaters Worth It?

Condensing water heaters are worth it when you break down installation costs and purchasing costs. After all, you will save on energy and water bills.

Condensing water heaters cost up to $260 on running costs every year for the average household. This figure is an upper estimate, with lower figures indicating about $150—installation costs between $700 and $4600.

You have plenty of options for condensing water heaters. You can choose gas, propane, or electric-powered units. And this is where you can get wiggle room on installation costs.

In terms of green energy, you have two upsides. Condensing water heaters reduce water wastage and use less energy. The US government makes it easy for people to buy and install tankless condensing water heaters by including them in a $300 federal tax credit program for gas-powered systems.

If you’re not sold yet on the idea of condensing water heaters, you might be more open to the warranty variety. Putting up thousands of dollars in setup and installation costs might seem like a pinch on your finances right now. That is why you have to consider the durability of the condensing water heaters.

These units have a long lifespan if they are maintained well. Even better, they carry warranties varying from 5 years for some models to 15 years for other models such as Takagi water heaters.

Advantages of a Condensing Tankless Heater

1. You Get More Hot Water

Condensing tankless water heaters produce hot water as long as the cold water inlet is open. It circulates and recirculates water within the system, making sure very little is wasted. Most of the condensate that is a by-product is used in the heater instead of getting lost in the vent.

2. Cheaper Maintenance

While the condensate is acidic and could ruin the venting systems, the water pH is weaker than citric acid. Therefore, condensing tankless water heaters do not need expensive venting material to prevent corrosion. Condensing water heaters have PVC venting systems compared to stainless steel in some models of the non-condensing water heaters.

In the long run, it costs you less money to maintain a condensing tankless heater.

3. They Save Energy

Excess heat generated during water heating is recycled to make more hot water. Not only do you have continuous hot water in your faucets, you use less energy to maintain the set temperature. Low energy consumption translates to more cost savings in operation and maintenance.

All condensing tankless water heaters are now being manufactured to meet efficiency scores of more than 90%. In contrast, non-condensing water heaters operate at just above 80.

4. They are Better for Cooler Climates

The quick heating mechanism of tankless condensing water heaters makes them the best system in a cold climate. You can increase the water temperature that comes out of the heater without wasting any energy or pulling energy from any other heating system in the house.

5. Better Space Management

In general tankless water heaters can be installed in smaller spaces. The units are high-capacity without taking up too much area. That means you save more space when you replace your tank with a tankless water heater.

6. Smaller Carbon Footprint

More industries are focusing on systems that inflict less damage to the environment. Condensing tankless water heaters waste less energy because they recycle residual heat, produce negligible amounts of waste, and any waste is safely disposed into low-cost drainage systems. Most units come with an Energy Star to show they meet the criteria for environmentally-friendly, cost-saving appliances.

7. They are Safer For Homes

Everything in a tankless condensing water heater takes place inside the heater. There are fewer chances of electrical damage. And with it taking a small space to install, the risk of a major accident is minimal. Your family is safe with a self-contained tankless system.

Disadvantages Of a Condensing Tankless Water Heater

Though pro-efficiency energy policy says we should aim to go light and green with condensing tankless water heaters, there are concerns.

1. Corrosion

As mentioned, condensing tankless water heater drain excess condensate with a slightly acidic pH. Over time, the acidity begins to eat away at the venting system. You have to check regularly to make sure the vent system is in good operating condition.

However, to minimize the impact of corrosion, you can buy a condensing tankless water heater with PVC vents. Alternatively, you can go for a stainless steel vent system that costs more but lasts longer.

2. High Initial Setup Costs

Condensing tankless water heaters are pricey to put up. The unit can range from $600 for an EZ Tankless tankless to $1900 for a Rinnai model tankless water heater. Each of their prices is determined by the vending system and the size.

Condensing tankless water heaters with PVC vending might be more affordable than the ones with stainless steel venting systems.

3. Complicated Setup

Condensing water heaters are not an easy replacement if you’re overhauling your heating system from a traditional setup. You have to put in new gas lines and venting installations. The cost implications of this new setup might run into thousands if you consider the rates of plumbers and electricians.

How Does a Tankless Condensing Water Heater Work?

When you need hot water, cold water comes in from the inlet at the bottom of the heater. It ignites a flame in the two heat exchangers in the condensing tankless water heater. The water is heated as it passes through the secondary heat exchangers. Any latent heat is recaptured before it goes to the vent system.

The water keeps heating in the primary heat exchanger and exits through the outlet pipe to your hot water faucets. The water heater has a sensor that adjusts the hot water to the set temperature.

The hot water only stops flowing when you shut off the cold inlet until you need water again. You do not have any excess or unused water like in a tank water heater.

What Does a Condensing Tankless Water Heater Do?

At the core of it, a condensing tankless water heater provides you with hot water. However, the technology is different. A tankless water heater supplies you with continuous hot water without the added bulk of a tank. A condensing tankless water heater differs from a non-condensing by utilizing excess heat through another heat exchanger in the heating compartment.

Tankless water heaters don’t store water. They heat water as it runs from an inlet source through the heat exchanger to your bathroom. Condensing tankless water heaters don’t vent out the excess energy.

Instead, they retain it and use it to heat even more water. So not only does the condensing tankless give you more water than a non-condensing water heater, but it also does it by using less energy with a Uniform Energy Factor (UEF) of over 0.90.

Does a Condensing Water Heater Need a Drain Pan?

A condensing water tankless water heater heats water that flows from the inlet. During this heating process, you get water vapor. The vapor cools down, turning it into liquid. The condensate has to be drained.

You need a drain pan under your water heater if the heater is in a location where the acidic condensate can’t drain freely to an outlet. By law, drain pans are used when the heater is inside the living quarters.

The drained liquid has a pH of about three. Even though it is in small amounts, the condensate can build up in the tankless system and damage interior parts with its acidity. Fortunately, part of the efficiency factor in tankless condensing water heaters is that they can drain up to two gallons an hour.

Some high-efficiency water heaters have neutralizer agents that bring down the condensate’s acidity. The agent, in turn, protects the pipes and guarantees your tankless water heater a long lifespan.

Differences Between a Condensing & Non-Condensing Water Heater

Condensing Water HeatersNon-Condensing Water Heaters
They have a primary and secondary heat exchangerOnly have one heat exchanger
Lower combustion temperaturesHigh combustion temperatures up to 356°F/ 180°C.
Recycles extra heat in the condensing heat exchangerLoses 30% of the combustion gases through the flue
Lower carbon emissionsThey have more carbon emissions
It costs more to buy and set upLow initial purchase costs
Lower venting system maintenance cost as most heat is recycledHigh venting costs
Flexible venting material such as PVCMetal venting material
They have drain pans at the bottom of the heaterThey don’t have drain pans

Advantages of Non-Condensing Tankless Water Heaters

1. Immediate Drainage

Unlike their condensing counterparts, non-condensing water heaters don’t store excess condensate. Instead, any waste vapor dissipates and is lost to the immediate surrounding. While this ultimately leads to wasted energy and less efficiency, the internal systems are not exposed to acidity.

2. Energy Efficiency

Even with lower efficiency than condensing water heaters, non-condensing heaters perform better than conventional tank systems. 85% efficiency is a step up from systems that take up space, waste extra water, and drive utility costs super high.

Condensing Vs. Non-Condensing Water Heater for a New Home

Are Condensing Water Heaters Worth It? Condensing vs. Non-Condensing (2)

For all intents and purposes, condensing water heaters are better than non-condensing. The goal of any homeowner is to have minimal utility costs while getting the best deal out of their systems. Condensing water heater systems have lots of benefits, chief among them being energy saving.

If you are moving into a new home without a water heater, a condensing water heater is a better option. However, if your home already had a non-condensing water heater, you can upgrade to a newer model but stick to non-condensing. It will save you the installation costs since you won’t have to redo the venting systems.

Still, you can overhaul the entire system from non-condensing to condensing if you are willing to put up the cost of a new installation of the venting system.

Are Condensing Water Heaters Ideal for Large Families?

Condensing water heaters are ideal for either large or small families because they come in all sizes. A small family of 3 can benefit from a small condensing water heater. However, condensing water heaters have an outflow rate of 9 gallons per minute, while some have up to 11 gallons per minute, making them the perfect heating appliance for a 4-bathroom house.

These powerful units pack a punch, with BTUs as high as 199,000 and recovery rates of over 250.

What Does UEF For Condensing Water Heaters Mean?

The Uniform Energy Factor (UEF) is a standard efficiency measure for water heaters. It allows retailers to compare water heaters using a base number. Every water heater is now required to have a UEF rating.

It is the percentage of energy turned into hot water. A high UEF from 0.85 indicates a good efficiency percentage. However, when you window shop for tankless water heaters, you should be looking for water heaters with a 0.95 UEF.

Also, it is a cost estimate of how much it will cost you to run the unit. A tankless condensing water heater with a 0.90 UEF will cost about 90 cents on the dollar to run.

Conclusion

On-demand hot water is a great asset for your family. Making a switch to condensing tankless water heaters should be an easy choice to reduce your utility costs. However, before installing the system, make sure you get professional insight into whether the switch is suitable for your home.

It might cost you more to set up, but you will see better returns on your home investment after every year. You will also be contributing to a cleaner environment.

Sources

Share on FacebookShare on TwitterShare on PinterestShare on LinkedInShare on RedditShare on EmailShare on SMS
Are Condensing Water Heaters Worth It? Condensing vs. Non-Condensing (2024)

FAQs

Are Condensing Water Heaters Worth It? Condensing vs. Non-Condensing? ›

By recovering heat from the exhaust gases through the condensing process, condensing water heaters can achieve greater energy efficiency than non-condensing models. The recovered heat is used to help pre-heat the incoming cold water, reducing the amount of energy required to heat the water to its desired temperature.

Is condensing or non-condensing water heater better? ›

Not only is venting more cost effective with a condensing tankless water heater, but they're also more efficient. All condensing tankless water heaters run above 90% efficiency, while non-condensing tankless water heaters usually run in the 80% range.

Which is better non-condensing or condensing? ›

Condensing and non-condensing boilers both burn fuel, such as gas, but the main difference is that the energy efficiency of condensing boilers is up to 99% efficient while non-condensing boilers are only up to 78% efficient.

What are the advantages of a non-condensing tankless water heater? ›

Are non-condensing tankless water heaters better than condensing? It depends on your preferences: Non-condensing tankless water heaters offer more flexibility for installation because they don't require a drain. They're also smaller than condensing models, and need minimal maintenance.

Are condensing water heaters more efficient? ›

Why are Condensing Water Heaters more efficient? Condensing Water Heaters operate at around 95% efficiency, compared with 80-85% for standard water heaters. This is achieved by condensing the water vapour in the flue gasses and returning that heat back into the return water going into the water heater.

What is the disadvantage of condensing boilers? ›

They are expensive to maintain

Condensing boilers are more challenging to maintain because they are complex and require gas safe registered engineers, this will affect the boiler rates. It is easy to fix non-condensing boilers, meaning they will save you money for a short time.

How long does a condensing water heater last? ›

Condensing Water Heater

Cleaning the tank is just as important as the other styles, and it also may require you to clean the gas import valves once a year. They last around 6-10 years with proper care.

How efficient is a 25 year old boiler? ›

Over 25 years old: 60-70% efficient. 20 years old: 75% efficient. 15 years old 80-85% efficient. 10+ years old 80-85% efficient.

What are the arguments in favor of condensing boilers compared to older non-condensing boilers? ›

The main advantage is the boiler's efficiency. Through recycling waste gases back into the system, a condensing boiler can have approximately 90% energy efficiency. This is vastly superior to the efficiency of a traditional boiler which is typically between 70-80%.

Does condensing reduce pressure? ›

Reduce the volume a bit more and a bit more fluid will condense again lowering the pressure back to the vapour pressure.

What are two disadvantages of a tankless water heater? ›

Pros and cons of on-demand hot water
Pros of tankless water heatersCons of tankless water heaters
High efficiencyLimited flow rate
Long-term savingsHigh upfront cost
Environmentally friendlyCan require prior setup work
Jan 21, 2020

Do you have to vent a condensing tankless water heater? ›

Unlike gas or propane tankless water heaters, electric tankless water heaters do not need venting because they use electric burners to heat water rapidly. Since no natural or propane gas is used, no venting is needed.

Why aren t tankless water heaters more popular? ›

Energy Requirement

Tankless water heaters require a lot of energy for a short period, and many homes aren't ready to handle that kind of energy demand in the first place. If your panel has the capacity, you may need to install a dedicated circuit with an updated breaker to install an electric tankless water heater.

What is the best water heater for efficiency? ›

The 5 Best Water Heaters of 2023
  • Rheem Performance Platinum Series Gladiator 50-Gallon Electric Water Heater.
  • Rheem Performance Standard 40-Gallon Electric Water Heater.
  • Stiebel Eltron SHC Mini-Tank Electric Water Heater.
  • EcoSmart ECO MINI 2.5.
  • Rheem Performance Standard 38-Gallon Electric Water Heater.
Jun 5, 2023

Which type of water heaters save the most energy? ›

For example, an electric heat pump water heater typically is more energy efficient than an electric conventional storage water heater.

What is the most efficient water heater design? ›

Tankless (On-Demand) Water Heater

Rather than storing water, tankless water heaters use heating coils to heat the water as you need it. They're more energy-efficient than a storage tank but provide only a limited flow of hot water per minute—about 3.5 gallons, depending on inlet water temperatures.

Do condensing boilers give off carbon monoxide? ›

Modern condensing boilers are very safe and produce less harmful gases than older models. Although they can naturally produce small amounts of carbon monoxide, this gas will be safely disposed of outside through the flue pipe — this is why a condensing boiler should be installed on an external wall.

What is the problem with condensing boiler? ›

Problems with condensing boilers

Radiators that are not properly sized and balanced. Risk of flooding the boiler. Poor installation of the condensate pipe. Poor quality water in the heating system.

Are non condensing boilers legal? ›

Do all new boilers have to be condensing? Because of the building regulations now in place, the vast majority of new gas and oil boilers have to be condensing models. However, there are occasional exceptions to this rule. In rare cases, a condensing boiler may not be a viable option in a particular property.

Should I replace my 20 year old water heater? ›

Visible Damage

A professional can sometimes repair these issues, but if your water heater is older, you'll need replacement. For example, a 20-year-old water heater is nearing the end of its service life and will need to be replaced even if repairs are possible.

Should I replace my 15 year old water heater? ›

Water Heater Lifespan

If your tank water heater is more than 10 years old, it may be time to consider replacing it. With proper maintenance, a tank water heater tank should last six to 12 years. A tankless water heater can last for more than 20 years.

Do condensing water heaters need a drain? ›

Because water vapor condenses inside the unit as the exhaust gas cools, condensing tankless water heaters require a drain (and potentially a pH neutralizer) to dispose of the acidic condensation water.

Is a 30 year old boiler safe? ›

If your boiler is over 25 years old it is likely you require a replacement. Most boilers that are over 25 years old are now viewed as being inefficient compared to modern alternatives.

Is a 40 year old boiler safe? ›

Typically it's recommended to change your boiler every 15 years as an older boiler has to work harder to heat your home. A new boiler will also be running on maximum efficiency which means it will be using less fuel to heat your home - which will help keep heating costs down.

Can a boiler last 30 years? ›

The answer is yes, a boiler can last for 30 years or even more, but as with any piece of equipment, its longevity is dependent on a number of factors. In this post, we will focus on high-pressure steam boilers for industrial and commercial applications and how best to extend their lives.

How much cheaper is a condensing boiler to run? ›

Condensing gas boilers also use around 20-30% less electricity than standard ones, so fitting one could help you cut down your carbon footprint too.

Do condensing boilers lose pressure? ›

It's common for boiler pressure to drop or even fluctuate. It is normally nothing to worry about if your boiler pressure drops between 1 to 2 times a year. A boiler losing pressure more often than this means a potential problem, and you should look for leaks and call in a gas engineer.

What are the three types of condensing boiler? ›

There are three main types of condensing gas boilers: combi boilers, system boilers and conventional (also called traditional, regular boilers, open vent or heat only boilers) boilers.

Is condensing losing energy? ›

Condensation happens when molecules in a gas cool down. As the molecules lose heat, they lose energy and slow down.

What is happening to water when it is condensing? ›

Condensation is the process by which water vapor in the air is changed into liquid water; it's the opposite of evaporation. Condensation is crucial to the water cycle because it is responsible for the formation of clouds.

Does pressure increase when water condenses? ›

This portion of the total air pressure that is accounted for by the presence of water vapor (in this case just one molecule) is called vapor pressure. As the process of condensation continues and the presence of water molecules grows greater, we will see an increase in vapor pressure within the sealed container.

Is it worth it to replace a water heater with a tankless water heater? ›

For many people, the long-term benefits of tankless heaters more than compensate for their initial expense. A tankless heater can be up to 34% more efficient than a traditional water heater. This increase in efficiency can amount to annual savings of over $100, depending on the type and size of the heater.

Should I replace my tank water heater with a tankless? ›

Tankless Water Heaters Last Longer — On average, tankless water heaters last longer than tank-type heaters. Most tank-type water heaters have a life span of 10-15 years. The average life expectancy of a tankless heater is more than 20 years. Therefore, there are substantial long-term savings with a tankless unit.

Which is better tankless or tank hot water heater? ›

If you're looking for an immediate installation with little to no maintenance, a tank water heater might be your best bet. However, if you're interested in saving money on your energy bill and having a water heater that will last longer, you might want to consider a tankless heater.

Is condensing tankless worth it? ›

Condensing tankless water heaters offer a wealth of benefits. Not only do they provide hot water on demand, but they also are incredibly energy efficient. As far as energy costs and usage, condensing water heaters are the clear winner.

Where should tankless water heater not be installed? ›

You should not install your tankless system in an area that is prone to moisture or excess humidity, or where liquids may splash on it. Moisture can corrode the burner and restrict gas supply, causing the system to shut down. The location of your heater should be free from dust and debris.

Can you run out of hot water with tankless? ›

You can't run out of hot water with tankless water heaters - unless, of course, the power supply is off or goes out. However, a tankless water heater can have trouble keeping up with demand if too many things require hot water all at once.

Can 2 people shower at the same time with a tankless water heater? ›

You can buy tankless water heaters that are capable of handling one shower at a time and others that can sustain a maximum of two showers operating at the same time.

What hot water heater never runs out? ›

The tankless water heater is—you guessed it—tankless! Because there's no tank, it doesn't work off of capacity; it works off demand. A tankless water heater heats up water as you need it, and it brings hot water to your appliances quickly—and never runs out.

Do tankless water heaters increase electric bill? ›

The initial cost of a tankless water heater is greater than that of a conventional storage water heater, but tankless water heaters will typically last longer and have lower operating and energy costs, which could offset their higher purchase price.

Are AO Smith and Rheem the same? ›

The similarity between both heaters lies in their type. Rheem and AO Smith manufacture electric and gas heaters. But that is where the similarity ends. The primary differences lie in cost, availability, accessibility, and product range.

Are newer water heaters more efficient? ›

Old water heaters are much less energy efficient, both because they are aging and because standards were lower back then, which could mean more money you're paying each month in energy costs compared to a newer heater. It's generally accepted that most water heaters last an average of about 13 years.

What is more efficient 40 or 50 gallon water heater? ›

Typically, the rule-of-thumb is that you want a 40 gallon tank for 1 to 4 people, a 50 gallon tank for 4 to 6 people, and a 50 gallon high recovery or 75 gallon tank for 6 to 8 people. Energy consumption for 40 and 50 gallon standard water heaters is quite comparable.

What is the new technology for water heaters? ›

Hybrid water heaters are designed to combine the benefits of a conventional tank water heater and a tankless water heater. They have a small storage tank that provides an initial supply of hot water, then heats cold water on demand with a heating element similar to a tankless water heater.

Which type of water heater has the slowest recovery rate? ›

Gas and oil fired water heaters offer the quickest recovery rates, electric water heaters the slowest.

What is the most popular type of water heater today? ›

Conventional Tank Water Heater

Conventional water heaters are by far the most common type of water heater on the market. These water heaters are composed of an insulated tank typically holding anywhere from 20 to 80 gallons of water, which is heated by natural gas or electricity.

Are more expensive water heaters better? ›

“Typically, the higher the cost, the better the unit will run.” You will, however, spend more up front for a gas hot water heater, such as the AO Smith 50-Gallon Proline Gas Water Heater, than you'll spend for a similar-size electric hot water heater, such as the AO Smith 50-Gallon Proline Electric Water Heater (both ...

What is the most common problem with water heaters? ›

Water leaks are perhaps the most common type of water heater issue you'll face. Any water heater will start to leak eventually, as by nature water will eventually corrode your tank and create microscopic cracks or fractures. However, this isn't always a sign that your tank is what's leaking.

Are tall or short water heaters more efficient? ›

All other things being equal, the smaller the water heater tank, the higher the efficiency rating. Compared to small tanks, large tanks have a greater surface area, which increases heat loss from the tank and decreases the energy efficiency somewhat, as mentioned above.

What are the major advantages of a condensing boiler? ›

The main advantage is the boiler's efficiency. Through recycling waste gases back into the system, a condensing boiler can have approximately 90% energy efficiency. This is vastly superior to the efficiency of a traditional boiler which is typically between 70-80%.

What is the difference between condensing and non-condensing gas boilers? ›

Whereas non-condensing designs, often known as open vent boilers, typically take in air from inside the room, condensing boilers are completely sealed for heat insulation and they take their air from the outside. This means there is a lower risk of anything being sucked into condensing boilers.

Which water heater is more efficient? ›

For example, an electric heat pump water heater typically is more energy efficient than an electric conventional storage water heater.

Do condensing boilers save money? ›

Due to this heat recovery process, condensing boilers are much more efficient than old non-condensing boilers, resulting in reduced carbon emissions, energy waste and lower heating costs.

What is the downside of tankless? ›

The biggest downside of tankless water heaters is their higher initial cost. A good quality tankless heater will run you more than a traditional storage-tank model, although the savings in energy costs over time can make up for this difference.

Do I need a hot water tank with a condensing boiler? ›

Condensing boilers don't necessarily need a hot water tank or cylinder in order to work — that will depend on the type of boiler you have in your home. Combi boilers do not use a hot water tank, but heat only or system models do.

Are new condensing boilers more efficient? ›

Modern boilers are more efficient than older boilers for several reasons, but their main advantage is that they are 'condensing'. A condensing boiler recovers more heat from the exhaust flue gas and uses it to heat the central heating water, making it more efficient than older boilers.

Which is the No 1 water heater brand? ›

Regular electric water heaters (geysers) are usually considered the best. Which geyser brand is best for home? Some of the best brands are Crompton, Bajaj, V-Guard, Havells and AO Smith.

What is the best water heater to never run out of hot water? ›

The tankless water heater is—you guessed it—tankless! Because there's no tank, it doesn't work off of capacity; it works off demand. A tankless water heater heats up water as you need it, and it brings hot water to your appliances quickly—and never runs out.

What type of water heater lasts the longest? ›

Tankless water heaters have the longest life expectancy of all three types at more than 20 years. Many parts can easily be replaced based on the heater's design, elongating the water heater's lifespan.

References

Top Articles
Latest Posts
Article information

Author: Rev. Porsche Oberbrunner

Last Updated:

Views: 5945

Rating: 4.2 / 5 (73 voted)

Reviews: 88% of readers found this page helpful

Author information

Name: Rev. Porsche Oberbrunner

Birthday: 1994-06-25

Address: Suite 153 582 Lubowitz Walks, Port Alfredoborough, IN 72879-2838

Phone: +128413562823324

Job: IT Strategist

Hobby: Video gaming, Basketball, Web surfing, Book restoration, Jogging, Shooting, Fishing

Introduction: My name is Rev. Porsche Oberbrunner, I am a zany, graceful, talented, witty, determined, shiny, enchanting person who loves writing and wants to share my knowledge and understanding with you.