The reason is because like a standard water heater they create dangerous combustion gases when they fire.
Tankless gas hot water heater venting.
Tankless water heaters can vent through the roof or a side wall creating more flexibility and options for placement.
All indoor tankless gas water heaters must be vented vertically or horizontally to the outdoors using factory approved venting material no other venting material is permitted.
Tankless water heaters use fans to blow exhaust from the unit horizontally allowing vents to terminate on the side of a house.
However it doesn t have to be an expensive hassle to vent.
Traditional gas tank water heater require venting through the roof.
If you have a gas fueled tankless water heater that is installed inside the house it needs to be vented to the outside.
Tankless water heaters can be vented in two ways.
Electric tankless water heaters do not need to be vented but gas tankless heaters do.
The gases contain carbon monoxide.
It doesn t matter if the gas is natural gas or propane this fact remains the same.
Power vent and direct vent.
Power vent units use indoor air for combustion and simply vent the exhaust to the outside.
Direct vent units attract outside air from the house or building while power vent units solely need an exhaust vent and should be installed in a larger area for receiving sufficient air amount for combustion.
Tankless water heaters are ventilated in two ways.