


Yeah, I too get a bit of a laugh out of the "
98% thermal efficiency" numbers for Naviens, in much the same way that I do with the overzealous mod-con boiler advocates.
An on-demand hot -water heater almost BY DEFINITION short-cycles on most of it's burns. Anything less than 5 gallons would be an efficiency-robbing short-cycle for tankless, condensing or otherwise, and even though the bulk of the water use is indeed bathing/shower draws greater than 5 gallons, the numbers of short-cycles, the fixed-losses per burn (flue purges & ignition sequences) add up- they aren't anything LIKE 98% efficient, or even 90% in real-world situations, no matter what their EF number is. (An EF test takes 10+ gallons at every draw, enough to signficantly inflate the performance of a condensing tankless.)
What determines the real as-used efficiency is how well the unit manages the fixed losses on short-draws of 2 gallons or less, not whether it's condensing/non-condensing. Depending on real world use patterns and the fraction of large/small volume draws, a non-condensing tankless will run anywhere from 75-80% efficiency, whereas a condensing unit might run 75-85%, no more.
Used as a condensing space-heating boiler a condensing tankless can indeed hit 90%+, but only if the return water entering the tankless is below 110F. In order to hit 98% the return water would have to be under 70F. While not-too-likely in a heating system, 98% efficiency possible for high volume hot-water draws, since the water from street is typically well below 70F. But the average efficiency as a hot-water heater will always be considerably lower than it's steady-state thermal efficiency.
Tankless HW heaters see a huge number of ignition & flue-purge cycles, robbing efficiency as well as wearing out some of the sub-systems. Even a small well-insulated buffer tank can cut the number cycles by more than half and increase the overall efficiency (while getting rid of the "cold-water sandwich" issue) for the efficiency cost of a small standby loss (less than 1%). From a fuel-saving point of view it's not always cost-effective for just water-heating, but in a combi space-heating/DHW system it can be. (Systems using a reverse-indirect like a ThermoMax or ErgoMax as a heating system buffer while acting as a DHW heat exchanger tends to work well for homes with low/moderate design-day heat loads of 25-75KBTU/hour. But if it's an already high mass low temp radiant-slab heating system where lower than 110F temp heating water is typical the reverse-indirect-as-buffer approach is less than ideal.)
The best selling point for a condensing tankless is when it can use a cheap PVC vent stack instead of stainless/Z-vent for the standard-efficiency model. In installations with long vent runs the installed cost of a condensing tankless + PVC vent sometimes works out to about the same or less than a standard-efficiency unit + Z-vent. In those cases taking the (very modest) efficiency savings offered by the condensing unit seems fair.
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