hand washing

Residential High-Efficiency Condensing Gas Tankless Water Heaters

Designed to provide uninterrupted hot water on demand, propane and natural gas tankless water heaters offer versatile installation options. These units can be easily installed in compact spaces such as closets, bathrooms, and even outdoors in suitable climates.

high efficiency tankless water heaters

Residential High-Efficiency Condensing Gas Tankless Water Heaters

State's condensing natural gas and propane tankless water heaters boast exceptional efficiency. With options for both indoor and outdoor configurations, these tankless models combine high efficiency with innovative designs.

Federal Tax Credits & Local Utility Rebates

Get up to $600 in Federal Tax Credits, plus local utility rebates may be in your area when you upgrade to a gas tankless water heater!

*Gas water heaters with UEF of 0.82 or higher OR with a thermal efficiency of at least 90%. Local utility rebates available in limited geographical areas. For information on the Federal Tax Credit, go to: energystar.gov. Check with your tax advisor for applicability. Offer details and expiration may vary. See Rebate Center for details.

What Our Customers Are Saying

Benefits of Condensing Gas Tankless Water Heaters

washing hands

Continuous Hot Water

Condensing gas tankless water heaters produce continuous, on-demand hot water for your home and can provide instant hot water when the model includes a recirculation pump.

babies in tub

Space Savings

State’s condensing tankless water heaters can be mounted in small or tight places both inside and outside of your home to better utilize and save space.

mother holding child

Energy Savings

Condensing tankless water heaters utilize the residual heat from the exhaust gasses to make hot water. That higher efficiency operation means lower operating costs and energy savings.

How it Works

water heater

A condensing tankless water heater offers a continuous hot water supply while saving space, but what distinguishes it from a non-condensing unit is its ability to utilize excess heat efficiently. Unlike tank water heaters, which store water, tankless units rapidly heat water as it flows through the heat exchanger.


Condensation is formed by employing a condensing-designed heat exchanger to capture and cool excess heat, maximizing energy conservation. This process elevates the efficiency of condensing tankless units, resulting in a Uniform Energy Factor (UEF) exceeding 0.90 and greater hot water output compared to non-condensing tankless heaters. Backed by a 15-year limited warranty, State's condensing tankless water heaters ensure years of reliable hot water for your home.

Still Have Questions?

A condensing gas tankless water heater uses condensing technology for energy efficiency. Similar to a non-condensing model, it heats water through a heat exchanger only when needed, instead of storing it in a tank. However, a condensing water heater is equipped with a second heat exchanger to boost efficiency and performance. It captures 95% of the heat produced, recycling this energy to heat more water instead of venting it outside of the heater. A condensing gas tankless water heater only releases vapors that have cooled to the point that they're not useful for heating.

Traditional water heaters are non-condensing, venting hot water vapor outside of the home along with combustion gasses. A condensing water heater is more efficient, keeping more of this heat inside the tank and recycling it to heat more water. While condensing tankless water heaters may have a higher upfront price per unit, their higher energy efficiency allows you to achieve cost savings over time. Total installation cost can differ, depending on your specific venting requirements.

Tankless water heaters offer the option of venting through an exterior side wall instead of through a chimney flue on the roof. Water heaters that are direct venting have two vents — one that pulls in air from the outside and one that carries away exhaust. Power venting water heaters draw air from inside the room and have only a single vent for exhaust. While non-condensing tankless water heaters require stainless steel venting to handle the temperature of heat that's released, condensing tankless water heaters can use plastic venting such as PVC. They have already used the hot vapors to heat more water, leaving only cooler fumes for ventilation.

Our tankless water heaters come with a competitive 15-year limited warranty. The life of a unit may depend on your incoming water quality, usage, and maintenance. Hard water can leave mineral deposits on the heat exchanger and reduce its efficiency. You can extend the life of a condensing tankless water heater through regular maintenance and servicing, which includes cleaning and replacing filters, checking the burners and flushing mineral buildup. Many of State’s new condensing gas tankless water heaters come with X3® Scale Prevention Technology that eliminates the need for regular descaling and extends the unit’s life up to three times.

The proper size of a tankless water heater depends on several variables, including the type of appliances you own, the number of people in your home, and the incoming water temperature. You should discuss this with your installer, but you can also consult our online XPERT™ Water Heater Selector, which is also available as a downloadable app.

Product Comparison

 
ProLine
ProLine XE
 
Standard Non-Condensing Gas Tankless Water Heater
High-Efficiency Premium Condensing Gas Tankless Water Heater
 
Standard Non-Condensing Gas Tankless Water Heater
High-Efficiency Condensing Gas Tankless Water Heater
 
GTS-510U
STHR-199X3
Single Shower Length
Unlimited
Unlimited
Showers Back-to-Back
Unlimited
Unlimited
Showers at the Same Time
2.6 showers
3.1 showers
Maximum Tub Size
Unlimited
Unlimited
X3® Scale Prevention Technology
 
X
Continuous Hot Water
X
X
Space Savings
X
X
Energy Efficiency
 
X
UEF
0.62
0.95
Warranty
15 Years
15 Years


*Many factors affect the actual performance of a water heater. This represents our closest approximation of your likely experience with this water heater in your local area, but actual performance may vary depending on factors beyond our ability to control or estimate.

Plumbing Professional

Get it installed by a Local Pro

State Water Heaters are available through your local plumbing professional.

Featured Condensing Gas Tankless Water Heaters

customer using phone

Not sure which product is right for you?

Take our water heater selector quiz to find the correct water heater for your home.

Interested in Learning More?

Pro Toolkit

Why State Water Heaters?

When it comes to building durability into a product, nobody does it like State. In fact, we've tested our water heaters in some of the most hostile environments and under the toughest conditions to make sure they last longer and provide many more years of hot water.
Learn More About State Water Heaters