While condensate may not pose an immediate problem the way a leak does excessive condensation can lead to pilot light outages and cause your water heater to corrode prematurely.
Can tankless hot water heaters leak.
Check the plumbing pipes above the water heater using a stepladder if necessary.
Lack of adequate venting will cause water leakage and it is a well known culprit for tankless water heaters.
Mostly in case it happens tankless water heaters leak from the bottom or along with the connections.
Even though the leak is substantially less than a tank containing the water and conveying it safely away can save thousands of dollars in property damage.
If condensation is continuing it might fall the entire system.
However as time goes the leakage may turn out to be catastrophic if not taken seriously.
Architects and engineers understand that when a tankless water heater reaches the end of its life it will likely leak just like a tank.
It may seem not a big deal at first.
The first place to check is the plumbing pipes above the water heater.
If your tankless water heater is dripping water it should be serviced or replaced as soon as possible.
Water leaks from your water heater are a symptom of a much bigger problem in wait.
A drip from above can easily leak down on top of the water heater and even work its way down the insulation and make it look like the leak is coming from the tank itself.