8Cold waterCold waterGasGasHot waterHot waterCondensateCombustion gasAbout 400°FAbout 400°FExhaust ExhaustAbout 120°FConventionaltypeCondensingTankless GasWater Heater Water is heatedusing the exhaustgas which is about400°F .First heat exchangerFirst heat exchangerSecondary heat exchangerNeutralizerCombustion gasAbout 400°FThe condensing tankless gaswater heater dischargescondensate.When heat from the exhaust gas is collectedwithin the secondary heat exchanger,condensation occurs from moisture in theexhaust gas and the resulting water isdischarged from the drain pipe (approx. 2gallons/hour (GPH) maximum). It is not awater leak. Do not plug or block the drain lineas it must always be allowed to freely flow.Drain pipe(Installation example)Overview of Condensing Tankless Gas Water HeaterThis water heater is a high efficiency, fully condensing appliance. Unlike a traditional tankless waterheater, a condensing type captures heat from the exhaust gas and uses it to preheat the incomingcold water as it passes through the secondary heat exchanger as illustrated below.The condensing tankless gaswater heater tends to showwhite steam.After the exhaust gas passes through thesecondary heat exchanger, it becomes low intemperature and moisture rich which tends toproduce steam at the vent discharge terminal.This is a normal occurrence.Condensatecomes outfrom here.During combustion, whitesteam may often be seen.This is normal.