Tankless water heaters are popular because they provide hot water on demand without storing a large volume of heated water. But homeowners should understand both the advantages and limitations before making a purchase.

One important decision is whether to choose a condensing or non-condensing gas tankless model.

Condensing systems recover heat from exhaust gases, which generally improves efficiency. However, they require condensate drainage and may have more complex installation requirements.

Non-condensing systems have a simpler heat-exchange design. They usually cost less initially, but their hotter exhaust requires appropriate metal venting.

Potential Benefits

Tankless systems can provide continuous hot water when correctly sized. They can also save space compared with conventional storage tanks.

Potential Challenges

Tankless installations can require changes to gas supply, venting, electrical connections, or plumbing. Incorrect sizing can also result in inadequate hot-water performance.

For these reasons, installation should not be treated as a simple appliance swap.

If you're deciding between the two main gas tankless technologies, read this tankless water heater pros and cons guide: https://toptechmech.com/condensing-vs-non-condensing-tankless-water-heater/

A professional evaluation can help determine which technology is suitable for your home's existing infrastructure.