Choosing between condensing and non-condensing boilers hinges on efficiency, installation needs, and long-term operating costs. This guide compares top-tier options that align with American homes and hot-water needs. We’ll highlight five relevant products, explain who each is best for, and provide practical buying tips to help you decide between condensing and non-condensing models.
The following table summarizes five representative products that address different priorities, from outdoor-friendly non-condensing gas tanks to compact indoor condensing units. Use this at-a-glance reference to compare capabilities, installation needs, and intended applications.
| Product | Best For | Key Benefit | Notes |
|---|---|---|---|
| Rheem RTG Series 7.0 GPM Tankless (Non-Condensing) | Large homes needing outdoor, vent-free setup | Endless hot water with outdoor installation | Energy-efficient non-condensing design |
| Rinnai IP199199C I-SERIES Plus Condensing Combi Boiler | Homes needing space heating plus hot water | High efficiency with 96% AFUE | Combi unit for hot water and space heating |
| Rinnai IP060S I-SERIES Plus Condensing Solo Boiler | Compact indoor boiler with high efficiency | Condensing technology in a small footprint | Natural gas or propane options |
| A. O. Smith ATI-540P-N Condensing Indoor Boiler | 3+ bath homes with recirc capable setup | High flow and integrated recirc pump | Durable marine-grade materials |
| Rinnai RE199iN Non-Condensing Indoor Tankless | Indoor, space-efficient whole-house hot water | Reliable on-demand hot water with compact design | Non-condensing, easier installation |
Rheem RTG Series Non-Condensing Tankless Water Heater

The Rheem RTG Series delivers on-demand hot water for whole-house use with a 7.0 GPM rating at 35°F rise, equating to about 160,000 BTU/hr. Best for larger families in outdoor installations where venting is not required, this model emphasizes energy efficiency with a 0.82 UEF compared to traditional storage tanks. It’s ideal when you want a ventless outdoor solution that reduces standby losses by eliminating storage. A key limitation is its outdoor placement, which may not suit harsh climate zones without protective housing.
- Best for: Outdoor installs, large homes with multiple bathrooms.
- Why selected: Strong continuous hot water with simple outdoor mounting.
- Caution: Outdoor units require weather protection and professional mounting.
Rinnai IP199199C I-SERIES Plus Condensing Combi Boiler

This combi boiler combines hot water with space heating, delivering efficient performance for residential or light commercial use. With a 96% AFUE rating, it offers substantial energy savings while reliably meeting simultaneous hot water needs and space heating requests. Smart Sense Gas Valve technology helps manage energy use precisely. Best for homes that want one compact solution for both heating and domestic hot water.
- Best for: Homes needing both space heating and hot water in one unit.
- Why selected: High efficiency with integrated controls for better energy management.
- Caution: Higher upfront cost than simple water heaters; may require professional integration with existing heating systems.
Rinnai IP060S Condensing Solo Boiler

The IP060S condensing boiler is designed for indoor use where space is at a premium. It offers high efficiency and flexibility with natural gas or propane options. This unit is well-suited for homes needing reliable heating and domestic hot water while maintaining a compact footprint. A limitation is its smaller BTU rating relative to larger homes, which may require pairing with other heat sources in very cold climates.
- Best for: Indoor installations in smaller-to-midsize homes.
- Why selected: Condensing efficiency in a compact form factor.
- Caution: Not ideal for very high hot-water demand without supplemental heating.
A. O. Smith ATI-540P-N Condensing Indoor Boiler

The ATI-540P-N is a high-flow condensing indoor boiler designed for homes with three or more bathrooms. It features integrated recirculation, helping deliver hot water faster to fixtures and improving overall efficiency. Made with durable materials, it’s positioned for long-term reliability in residential applications. Best for: larger households seeking quick hot water and strong heating performance. Limitation: Recirculation may require additional bypass hardware to optimize performance in some layouts.
- Best for: Medium to large homes with higher hot-water demand.
- Why selected: Combines condensing efficiency with recirculation for instant hot water.
- Caution: Recirculation integration may require extra plumbing components.
Rinnai RE199iN Non-Condensing Indoor Tankless

The RE199iN is an indoor, non-condensing tankless model designed for space-efficient whole-house hot water. It delivers up to 9.8 GPM, ideal for mid to larger homes with multiple showers and appliances running simultaneously. It features a compact wall-mounted design and a long-term warranty profile. Best for: installs where space is constrained and straightforward maintenance is preferred. Caution: Non-condensing design means slightly lower efficiency than condensing models over time, depending on usage patterns.
- Best for: Indoor installation with steady hot water needs in rooms with limited space.
- Why selected: Reliable performance with compact footprint.
- Caution: Efficiency may be lower than condensing rivals under certain usage patterns.
Buying Guide: Condensing vs Non-Condensing Boilers
What matters most is your climate, water usage, and whether you want to maximize energy efficiency or favor simpler installation. Condensing boilers capture and reuse exhaust heat to reach very high efficiency (often above 90%), which lowers operating costs over time. They typically require additional venting or compatible venting configurations for indoor units, but they excel in homes with consistent hot-water and space-heating needs.
- Purpose and use: If you need space heating in addition to hot water, consider condensing combi or standalone boilers. For outdoor or vent-free setups, non-condensing tankless units may be preferable.
- Efficiency and costs: Condensing models generally offer higher efficiency and greater long-term savings, but upfront costs can be higher.
- Ventilation and placement: Indoor condensing boilers may require proper venting and space planning; outdoor non-condensing units bypass some of these needs but require weather protection.
- Water heating capacity: Match GPM and BTU ratings to your peak simultaneous use, such as showers, laundry, and dishwashers. For large homes, higher flow rates matter more than unit type.
- Maintenance and warranty: Look for durable materials, long heat-exchanger warranties, and recirc pump options if you value instant hot water.
FAQ
- What is the main difference between condensing and non-condensing boilers?
Condensing boilers recover heat from exhaust gases to improve efficiency, while non-condensing units vent hot gases with typically lower efficiency. - Are condensing boilers worth the higher upfront cost?
They usually offer better long-term energy savings, especially in homes with steady heating and hot-water demands. - Can non-condensing boilers be used indoors?
Most non-condensing tankless models are designed for outdoor use or well-vented spaces; indoor applications require careful venting. - Do all condensing boilers require a recirculation pump?
No, but many condensing units benefit from integrated or compatible recirc options to deliver instant hot water. - Which is better for a multi-bath home: condensing combi or non-condensing tankless?
Condensing combi boilers can deliver space heating and hot water efficiently, while non-condensing tankless units excel at dedicated hot-water supply for large homes with sufficient gas supply. - What should you consider before choosing a boiler?
Consider climate, gas type, installation space, peak hot-water demand, and whether you need space heating alongside hot water.