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The Daily Insight

Do tankless water heaters need a drain pan

Author

Andrew Campbell

Published Mar 31, 2026

Every major brand of tankless requires a drain pan if the unit is installed where a leak can cause damage to the home or building. Architects and engineers understand that when a tankless water heater reaches the end of its life it will likely leak, just like a tank.

Does a non condensing tankless water heater need a drain?

The excess heat that is not transferred to the water is expelled through the exhaust venting. This exhaust is higher temperature than on a condensing tankless heater to lessen the risk of corrosion. However, non-condensing heaters generally require metal exhaust venting to withstand the higher temperatures.

Why are tankless water heaters condensing?

Condensing tankless water heaters save more money by recycling their byproducts to produce extra heat. Depending on how you’ve connected the condensation line, this byproduct can potentially be recycled back into your water lines, thereby reducing your water bills (slightly).

What is the downside of a tankless water heater?

The main disadvantage of tankless water heaters is their upfront cost (unit and installation) is significantly higher than tank-style heaters. Including installation, tankless water heaters cost 3 times more than tank-style water heaters on average. … they cannot provide hot water during a power outage.

What's the difference between condensing and non-condensing tankless?

A Non-Condensing tankless water heater will push these hot gases through its vent to the outside. They will then cool down outside the unit. … Condensing Tankless Water Heaters extract the additional heat from the exhaust gases through various means and therefore exhaust cooler gases, usually around 100 degree F.

Why is tankless water heater installation so expensive?

Installation is expensive because the unit needs a bigger gas supply than a conventional water heater does, and it needs to run its own exhaust flue to the exterior. Installation costs can vary widely, depending on the location of the flue and the gas supply. The unit itself costs between $800 and $1,000.

How much do plumbers charge to install a tankless water heater?

The average hourly rate for a plumber to install a tankless water heater falls between $45 and $150 per hour. Final labor totals average between$100 to $450.

Is a GFCI outlet required for tankless water heater?

In a garage, every 120, 15 and 20 Amp receptacle outlet needs to be GFCI protected, so if you have a tankless water heater in the garage, it should be protected as well.

Do tankless water heaters have endless hot water?

Tankless water heaters are able to provide endless hot water because they heat your water on-demand instead of from a tank (which can eventually run out of hot water). After the demand for hot water has been fulfilled, the water heater turns off and the heat exchanger cools back down.

Can you install a tankless water heater in a closet?

Your tankless water heater can be installed just about anywhere! Due to the small size of your water heater, it can be mounted in many small spaces, including closets, under sinks, in pantries, or under stair storage areas.

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Do tankless water heaters have to be on an outside wall?

It is possible to install a tankless water heater outside and free up indoor space. The roof or side wall can be used as a vent for the tankless water heaters. Venting through the roof is required for traditional gas tank water heaters.

Does Rinnai make a condensing tankless water heater?

Rinnai condensing tankless water heaters come from the “Ultra” series, a series of the most advanced and efficient models.

Are navien water heaters good?

Navien is a solid choice when it comes to tankless water heaters. Their units are manufacturered by a company that takes pride in quality, design, and user friendliness. In fact, there’s no shortage of satisfied customers!

What type of vent does a tankless water heater use?

Tankless water heaters can be vented in two ways: power-vent or direct-vent. Power-vent units use indoor air for combustion and simply vent the exhaust to the outside. Direct-vent units pull in air from the outside, so they have two vents for intake and exhaust.

Is a condensing water heater worth it?

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%.

How much water does a condensing tankless water heater produce?

Typically, tankless water heaters provide hot water at a rate of 2–5 gallons (7.6–15.2 liters) per minute. Gas-fired tankless water heaters produce higher flow rates than electric ones.

How much does it cost to install a tankless water heater from Home Depot?

The Home Depot offers traditional water heater tanks and modern tankless units, both powered by either gas or electricity. Depending on your selection, the average cost for water heater installation is between $1,000 to $3,000.

Is a tankless water heater worth the cost?

While month-to-month water heating costs are cheaper with a tankless unit, it could take years to make up for the high initial cost. Over time, a homeowner will likely come out ahead, but according to Consumer Reports, the energy savings for going tankless add up to $75 per year, on average.

How many years does a tankless water heater last?

How Long Do Tankless Water Heaters Last? Gas-burning tankless water heaters should operate for 20 years or more, two or three times longer than tank-type heaters. Tankless electric units have shorter life spans, on the order of 7 to 10 years.

Can you claim a tankless water heater on your taxes?

Homeowners who have made energy-efficient improvements, including an upgrade to a Rinnai Tankless Water Heater, may qualify for a $300 US federal tax credit known as the Nonbusiness Energy Property Credit.

How do I make my tankless water heater heat faster?

Recirculating Pumps for Instant Hot Water Another way to get instant hot water for your tankless is to have a recirculating pump. The way they work is to create a loop from the heater to your fixture. A thermostat detects when the water is cooling down and trips the heater to heat the water.

What are the electrical requirements for an electric tankless water heater?

One whole-house tankless water heater has four 7,000-watt elements, for a total electrical load of 28,000 watts. This load re- quires wire and a circuit breaker that will handle at least 120 amps, at a cost many times that of electrical service to a conventional tank water heater.

What size breaker do I need for a tankless water heater?

A gas tankless water heater only needs a 15-amp, 120 volt dedicated single-pole breaker for this purpose.

Where are GFCI breakers required?

The NEC mandates GFCI protection in many areas of the home: bathrooms, garages, outdoor receptacles, crawl spaces, basements, kitchens and anything within six feet of a sink or water source. While that may seem like a lot, the entirety of a home is not covered.

Where should a tankless water heater be installed?

The ideal location for your water heater is inside the home. Most installations are small and unobtrusive so they will easily fit in a pantry, under the stairs, or under your sink. If you must place the water heater outside, make sure it’s safe from direct sunlight, rain, and insects.

Does water heater closet need to be vented?

The Vent. When a residential, gas fired water heater is installed in a closet, the heater combustion gases must be vented to the outside of the residence and the fresh air needed for combustion must be drawn in from outside the home using double wall metal pipe; single wall pipe is not permitted.

How much ventilation does a tankless water heater need?

4. Outdoor tankless water heaters don’t need venting. In warmer climates, it’s easy to install a tankless water heater outdoors, with no additional venting required. Tankless units are designed to withstand below-freezing temperatures through self-warming capabilities that prevent freezing and cracking.

Can you mount a tankless water heater on drywall?

A new tankless unit can be installed flush—against the drywall or plaster—or set into the wall, between studs. If you want to set the unit into the wall, use a stud finder to locate studs and cut a hole between them. Attach the unit to the wall following the manufacturer’s instructions.

Can an outdoor tankless water heater be installed in a garage?

As long as enough combustion air is provided, tankless water heaters can be installed in place of your old water heater or anywhere in your home. This includes utility rooms, garages, basements, attics, or mounted on outside walls.

How do I keep my tankless water heater from freezing outside?

  1. Install Your Water Heater in a Warm Place. …
  2. Drain Your Water Heater. …
  3. Maintain a Power Source. …
  4. Consider a Recirculation System. …
  5. Insulate, Insulate, Insulate. …
  6. Run a Trickle of Water.

How long will a Rinnai tankless water heater last?

The life expectancy (or useful lifespan) of a Rinnai tankless water heater is up to 20 years. Actual life is impacted by water quality, usage and proper maintenance. For comparison, a tankless water heater lasts about twice as long as a tank water heater, making them a better value in the long run.